The information technology (IT) and gaming segment no longer is the untouched realm for South Korea’s hard-line union power as workers increasingly organize unions and join umbrella groups to correct overworked and underpaid environment.

AhnLab Inc., an information security solutions and services provider, became the first IT company in the country to form a labor union and join the Federation of Korea Trade Unions (FKTU), one of two umbrella union groups in Korea.

Entering this year, employees at the country’s biggest portal operator Naver Corp., largest gaming company Nexon Co., leading mobile messenger app operator Kakao Corp. and major game developer Smilegate have founded their unions.

The union at Naver that was launched in April and became the first IT company to join the Korean Confederation of Trade Unions (KCTU), the more militant and political union group notorious for organizing nationwide strikes to see through demands. The house union which reportedly has rounded up 1,000 members is campaigning 8,000-odd employees of the internet giant and umbrella companies to join up.

The Korean IT and gaming sector which had flourished under flexible and liberal labor conditions inevitably would confront disruptions as unions come under majority decision from the higher combative umbrella groups such as general strike rather than counting in the conditions of individual workplace. About 3,000 workers in the Korean IT and gaming industries are known to have become unionized.

The ominous signs already show.

AhnLab in September announced a plan to spin off its service unit to speed up decision-making process but withdrew the plan three weeks later due to mounting opposition from its union workers.

Kakao also is faced with strong opposition from its unionized workers on its plan to demerge its e-commerce unit. Its labor union is insisting that the spinoff would lead to job loss.

Naver has also failed to settle collective bargaining terms despite holding meetings for 11 times this year.

Combative union presence that has led to high wages, low productivity, and rigid labor terms has long been cited as the biggest handicap in the Korean market and competitiveness.

Union activities gained ground after progressive and pro-union Democratic Party redeemed ruling power for the first time in nearly a decade upon the victory of President Moon Jae-in in a snap election in May last year.

The labor unions at Korea’s biggest car makers - Hyundai Motor Co. and its sister company Kia Motors Corp. - had staged walkout protests during the negotiations over wages with management nearly every year in the past three decades, causing sizable losses at the companies in recent years. Normalization of GM Korea also has been stalled due to protest by the union over a spinoff plan.

By Lee Dong-in and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]