KRAFTON, which surpassed 1 trillion won in operating profit and 2 trillion won in sales last year with its representative intellectual property (IP) Battlegrounds, has been reported to have received corrective actions from the Ministry of Employment and Labor multiple times for not paying workers on time or for not compensating them according to the hours worked.
According to KRAFTON's business report from last year on the 2nd, KRAFTON's headquarters and subsidiaries received a total of 11 penalties from government and public organizations between 2022 and the end of last year. Excluding cases related to violations of personal information processing laws, about 9 of those were related to employment and wage issues.
In September of last year, KRAFTON's software development subsidiary, 'Over There Korea,' was found to have not paid two employees the allowance for unused annual leave. Under current labor laws, employees who do not use all their annual leave within a year are entitled to receive the unused annual leave allowance.
KRAFTON's game development company, 'Bluehole Studio,' received a corrective directive last February for not paying wages to a former employee. According to current law, a company must pay the final salary, severance pay, bonuses, and allowance for unused annual leave within 14 days after an employee resigns.
Most recently, in December of last year, KRAFTON's creative studio, 'Flyaway Games,' was criticized by the Ministry of Employment and Labor for not reflecting the allowance for unused annual and compensatory leave in the company's contributions to the defined contribution (DC) retirement pension for two employees.
KRAFTON stated in its business report, 'We have completed the implementation of the measures related to the above sanctions and are striving to prevent recurrence by strengthening management of compliance with laws and regulations.'
KRAFTON achieved its largest-ever performance last year with sales of 2.7098 trillion won and operating profit of 1.1825 trillion won.