NHN headquarters. (Photo: NHN)

 

 

[Alpha Biz= Paul Lee] NHN is facing internal backlash from employees as it restructures low-performing affiliates and business units under its strategy of “selection and concentration,” with the company’s labor union claiming workers are being pressured into voluntary resignations.

The NHN branch of the Korean Chemical, Textile, Food and Allied Workers’ Union held a rally on March 4 in front of NHN’s headquarters in Pangyo. The union had previously held a press conference on Feb. 22 calling for job security within NHN Group companies.

The union is demanding the company withdraw plans for layoffs and voluntary retirement programs, participate in a tripartite job security consultation body, make genuine efforts to avoid dismissals while complying with collective agreements, and guarantee employment without layoffs during business restructuring.

NHN has been reorganizing its business portfolio by closing or scaling down non-core businesses such as travel and education platforms. As a result, the number of its affiliates declined from 86 in 2021 to 66 in 2025.

During the restructuring process, the company carried out voluntary retirement programs and internal job transfers for some employees. However, the union claims that the success rate of such transfers is only around 20 percent, based on its own assessment.

Lee Dong-kyo, head of the NHN union branch, criticized the process, saying employees who had already been hired through formal recruitment procedures are being required to resubmit personal statements and portfolios and undergo interviews similar to those for new hires.

According to the union, around 110 employees within NHN Group are currently subject to internal reassignment.

NHN Edu’s I’m School service is scheduled to end in October 2025, after which employees have been undergoing reassignment procedures. In addition, about 70 employees from departments whose game projects—such as NOW and NSC—have been discontinued at NHN headquarters are being asked to seek reassignment.

Labor and management have been discussing the issue through a third-party job security consultation body, with NHN Edu participating on the company’s side. The union, however, is urging NHN’s headquarters to take part directly in the negotiations.

“We are discussing the matter with management through the consultation body,” Lee said. “If our demands are not accepted, we will continue various additional actions.”

NHN said the closure of the I’m School service was unavoidable.

“NHN Edu decided to terminate the service after determining that it was no longer sustainable due to accumulated operating losses and limited growth potential in the education platform market,” the company said. “NHN Edu will continue to communicate with employees throughout the workforce adjustment process while strictly complying with relevant laws and regulations.”

About 100 people, including employees from NHN group companies, participated in the rally. Labor unions from other IT companies—including Hancom, Netmarble and NCSoft—also joined the demonstration in support.

 

 

 

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