[비즈한국] Serialized writers at Kakao035720 Entertainment are asserting their status as employees under the Trade Union Act and demanding collective bargaining. The Webtoon Writers Union, to which they belong, submitted a request for collective bargaining on wages and working conditions to Kakao Entertainment last month. With Kakao Entertainment refusing to negotiate on the grounds that “webtoon writers cannot be considered employees under the Trade Union Act,” the union plans to clarify the company’s obligation to bargain by filing for relief with the Labor Relations Commission.
This marks the first instance of writers attempting collective bargaining against an individual webtoon platform. While the timing of the negotiations had been under coordination since the end of last year, the process gained momentum following rumors of a potential “sale” of Kakao Entertainment. The move is drawing attention as it could impact industry-wide contracting practices and profit-sharing structures, though there is still a long road to meaningful progress. Can collective bargaining between platforms and webtoon writers truly be realized?
Filing for Relief from Unfair Labor Practices Against ‘Refusing to Negotiate’ Kakao Entertainment in July
The Webtoon Writers Union views Kakao Entertainment's refusal to bargain as an unfair labor practice and plans to submit a relief application to the regional Labor Relations Commission within July. Under the Trade Union Act, applications for relief against unfair labor practices must be filed within three months. Based on June 16, the date Kakao Entertainment expressed its refusal to negotiate, the union is eligible to file until the 17th of next month.
The writers argue that agreements reached through the Webtoon Win-Win Consultative Body are limited in terms of enforceability and specificity, and they intend to resolve specific issues at the bargaining table with the platform. Conversely, Kakao Entertainment maintains a firm stance that webtoon writers are not employees under the Labor Union Act.
Ha Shin-ah, head of the Webtoon Writers Union, stated, “For a win-win agreement to be enforceable, specific details must be determined, which is not the case at present. Even during the discussions for the standard contract, writers made concessions due to the platforms’ concerns about exposing trade secrets, with the understanding that these would be resolved in future negotiations.”
The union claims that while profit settlement information is relatively detailed in the agreement, the promised information has not been fully disclosed. Ha explained, “Items such as ‘striving to foster diverse comics’ lacked specific methods from the beginning. As it is deeply related to creating a creative environment, this part needs to be discussed with the union through negotiations with each platform.”
Previously, the Ministry of Culture, Sports and Tourism signed an ‘Agreement for Creating a Win-Win Environment for the Webtoon Ecosystem’ at the end of 2022 and enacted/amended eight types of standard contracts last June. In the meantime, Kakao has taken steps to implement the agreement, such as disclosing revenue-related information and applying specific clauses to contracts to guarantee the right to take a hiatus for creator welfare (a 2-episode hiatus for every minimum of 40 episodes serialized).
Negotiations Intensify After Sale Rumors: Demanding ‘Guaranteed Renegotiation of Secondary Copyrights’
Rumors of a Kakao Entertainment sale served as a catalyst for intensifying the negotiations. This is why the union is demanding the right to fully renegotiate ‘secondary copyright’ (derivative work rights) in the event of a company sale. Last month, it was reported that Kakao had conveyed its intention to sell management rights to major shareholders of Kakao Entertainment, such as Anchor Equity Partners and the Government of Singapore Investment Corporation (GIC), fueling the sale rumors. Analysts suggest that while Kakao Entertainment is one of the core subsidiaries in the content sector, the strategy shift stems from persistent poor performance and difficulties in pursuing an Initial Public Offering (IPO).
Immediately after the sale rumors surfaced, Kakao disclosed that it was “reviewing various options with the other company's shareholders, but nothing has been decided yet.” On the 8th, the company re-disclosed that it is “reviewing various avenues, including changes to some shareholder compositions, but nothing has been finalized.” Since the possibility of stake sales or adjustments was explicitly mentioned, scenarios involving ownership restructuring or attracting new investors are being discussed.
Ha emphasized, “If a sale proceeds, we will demand the right to renegotiate the terms regarding secondary copyright,” adding, “If a private equity fund focused on maximizing profits enters, there is a possibility that the business will focus on short-term profit generation rather than consistent long-term development. A control mechanism is necessary to protect the writers and their works.”
In the webtoon and web novel industry, unfair practices where platforms or production companies (CPs) restrict secondary copyright rights have long been criticized. Under copyright law, creating dramas or movies requires the consent of the original creator; however, because unfair contracts were repeatedly signed, the Fair Trade Commission (FTC) issued mass corrective orders starting with webtoon platforms in 2018 and focusing on production companies this year.
Complex Legal and Practical Issues: Will Collective Bargaining Be Realized?
The problem is the feasibility of collective bargaining. It is frequent for platforms and independent contractors (or special employment workers) to be denied recognition even after forming legal unions due to employers refusing to negotiate. Particularly given the nature of webtoon writers, who often hold their own copyrights and sign outsourcing contracts with production companies, legal and practical issues beyond union formation are intertwined. Experts evaluate that the key to securing actual bargaining rights lies in proving worker status through administrative procedures and clarifying the platform’s liability as an employer.
The biggest point of contention is whether they can be considered employees under the Trade Union Act. A Kakao official stated, “According to our legal review, we do not believe that webtoon writers fall under the category of employees as defined by the Labor Union Act.”
The Webtoon Writers Union is an independent union that received authorization for establishment from the Seoul Metropolitan Government on December 17, 2020. Kim Nam-seok, an attorney specializing in labor law, noted, “Because they have received a union establishment certificate, their status as employees under the Labor Union Act can be considered recognized to some extent,” adding, “Next, it must be determined who the employer is in practice. If there is a direct contractual relationship, the specific points of contention will be whether they provide labor in a subordinate position and receive wages, or if they should be viewed as self-employed entrepreneurs.”
The union plans to proceed with the Labor Relations Commission relief application centered on writers who have direct contracts with Kakao Entertainment to prove the labor-management relationship, and then discuss the treatment of writers who contracted through production companies as well.
Whether employer status can be recognized even without a direct contractual relationship is also a matter to be examined legally. Kim mentioned, “There are precedents where someone can be a party to negotiations even in such cases. If the production company in the middle has no opportunity or authority to actually determine the right to take a hiatus or working conditions, and must follow what the platform mandates, Kakao could be considered the de facto employer.”
The industry finds the writers’ demand for bargaining burdensome. Given the basic freelance nature of the market, the diversity in writers’ income structures, contract methods, and work patterns makes it a difficult issue to address simultaneously under a labor-management framework. Because serialization methods, levels of editorial intervention, and payment structures vary significantly from writer to writer, there may be operational burdens if all writers must be treated as a single bargaining unit.
As such, there is a view that the nature of webtoon labor, the resulting creative works, copyrights, and the rights of creators must be fully examined. Since most creators have worked as freelancers or individual entrepreneurs, whether the worker status of webtoon writers working based on platforms is recognized will likely have a significant impact on the industry as a whole. A Kakao Entertainment official stated, “If a complaint is filed with the Labor Relations Commission, we plan to explain our position in good faith.”