Netmarble's second-tier subsidiary Gurobal Games has begun corporate liquidation proceedings. Employees at Gurobal Games are challenging the method of liquidation and the employment measures, demanding procedural legitimacy and alternatives from the company.
According to the union on the 10th, Gurobal Games held an in-house briefing on the 8th to announce its plan to dissolve the corporation and a retirement program. The company said it would pay two months of consolation money in addition to the basic severance to employees who choose to retire within this month, and that it would also consider the possibility of transfers to Netmarble affiliates. Gurobal Games has about 40 employees.
However, the company reportedly notified employees that if they do not submit a "letter of resignation and consent to standby assignment" by the 12th, three days after announcing the liquidation, it would be impossible to pay the consolation money. The union criticized this, saying, "It is a structure that prevents employees from receiving compensation unless they choose to resign," and "It is nominally a voluntary resignation, but in substance a pressured demand to quit." With all development and operations employees affected by this decision, upcoming one-on-one interviews, criteria for transfers, and conditions for consolation money are emerging as key issues.
Meanwhile, Gurobal Games traces its origins to Its Games, the developer of the mobile massively multiplayer online role-playing game (MMORPG) "Aden." After Netmarble acquired it, the company changed its name, and the name "Gurobal" is said to reflect the intention to leap from Guro, Netmarble's growth base, to a global company. The company has gone through several management reshuffles since founder and former CEO Kim Beom-soo stepped down, and it is currently organized under Kabam, Netmarble's North American subsidiary. Kabam holds 99.36% equity, and Chair Bang Jun-hyuk holds 0.64%.
The corporate financial condition has deteriorated over a long period. Gurobal Games is understood to have accumulated losses of about 67 billion won. The recent failure of "King Arthur: Legend Rises" to gain traction shook its revenue base, and to continue operations, a paid-in capital increase or financial support from Netmarble or Kabam was essential. However, after a group-level review of additional investment, support was halted and liquidation was finalized.
A Kabam official said, "Kabam inevitably decided on this liquidation after determining that the management environment had worsened due to 'King Arthur: Legend Rises,' released in Nov. last year, performing below expectations, that accumulated losses reached 67 billion won, and that business continuity, including new game development, would be difficult," adding, "Kabam will conduct sequential interviews with Gurobal Games' executives and employees, and if they wish to transfer to affiliates, we will support the related procedures."