NC promises employment security for spun-off employees... Guarantee period is '3 years'

"Reemployment at Headquarters if Sold or Closed Within 3 Years"

NCSoft, preparing for a spin-off, has promised job security to employees joining the newly established corporation. However, by setting the guarantee period to "3 years," backlash is expected from employees who anticipated full job security.

According to industry sources on the 31st, NCSoft held a briefing session the previous afternoon for employees subject to the spin-off. Park Byung-moo, NCSoft co-CEO, and Koo Hyun-beom, Chief Operating Officer (COO), attended the briefing representing the company.

COO Koo stated, "There is no scenario of closure after the spin-off, but if the new corporation is sold or closed within 3 years, we promise to rehire the employees subject to the spin-off back to the headquarters."

Accordingly, employees who will transfer to the two companies launching from the split will have their employment contracts with the headquarters carried over as is. Their accumulated tenure at NCSoft will also be transferred, and the flexible working system will be applied equally as at the headquarters. The criteria for calculating severance pay will not change, and welfare conditions will be applied identically to those at the headquarters.

Regarding the three-year period, COO Koo said, "There is a certain standard behind it," adding, "After 3 years, depending on business performance, wage increase rates may rise or fall."

Co-CEO Park also emphasized that "the number of affiliates will gradually increase through investments or mergers and acquisitions, and the new corporation is expected to become a profit center as demand for work increases," suggesting that the possibility of closure is low.

The issue lies in the situation after the promised three years. According to the company's explanation, at the point when the new corporation reaches its third year, whether it closes or is sold, employees will no longer be able to return to the headquarters.

It is also uncertain whether the company will keep its promise to guarantee reemployment within three years. Employees requested that the company document the promises made during the briefing, but the company declined. COO Koo said, "A written promise is meant to alleviate concerns, but the current situation is fluid," adding, "It is appropriate to approach this with soft conditions rather than hard ones, so we are not considering formalizing the promise in writing."

Compared to spin-off cases at competing companies, NCSoft's pledge on this day was evaluated as sufficient to deepen employees' sense of loss. Previously, Nexon established Devcat and Nitrostudio in 2020, promising to bring employees back to the Nexon Group (Nexon Korea, Nexon Games, Neople, etc.) if the new corporations closed. Additionally, they provided a one-time incentive of 10 million KRW to employees joining the new corporations. Currently, NCSoft is reported to have no plans to provide consolation money (incentives) related to the spin-off.

NCSoft plans to hold a second briefing session for employees subject to the spin-off before the Chuseok holiday in September.

This content was produced with the assistance of AI translation services.