The NHN labor union condemned management's sale of affiliates and business closures and urged the company to guarantee job security.
The Korean Confederation of Trade Unions (KCTU) Chemical, Textile and Food Union NHN chapter held a press conference on the 22nd in front of the NHN headquarters in Seongnam, Gyeonggi Province, and stated accordingly that management's downsizing of affiliates is a "black-box restructuring."
The union said, "Although NHN Group's revenue and operating profit have been on the rise for the past four years, it has wound down some 20 affiliates under the pretext of 'sound management,'" and noted, "Across numerous entities—from NHN Cloud, Payco and Weto to NHN Edu—it has repeated recommended resignations, citing business closures and organizational reshuffles."
According to the union, NHN subsidiaries, which numbered 84 in 2021, fell to 65 as of last year, a decrease of about 23%.
The union added, "Just last week, NHN Bugs was sold, and the workers there faced job insecurity," and said, "Under the management strategy of 'selection and concentration,' workers who have dedicated themselves for years are being treated as interchangeable resources."
NHN sold its first-generation music platform subsidiary NHN Bugs, in which it had been the largest shareholder, on the 16th. At the time, NHN explained that it decided on the sale to streamline management through "selection and concentration" in its content business and in consideration of synergy with its core businesses.
The union went on to claim that although NHN Edu ended its "I'm School" service last year, only around 10% of the staff settled into new roles through reassignment. It added, "Management plans to ask employees who have not completed reassignment by Mar. to resign, offering three months of pay."
The union demanded that management halt restructuring and workforce reductions, prepare substantive measures for group-level employment succession, improve reassignment procedures, and establish a job security system.
Lee Dong-gyo, head of the NHN union chapter, said, "We have requested that NHN and NHN Edu form a consultative body for job security," and said, "If management does not respond, we will continue to bring the issue into the public eye through rallies and other actions."
Regarding the union's claims, an NHN official said, "NHN Edu and NHN headquarters are communicating actively and continuing sincere efforts for reassignment within the group," and said, "In the process, we will communicate fully with employees and strictly comply with applicable laws and regulations."