Woongjin Coway hit for poor customer service

Members of the maintenance workers' union at Woongjin Coway stage a rally asking for job security guarantees in front of the Netmarble headquarters in Seoul, Oct. 29. / Yonhap

By Baek Byung-yeul

Woongjin Coway CEO Ahn Ji-yong

Woongjin Coway is struggling to deal with growing consumer complaints as it has been unable to offer after-sales services in a timely manner due to the ongoing strike by its union workers, according to industry officials Thursday.

The employees have been staging walkouts over the past several weeks, demanding job security and better working conditions, since Netmarble was chosen to take over the management of Korea's largest home appliance rental company.

Netmarble, one of the largest game companies here, was selected last month as a preferred bidder for a 25 percent stake in Woongjin Coway, Korea's No. 1 appliance rental service provider, for 1.8 trillion won ($1.55 billion).

The two sides are expected to sign a share purchase agreement by the end of the year, but there have been delays in after-sales service as the union has been staging a rally in front of Netmarble headquarters in Seoul since Oct. 29, demanding the game company disclose everything pertaining to the acquisition process of Coway and guarantee their continued employment.

Consumers have expressed their complaints as the protest has led to a halt in maintenance services.

“My water purifier wasn't working because the lever is broken. So I contacted customer services but the service has been delayed. I learnt from the news that the after sales service has been postponed due to a labor issue. I hope the issue gets resolved soon so I can fix my water purifier,” a Woongjin Coway consumer posted on an IT discussion website.

The maintenance workers' union said they are protesting both Woongjin Coway and Netmarble, saying each is trying to shift the responsibility onto the other.

“Some maintenance workers suspended their activities in protest against both Woongjin Coway management, which does not want to negotiate, and Netmarble, which will likely be our future owner,” Kim Kyung-won, secretary general of the union, told The Korea Times.

“The management of Woongjin Coway keeps saying they cannot guarantee our job security because they will sell control to Netmarble soon. And Netmarble also isn't trying to converse with us saying the acquisition process has not been completed yet. Thus, we are suspending our activities demanding three-party talks.”

Kim expressed regret over growing consumer inconvenience but said they are exercising their union rights, urging Woongjin Coway and Netmarble to show progress in talks.

“We apologize for any inconvenience Woongjin Coway customers have experienced. However, we are exercising our rights as a labor union in due course. We are protesting the two companies simply because they are not trying to actively negotiate the issues on the table,” he said.

In response to the union's protest, Woongjin Coway said the company is trying to find measures to address the issue, having conversations with the union members.

“There might be delays in maintenance services. To resolve the issue, we are trying to find a solution based on conversations with the union. We will keep working on achieving mutual growth of the company and its employees,” a Woongjin Coway official said.

Netmarble distanced itself from the issue, saying it “acknowledges that Woongjin Coway is currently discussing the corresponding matter with its maintenance workers' union.”

“Netmarble has not completed the acquisition process yet. We are currently conducting an inspection of Woongjin Coway as a preferred bidder, so we are not in a position to comment on this issue,” a company official said.