[Publishing Industry Upheaval] ① The Disappearance of the COVID-19 Boom in Publishing... The Shadow of Polarization

Publishing Industry Faces Another Recession... First Half Sales Plummet
Novels Achieve Success Amid Challenges... An Era Where Books Are Means, Not Ends

Editor's NoteThe publishing industry has made efforts to prepare for the special circumstances brought about by COVID-19, but the reality is tough. Although there was a brief recovery, it is once again sinking into the 'swamp of recession.' The difficulties faced by the publishing industry are not new, but they have become more severe amid the worsening economic environment. There is even a growing lament that 'everything that could be tried has already been tried.' Amid this, we diagnose the publishing industry's struggles to overcome hardships in a six-part series.

[Asia Economy Reporter Seo Mideum] The phrase 'the worst recession since Dangun' has been used annually to describe the publishing industry, but the COVID-19 period was an unprecedented special time. Sales of educational books for children and adolescents, who shifted to remote learning, increased significantly, and novels, fantasy, and SF works also saw exceptional sales growth. However, as the COVID-19 momentum waned, the industry fell back into the swamp of recession, prompting lamentations within the publishing sector.

According to the 'Publishing Industry Trends (Second Half of 2021)' report published by the Korea Publication Industry Promotion Agency, the combined sales of nine publicly listed publishing companies in the second half of 2021 amounted to approximately 1.145 trillion KRW, a 3.7% increase compared to the same period the previous year. This figure represents a 1.6% rise compared to the previous quarter.

An employee of a publishing company who requested anonymity explained, "There were definitely factors contributing to the COVID-19 special increase. Especially, children's books sold well," adding, "But as COVID-19 has slowed this year, much of the bubble has burst. We will know for sure when the statistics come out, but the downward trend will be clear." In fact, some children's book publishers experienced their sales halving or dropping by 70% in the second quarter of this year.

The bigger problem is that there is no sign of improvement ahead. The peak season of July and August summer vacations passed relatively quietly, and the outlook is bleak with the World Cup coinciding with the off-season at the end of the year. Kiho Han, director of the Korea Publishing Marketing Research Institute, said, "Publishers are jumping into children and youth books because humanities, social sciences, and science are not doing well, but it feels like related budgets, such as for small libraries, have been significantly cut under the current government. They say it will get worse next year."

The rising cost of paper is also a negative factor for the publishing industry. According to the Ministry of Trade, Industry and Energy, the average price of mixed hardwood pulp from the southern United States, a raw material for paper, was $970 per ton as of June, a 44% increase compared to January. This caused two rounds of paper price hikes in the first half of this year.

Lee Hong, director of HanbitBiz, pointed out, "This situation is nothing new. The real problem is the lack of growth momentum." He added, "After the presidential election, the publishing industry rapidly declined, but Korean novels centered on storytelling were relatively okay. Storytelling-type books seem to have some business opportunities."

In fact, since last year, novels such as Im Ye's 'The Dollar Gut Dream Department Store' (Factory Nine), Kim Hoyeon's 'Uncomfortable Convenience Store' (Chair by the Tree), and Hwang Boreum's 'Welcome to Hyunamdong Bookstore' (Clayhouse) have attracted much reader interest. Additionally, Jeong Sora's novel 'Cursed Rabbit' (Ajac) and Park Sangyoung's 'Love in a Big City' (Changbi) gained renewed attention after being shortlisted for the International Booker Prize in the UK.

Writer Suji Lee became the first Korean to receive the Hans Christian Andersen Award, drawing attention to works such as 'Summer is Coming' and 'Let's Play, Wave' (Biryongso). Son Wonpyeong's novel 'Counterattack at Thirty' (Eunhaengnamu) also attracted attention after ranking first in the translated novel category at the Japanese Bookstore Awards in April last year.

So, what about the bookstore situation? Has the publishing industry's hardship caused significant damage? Not really. The combined sales of major bookstores such as Kyobo, Youngpoong, and Libro reached 934.9 billion KRW last year, setting a record high for the past five years. This is an increase of 100 billion KRW compared to 2020.

Regarding this, Director Lee Hong said, "Distributors (bookstores) display books based on what sells, so the overall pie remains the same," analyzing, "Previously, three publishers did well while the rest broke even or recorded losses, but now more publishers are seeing losses, intensifying polarization."

Is there any solution? Director Lee said, "Now is an era where books are not the goal but a tool. We need to acknowledge the potential of YouTube or video production as tools," explaining, "Rather than vaguely insisting that people must read more books, changes are needed to make it easier for the market and consumers to access them. Emphasizing the absoluteness of books alone is difficult."