"Violation of Market Logic" vs "Book Ecosystem Collapsing" Controversy Over Book Fixed Price System Amendment

Novelist Han Kang Criticizes Government's Book Price Regulation Amendment
Government: "Maintaining Current System Is Basic Position"
Experts: "Not Beneficial to Publishing Industry in the Long Term"

On the 6th, novelist Han Kang criticized the government's revision of the book fixed price system at the underground auditorium of the Korea Publishers Association in Mapo-gu, Seoul, reigniting the controversy over the book fixed price system. The photo shows novelist Han Kang speaking at the event "A Discussion on the Book Fixed Price System with Han Kang and Park Jun." Photo by Yonhap News.

[Asia Economy reporters Seunggon Han and Seulgi Kim] Novelist Han Kang, who won the Man Booker Prize?the world's first global literary award in Asia?for her novel The Vegetarian, has reignited controversy over the book price stabilization system by criticizing the government's revision plan. Meanwhile, some argue that market logic should be applied to the book and publishing market just like other markets. In response to the controversy, the government stated that its basic position is to maintain the current system related to the book price stabilization system.

On the 6th, novelist Han Kang, along with poet Park Jun, spoke at the auditorium of the Korea Publishers Association in Mapo-gu, Seoul, during the event titled "A Talk on the Book Price Stabilization System with Han Kang and Park Jun." Han emphasized, "If the book price stabilization system is revised, it might be good for a very short time. It would allow clearing out book inventory and buying books cheaply, but such a feast will soon pass, and without realizing it, we will experience the death of small publishers and over 20,000 books that could have been born."

Poet Park Jun criticized the government's revision plan by saying, "If publishing culture is like a forest, in the space where the forest exists, an ecosystem is maintained through good-natured competition within the culture. It is not just survival of the fittest or the law of the jungle. The forest organically consists of top predators, herbivores, and smaller creatures."

The book price stabilization system is a policy that prevents price competition for books to avoid the contraction of high-quality academic and literary publications. It requires bookstores to sell books at prices set by publishers. It was implemented in 2003 under the 'Publishing Culture Industry Promotion Act' and was revised in 2014 to allow discounts of up to 10% off the list price for all types of books.

However, the system has been criticized for hindering free price competition based on supply and demand and not guaranteeing consumers a wide range of choices.

On the 15th of last month, the consumer policy watchdog Consumer Watch criticized, "We hope the outdated book price stabilization system will be abolished so that consumers can have opportunities to choose and consume at various price points." They added, "The government aimed to protect cultural products and the publishing ecosystem through the system, but from the consumer's perspective, the right to choose was not protected."

A quiet scene at a bookstore in Daejeon.
Photo by Yonhap News

Contrary to the basic purpose of encouraging the publication of diverse books by preventing price competition through the book price stabilization system, issues regarding consumer choice have surfaced, intensifying conflicts between the Ministry of Culture, Sports and Tourism and the publishing industry.

The Ministry of Culture, Sports and Tourism (MCST) formed a public-private consultative body last July, including representatives from the publishing industry, electronic publishing, distribution, and consumer groups, and held 16 meetings until June to organize key issues related to revising the book price stabilization system. However, conflicts with the publishing industry became apparent when the MCST held a public debate on improving the system.

At that time, the MCST said the debate was held to hear various stakeholders' opinions on the system, but the publishing industry and others refused to attend, calling it an act that disregarded previous discussions and procedures.

In August, the Korea Publishers Association expressed deep concern, stating, "The MCST seems to be trying to nullify the publishing industry's arduous efforts to supplement and improve the revised book price stabilization system since 2017. The system, which has been maintained and developed over 18 years, is a matter of survival, especially for small publishers and local bookstores."

Meanwhile, a public opinion poll showed that consumers tend to support the current book price stabilization system.

According to a survey commissioned by the Korea Publishers Association to the polling agency Realmeter on the 22nd of last month, targeting 6,100 avid readers of Kyobo Bookstore nationwide, about 59.2% of 1,000 respondents agreed with the basic purpose of the book price stabilization system.

There were also responses indicating that the system helps readers' reading environment and choice. According to the survey, 56.6% of respondents said the system helped increase new publications, and 41.6% said it helped increase local bookstores.

Experts predict that the book price stabilization system will not have a positive impact on the book and publishing market in the long term.

Professor Kim Taegi of Dankook University's Department of Economics explained, "While it is necessary for the government to support the book and publishing market as part of cultural projects, direct support such as setting prices will not have a positive effect on the publishing industry in the long run."

He added, "The book price stabilization system is an outdated policy. It was created in an era centered on offline sales and should not be applied in the current era centered on online sales. Prices should be left to the market principles of supply and demand, and the government can provide indirect support such as vouchers."

Meanwhile, on the 7th, at the National Assembly's Culture, Sports and Tourism Committee's audit, Minister of Culture, Sports and Tourism Park Yang-woo responded to questions about the book price stabilization system by saying, "Basically, we proceed based on what the public-private consultative body has prepared," and added, "There is a process of listening to user opinions through public petitions, but maintaining the book price stabilization system is the basic stance."

This content was produced with the assistance of AI translation services.