Race among Korean platform players to win over software recruits turning pricy

Tech and platform companies in South Korea are vying fiercely over programmers and developers, with big players promising long-term benefits and stock rewards to keep them while up-and-coming ventures try to steal them away with bonus checks nearing $1 million plus other ingenious options.

Korea’s biggest game developer Nexon Co. announced on Feb. 1 to raise the starting annual salary for fresh employees to 50 million won ($44,621) for software position and 45 million won for other job this year. The annual pay of all current staff was also raised by 8 million won.

Another leading game developer Netmarble Corp. soon matched and went further by offering 100,000 won in welfare points to its employees every month.

NCSoft Corp. – the last among the country’s game trio – is expected to come up with own incentive program in March or April.

Kosdaq-listed mobile game publisher Com2uS Corp. and Gamevil Inc. bumped up annual salary by 8 million won on average depending on employer performance, capacity, and position. Mid-tier game publisher Krafton Inc. known for hit online multiplayer shooting game PlayerUnknown’s Battlegrounds raised annual salary by 20 million won for developers and 15 million won for non-developers.

The announcement was made by Kim Chang-han, chief executive of Krafton, on Thursday, in a live talk with employees through its in-house communication program. Rookie developers will also receive 60 million won as starting annual salary and non-developers 50 million won.

“We are shifting focus from project-based organization to [raising] talented professionals,” he said.

Developers are getting special treatment not only in the game publishing industry but other industry sectors. Companies like Coupang, Big Hit Entertainment, and Toss are also in the battle and are vying to recruit software developers.

Developers in the past worked on project basis rather than as regular employees. Companies, however, are now trying to keep them longer and committed.

Up-and-coming ventures are most aggressive. Toss, fintech readying online banking and securities business, promises experienced engineers 50 percent more than they get at current workplace plus a stock option of up to 100 million won. Zigbang, real estate platform, offerings starting bonus of 60 million won and experienced workers a year’s advanced pay as a bonus.

Industry leaders Kakao Corp. and Naver Corp. are busy defending their employees.

Kim Beom-su, chairman of Kakao, operator of Korea’s most popular messenger app Kakao Talk, on Thursday vowed to improve overall treatment amid complaints over tight compensation despite sharp growth in revenue and operating income.

“I believe the best professionals should be best treated,” he said. “There may be some shortages at Kakao now but I am hoping that the company becomes one of the companies in the industry that offers big compensation.”

Kim offered to improve compensation if the system is worse than other rivals, but time will be needed for long-term change, he said.

Lee Hae-jin, founder and global investment officer at Naver, and chief executive Han Seong-sook also had an online pep talk with employees on Thursday, pledging overall improvement in compensation system.

They highlighted long-term compensation program and stock options.

Employees that were given stock options in 2019 will be able to exercise rights this month. Employees that received even little shares back then would be able to make more than 19 million won in profit, Naver said.

“We will create a differentiated, new welfare system that goes with new global movement to offer best in the industry,” Han said.

[ㄏ Maeil Business Newspaper & mk.co.kr, All rights reserved]