Wemade workers form union as Chinese capital prepares to become largest shareholder

  • Wemade workers formed a union opposing restructuring and layoffs tied to shareholder changes.
  • 40.25% will make Chinese capital Wemade’s largest shareholder after the transaction.
  • October 30 is the planned deadline for payment and regulatory approvals.

Workers at Wemade, a major South Korean game company, have established a union as management control is set to pass to Chinese capital. The company, known for The Legend of Mir and ranked among South Korea’s top 10 game companies, will have a new branch under the Korean Confederation of Trade Unions Chemical, Textile, and Food Workers’ Union. The union plans to use collective bargaining, negotiations between workers and management, to oppose restructuring and layoffs linked to changes in major shareholders and organizational restructuring. It also seeks safeguards against unilateral deterioration in working conditions, changes to the performance-based pay system, advance consultation on major business decisions, and employment succession and organizational continuity for key units including the Wemix division. Wemade founder and chairman Park Kwan-ho agreed in late June to sell all of his 39.33% stake to Hong Kong-based investment firm NeoPulse. Together with existing holdings, Chinese capital is set to raise its stake to 40.25% and become Wemade’s largest shareholder. The parties plan to complete the remaining payment and regulatory approval procedures by October 30, finalizing the change in major shareholder status.

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