The IT Committee of the Korean Chemical, Textile & Food Workers' Union (chaired by Oh Se-yoon) issued a statement on the 15th expressing deep regret over the WEMADE founder's stake sale, warning that it "threatens the loss of IP sovereignty, which undermines the foundation of the Korean game industry."

In its statement, the IT Committee argued that the sale raises the possibility of WEMADE's core intellectual property (IP) falling under the influence of Chinese capital, claiming this event "may be a precursor to a 'post-WEMADE' crisis, rather than an isolated issue for the company alone."

The committee warned that this could mark the "beginning of industrial hollowing out," where not only does the company's governance change, but the Korean game industry's unique ecosystem and technological assets are leaked overseas. Industrial hollowing out refers to the phenomenon where domestic manufacturing bases shrink and employment declines as companies relocate production hubs abroad to cut labor costs or explore new markets.

The IT Committee cited media reports suggesting that Chinese capital already holds significant stakes in major game companies like Webzen and Netmarble, and that Tencent is believed to be exerting influence as the second-largest shareholder in KRAFTON and SHIFT UP.

The committee also criticized the management's attitude during the sale process. It pointed out that there was "zero communication with frontline workers while selling the company's foundational IP," noting that the sale is highly likely to lead to a decline in corporate value and job insecurity, including potential workforce restructuring.

The committee further referenced the case of LocknLock, which the union claims saw its core facilities and technical personnel leaked to China after being acquired by a private equity firm, arguing that "the current series of events in the game industry is a carbon copy of the LocknLock situation in terms of 'overseas technology leakage' and 'devaluation of labor.'"

The committee demanded that the government ensure the effectiveness of the domestic representative designation system under the Game Industry Promotion Act, which took effect on October 23 last year. The IT Committee stated, "Simply designating a legal representative is insufficient to fully protect the rights and interests of workers and users when overseas capital has seized management control," and urged the Ministry of Culture, Sports and Tourism and the Ministry of Employment and Labor to establish a special management and oversight system for companies controlled by foreign capital.

The IT Committee demanded: ▲ Transparent disclosure of the impact of the sale by WEMADE's founder and management, along with measures to ensure job security; ▲ Government establishment of measures to prevent the leakage of core IP and the strengthening of authority to manage and supervise the domestic representative designation system; and ▲ The development of sustainable industry growth strategies in collaboration with workers.

WEMADE previously announced on the 30th of last month that its founder and Chairman of the Board, Park Kwan-ho, had signed a stock purchase agreement (SPA) worth approximately ₩920 billion to sell his entire stake (39.33%) to NeoPulse. NeoPulse is a domestic entity wholly owned by the Hong Kong-based investment firm ShengSong Investment; it will become WEMADE's largest shareholder once the final payment is completed on October 30.