Yeah, it's not great. I think my main issue with it is the lack of elaboration on what the contract you have to sign up for actually is, and the fact that they felt the need to hide this information away in small print.
The webtoon defenders are very keen to put their faith in Webtoon not only giving winners a contract with very reasonable terms, but also that Webtoon will happily allow people who turn down the contract to take the smaller payout or to swap places with the next place winner.... and it's not impossible but the problem is there's nothing written saying they'll do either of those things, and so there's absolutely no legal obligation. If they're the kind of people who will hide an important condition in small print like that, its worth holding onto some healthy skepticism that they'd not elect to do something nice that they haven't promised to do just for the sake of being good sports.
With publishers, it's really always best to "Hope for the best, but prepare for the worst." Do not go in and work really hard trying to win if there are reasons you couldn't fulfil the responsibilities of a full time webcomic making job, or even if you don't like the idea of being tied to making the action comic you made for the competition (because it's possible you might have to get a contract to make that exact one. Again, we don't know) full time and putting aside whatever you're already making until it's done, which could well be for the next year, two years or more. Hopefully the terms they offer will be nice, but if they haven't put the terms up front to see, it's safer to assume they're not nice and be pleasantly surprised if it's actually a very creator-friendly contract. For all we know, the contract might treat the prize money as advance pay and leave you unpaid for several months; something which I hope wouldn't be the case, but... you know, it could be because we don't know any of the terms.
Anyone who enters should assume that you are signing up to potentially draw exactly the comic you made for your entry as your full time job for the next few years, just in case, even if winning is unlikely. It's better than being unprepared and putting in all that effort only to get no reward. For people who know what they're getting themselves in for and it sounds great (because yes, for the right person, this is a great opportunity, I'm not trying to say it isn't) then best of luck, I hope you win!