Following recent allegations of unfair labor practices reported by Anime News Network on November 5, WEBTOON Entertainment has issued an official response disputing the claims made by the WEBTOON Creators Union regarding unpaid work and the company’s contract policies.
In a statement to ANN, Kiel Hume, Vice President and Head of Global Communications at WEBTOON Entertainment, clarified that the allegations “refer exclusively to Naver WEBTOON in Korea” and do not involve the company’s U.S. operations. Hume also emphasized that WEBTOON creators are independent contractors, not company employees, and that the concerns raised relate to contest-based agreements rather than formal employment.
“Contracting is immediate for contest winners,” Hume said. “For works proceeding to official serialization, we request three manuscript episodes. Although extremely rare, even if serialization does not proceed, we compensate the creators for the work produced. Claims of unpaid labor are, therefore, inappropriate and untrue.”
However, several creators who spoke with the union told a different story. According to their accounts, contest winners are sometimes required to produce three to eight full episodes without payment before signing official contracts, during which they may also be asked to repeatedly refine their storylines and designs. Some described the revision process as lasting 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.”
Dispute Over IP Rights and AI Use
WEBTOON also denied allegations that its contracts allow the company to use creator works for AI training or to retain partial intellectual property rights.
“Creators maintain full rights to their underlying IP, and we do not train AI on creators’ content,” Hume stated.
In contrast, the WEBTOON Creators Union shared translated excerpts from a Naver WEBTOON contract suggesting that the company may use creator content for “research purposes,” including data projects conducted internally or with affiliates and universities. Union head Shin-a Ha expressed concern that this language effectively permits WEBTOON to use creator works for AI training without limitation.
These concerns come amid growing scrutiny of AI integration within the company. Earlier this year, Kim Dae-sik, WEBTOON’s AI and Data Lead, told Korea JoongAng Daily that the company was working to “fully incorporate AI into the fundamentals of the company,” highlighting tools like AI Painter, ToonRadar, and AI-driven curation systems.
Concerns Over Exclusivity and Revenue Transparency
The union also alleged that some WEBTOON contracts restrict creators from collaborating with other agencies or pursuing external creative projects without prior approval. Hume dismissed this interpretation as “a misunderstanding.”
“There is no obligation to inform the platform,” he explained. “Signing a management contract is 100% the author’s choice. Exclusivity is common in the industry, and commission fees are always disclosed and tailored to support the creator’s ambitions.”
Creators have also raised concerns about revenue transparency, claiming that Naver WEBTOON takes up to 70–90% of overseas profits and provides limited visibility into metrics such as readership and ad spending.
“Even with global success, we see very little return,” one anonymous creator said. “Naver benefits from our creativity while withholding business information and refusing to improve its revenue-sharing model.”
WEBTOON rejected this claim, calling the cited percentages “inaccurate and unrepresentative” of its actual revenue structure. The company maintains that its systems have allowed creators to view real-time sales and transparent payment records since 2012.
As South Korea’s largest webcomic platform, Naver WEBTOON continues to face heightened scrutiny following these allegations, which surfaced during the country’s annual National Assembly audit. While the union pushes for clearer terms and fairer treatment, WEBTOON maintains that its practices remain transparent and fair to creators.
Source: ANN
