Domestic major game companies' labor unions argue that improving the labor environment by abolishing the comprehensive wage system is necessary. The comprehensive wage system is a wage system that includes allowances for overtime and night work as part of the salary paid in a lump sum. Even if one works additional hours, it is difficult to receive allowances, which has been pointed out as the main cause of poor working conditions in the gaming industry, such as so-called "free overtime." However, it has been noted that the demand from labor unions in the gaming industry, where the average annual salary exceeds 100 million won, sounds like the grumbling of a "noble union."
According to the gaming industry on the 26th, the Democratic Party of Korea "Game Special Committee" held a labor union meeting on the 16th. Representatives from major game companies including Nexon, NCSOFT, WEBZEN, Smilegate, and Kakao Games attended and conveyed their opinions from the field. The unions proposed the abolition of the comprehensive wage system and the introduction of policies to strengthen employment stability through a joint demand proposal. They pointed out that while the comprehensive wage system has been abolished in some major game companies, it still remains in most game companies and their subsidiaries.
Baesu-chan, vice president of Nexon, said, “The abolition of the comprehensive wage system is the most urgent issue,” adding, “Although the comprehensive wage system has been abolished in large game companies, it is applied in a modified form in small and medium-sized enterprises or Nexon subsidiaries such as 'Mint Rocket,' which imposes a heavy burden on workers.” He continued, “The previous government tried to expand flexible working hours while viewing the gaming industry differently, but in reality, even managing the recording of commuting hours for overtime pay has not been implemented.”
The comprehensive wage system, which pays only the predetermined amount for overtime allowances, is a prevalent contract form in the gaming industry. Even if one works beyond the agreed hours, they cannot receive additional allowances due to the predetermined amount, making it a major cause of long hours of work and so-called "free overtime." Particularly, given the characteristics of game companies where working in crunch mode is common, the comprehensive wage system is more favorable to the employers. Crunch mode refers to working intensively during nights and weekends ahead of a new game release or major updates.
Nexon, NCSOFT, and Netmarble abolished the comprehensive wage system and introduced a selective working hours system in 2019. However, according to the Korea Creative Content Agency, the proportion of employees subject to the comprehensive wage system in the gaming industry reached 69.9% last year. Especially among employees in small and medium-sized enterprises with fewer than 50 people, the application rate of the comprehensive wage system exceeded 90%.
An A representative from the gaming industry said, “In 2017, an employee of a large game company died from overwork, and the atmosphere changed as this issue gained attention,” adding, “There was a rising opinion that employees should be protected from overwork, particularly in large game companies, and the comprehensive wage system began the process of full abolition.”
A B representative from the gaming industry noted, “Although there are many claims that large game companies have abolished the comprehensive wage system, in the overall industrial environment, there are still not many workplaces utilizing the non-comprehensive wage system,” adding, “It is also true that particularly medium and small game companies without unions still have the comprehensive wage system widely spread and many cases of employees not receiving proper allowances for long working hours.”
However, criticism arises that such demands are unreasonable given that the average annual salary of gaming industry workers is already high. There are arguments that the demands for improved treatment are excessive amidst the poor conditions in the domestic gaming industry. Last year, three companies, SHIFT UP, KRAFTON, and NCSOFT, reported average employee salaries exceeding 100 million won, at 130 million won, 109 million won, and 107 million won, respectively. Nexon Games and Kakao Games, Nexon's subsidiaries, recorded average employee salaries of 94.8 million won and 88 million won.
Experts say that while the comprehensive wage system that causes excessively long working hours needs to be improved, uniform regulations may lead to side effects. Kim Dae-jong, a professor of business administration at Korea University, stated, “If wage system reforms are made in the current difficult situation for the gaming industry, there is a concern that corporate competitiveness may decrease,” adding, “Particularly in a situation where wage levels are high, the abolition of the comprehensive wage system should be left to corporate autonomy rather than government intervention.”
Professor Kang Seong-jin from Korea University said, “In a situation where the 52-hour workweek system is in place, simply abolishing the comprehensive wage system is not desirable, given the characteristics of the gaming industry that require intensive working periods, like crunch mode.” He continued, “Discussions on the abolition of the comprehensive wage system and on broad-based labor market flexibility policies such as the 52-hour workweek system should be held together.”