Unpaid Labor Allegations Cast Shadow Over Naver WEBTOON's Market Dominance

Naver WEBTOON, South Korea's largest webcomic platform and a publicly listed company in the U.S., has recently found itself in the spotlight for two contrasting reasons: its rising global profile, boosted by a collaboration with Disney, and growing criticism over alleged unfair labor practices raised during South Korea's annual National Assembly audit.

Anime News Network spoke with Shin-a Ha, head of the WEBTOON Creators Union, who testified as a witness during the audit, to discuss the allegations and the power imbalance between the platform and its creators.

Allegations of Unpaid Labor

At the core of the controversy is what the union describes as “unpaid labor.” According to a WEBTOON creator candidate who reported their experience to the union, creators selected through company contests are often required to produce three to eight full episodes before signing an official contract. During this period, they are also asked to refine materials such as storylines and character designs initially submitted for the contest—without any payment.

The revision period, the union said, can last from several months to as long as three years. One artist told ANN, “I went through dozens of revisions. The editors interfered constantly, and even after a year of agreement with my producer, a new supervisor came in and told me to start over.”

Shin-a Ha said some aspiring artists gave up on their careers after years of unpaid work and financial hardship. “There are cases where creators were left without feedback for months after submitting scripts, or even began serialization without ever receiving a formal contract,” she said.

Creators not affiliated with the union shared similar experiences. One artist who has worked across multiple platforms told ANN, “It's common not to be compensated for the development process after winning a contest. Three years is extreme, but there have definitely been cases like that.”

Even after signing a contract, the union argues, creators face restrictive conditions. The union provided ANN with sections of a Naver WEBTOON contract, claiming it allows the company to retain partial intellectual property rights permanently and to use works for AI training without explicit consent.

It also reportedly includes a clause requiring prior approval from the platform before a creator can collaborate with other agencies or engage in creative activities elsewhere. The union added that Naver WEBTOON takes a portion of the compensation when creators give paid lectures or media appearances.

Monopoly Power and Market Dependence

Ha said Naver WEBTOON's ability to impose such terms stems from its near-monopoly in Korea's WEBTOON industry. “It's comparable to Netflix or YouTube in the video industry,” she said. “For a creator to succeed, publishing on Naver WEBTOON is practically essential.”

Some creators have even withdrawn from kakao WEBTOON contests after being scouted by Naver WEBTOON. As a result, Naver WEBTOON largely dictates payment structures, production timelines, and episode lengths.

A 10-year veteran artist told ANN, “Naver essentially controls the market. Other platforms' contests have little influence because most creators simply ignore them. If you want to make it as a professional creator, you have no real alternative.”

Global Revenue and Transparency Concerns

Union representatives also called on global readers to take note of the issue. One creator currently serialized on Naver WEBTOON said anonymously, “Even with global success, we see very little return. In some markets, Naver takes up to 90% of overseas revenue—sometimes 70% at best. Many creators accept it because 10% is still enough to live on. But there's no transparency about how rankings, promotions, or ad spending are managed. We don't know how many people read our work for free or what the actual metrics are. We just take what they give us.”

The creator continued, “Naver benefits from our creativity while withholding business information and refusing to improve its revenue-sharing model. The CEO received around $30 million in cash and stock options after the IPO, while no creator received any comparable incentive.”

Naver WEBTOON's Response

In response to the allegations, a Naver WEBTOON representative who appeared at the National Assembly stated:

“From my understanding, there are currently no cases of non-payment of manuscript fees at the company level. If the pointed-out cases are indeed factual after a thorough review, we will strive to make improvements. Among the various contracts, there are those entered into by the choice of the creator. Since the creator is most important at Naver WEBTOON, we will work harder to ensure that creators can create in a better environment. We are continuing various efforts to foster a creator-centric environment and will work to create a better creative environment.”

While Naver WEBTOON continues to expand its global influence and push the boundaries of digital storytelling, the ongoing debate reveals a widening gap between the platform's commercial success and the creators whose work sustains it.