2. Reason for proposal
The current law stipulates that when a publishing company produces a publication for sale, the price at which the publication is sold to consumers (hereinafter referred to as the "list price") must be set and indicated on the publication as prescribed by the Presidential Decree, and those selling the publication must sell it at the list price.
However, the same regulation has been applied to webtoons and web novels, whose production and distribution structures are different from those of traditional publications, causing inconvenience to the industry and consumers alike. Therefore, the revision is designed to promote the relevant industry while increasing the consumers' welfare by enabling such publications to be marketed in various ways, except for the application of the regulation that require webtoons and web novels to be sold at the list price.
In addition, the revision is designed to protect their creators and establish the distribution order in the industry by inserting a new provision that prohibits those who sell webtoons and web novels from demanding that their authors or publishers, who are the contractual counterparties, bear the costs incurred for sales promotion or price discounts, without advance agreement.
3. Main contents
a. It newly establishes provisions on the definition of web novels (Subparagraph 4-2 of Article 2 of the draft).
b. It adds webtoons and web novels to the list of publications exempted from the list price system (Article 22 (7) 5 of the draft).
c. It newly establishes provision prohibiting those selling web novels or webtoons from passing the cost of sales promotion or price discount on to the author or publisher, the counterparty to the contract, without advance agreement (Article 23 (1) 3 of the draft)
d. It provides that, in the event of a violation of Article 23 (1) 3, the Fair Trade Commission may be requested to investigate and take action (Article 23 (5) and Article 23 (6) of the draft).
e. It inserts provisions on the imposition of penalties in the case of violations of Article 23 (1) 3, grounds for exceptions, and the entities responsible for imposing penalties (Proviso of Article 28 (1), Article 28 (1) 3, and Article 28 (3) of the draft).
