Ministry of Culture Maintains Current Framework of Book Price Stabilization System... Eases Repricing Criteria

On the 27th, as the summer monsoon continues, citizens visiting Kyobo Bookstore Gwanghwamun branch in Jongno-gu, Seoul, are reading books. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Park Byung-hee] The Ministry of Culture, Sports and Tourism announced on the 3rd that it has decided on the direction for revising the Book Fixed Price System ahead of the three-year periodic review deadline (November 20).

The Book Fixed Price System was first implemented in February 2003 and has been revised several times. The current system is based on the 2014 revision. Major points of the 2014 revision include adjusting the maximum discount rate from 19% to 15%, expanding application to books published over 18 months ago and allowing price re-fixing, and applying the system to cases where libraries and similar institutions purchase publications.

The Book Fixed Price System requires publishers to display a fixed price on publications intended for sale (mandatory fixed price display), and sellers to sell at the fixed price set by the publisher (mandatory fixed price sale). However, to promote reading and protect consumers, sellers may freely combine price discounts and economic benefits within 15% of the fixed price.

The Ministry of Culture, Sports and Tourism must review the Book Fixed Price System every three years, with the next deadline on November 20. Considering the positive effects the system has had on the publishing industry ecosystem, the Ministry plans to maintain the overall framework as is while adjusting details to reflect changes in the publishing market. They also intend to continue discussions to establish more reasonable applications of the system in the rapidly changing electronic publishing market.

Regarding this revision, the Ministry first announced that the criteria for allowing price changes will be relaxed from the current 18 months to 12 months to activate the price change system. In the future, they plan to link this with the integrated publishing distribution network to make it easier for publishers to change fixed prices. Additionally, by utilizing the price re-fixing system, they plan to hold price reduction events such as a tentative 'Price Re-fixing Festival' together with the publishing industry to provide consumers opportunities to purchase various quality books at affordable prices.

When the state, local governments, public institutions, and public libraries purchase books, only price discounts up to 10% of the fixed price without separate economic benefits such as goods or mileage will be allowed. This is intended to create a foundation where local bookstores, which have relatively less room for discounts and find it difficult to provide economic benefits, can compete equally with large and online bookstores in public tenders.

Furthermore, fines will be imposed differentially according to the number of violations of the mandatory fixed price sale. Previously, the same amount of fine was imposed regardless of the number of violations, but now higher-tier fines will be imposed for repeated violations to eradicate repeated offenses and ensure the effectiveness of the system.

In addition, the mandatory fixed price display will be applied flexibly to electronic publications. When selling electronic publications such as webtoons using electronic currencies like cash or coins, the fixed price in Korean won (e.g., ownership 100 won) should be displayed in a location easily found by consumers, such as the work information section. However, the exchange rate between electronic currency and Korean won (e.g., 1 cash = 100 won) must be clearly indicated so that consumers can recognize the fixed price.

The Ministry stated that to establish application measures of the Book Fixed Price System considering the characteristics of the electronic publishing market, they will conduct sufficient research and surveys on the electronic publishing market over time and collect opinions from consumers who frequently read electronic publications and related industries.

The revision of the Book Fixed Price System will be finalized after future discussions in the National Assembly.

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