[The Editors' Verdict] Expensive Book Prices: The Book Fixed Price System Is Not the Only Cause

The Biggest Reason for Public Opposition Is Book Price Increase
Allow Price Adjustment for Books Published Over a Year Ago
Productive Discussions on Revision Should Take Place This November

The Korea Publication Culture Industry Promotion Agency held a public forum on the improvement direction of the Book Fixed Price System on the 14th in Mapo-gu, Seoul. The on-site video was live-streamed on the Korea Publication Culture Industry Promotion Agency's YouTube channel. During the forum, the YouTube comment section was flooded with demands to abolish the Book Fixed Price System. The comment section became most heated when the results of the current book evaluation system survey were revealed.

The survey results showed that 46.2% of readers (buyers) responded positively to the current Book Fixed Price System, overwhelmingly surpassing the 22.1% negative evaluation rate. This indicated that consumers also positively evaluate the Book Fixed Price System. The survey was conducted last year among 1,029 men and women nationwide who purchased at least one print book and one e-book each. Although the positive evaluation rate among readers was lower compared to authors (55.6%), publishers (67.4%), and bookstores (60.5%), it showed a significant temperature difference from the calls for abolition in the comment section. Posts condemning the survey results as unreliable continued in the comment section. This is a common scene repeated in articles or social networking services (SNS) reflecting recent survey results that positively evaluate the Book Fixed Price System.

The biggest reason the public opposes the Book Fixed Price System seems to be the belief that the system has made book prices expensive. This is because the current Book Fixed Price System limits discounts to only up to 10% of the fixed price. However, through price readjustment that adjusts the fixed price itself, substantial discounts on book prices are effectively possible.

In February, Gim Youngsa lowered the original fixed price of Haruki Murakami's essay "Goyangireul Beorida" (Throwing Away the Cat), which was originally 13,000 won, to half, 6,500 won. Based on the readjusted fixed price of 6,500 won, the maximum 10% discount (650 won) allowed under the Book Fixed Price System was applied, selling the book at 5,850 won. As a result, thanks to the publisher lowering the fixed price, consumers were able to purchase the book at a price 55% cheaper than the original fixed price.

The current Book Fixed Price System allows the fixed price to be readjusted for books published over a year ago. "Goyangireul Beorida" was published in October 2020, making it eligible for fixed price readjustment. In other words, even if the Book Fixed Price System limits the discount to only 10%, if the publisher is willing, they can adjust the fixed price and supply books to consumers at a lower price as much as they want.

According to publishing insiders, when the Book Fixed Price System was revised in 2020, there was a consensus to actively utilize price readjustment because the 10% discount limit led to the perception that the Book Fixed Price System was the cause of expensive book prices. However, in reality, price reductions through readjustment have not been widely implemented. This is because the costs of raw materials such as ink and paper have risen significantly, and lowering the fixed price itself is unlikely to bring significant profits to either publishers or bookstores. There were also concerns that low-price sales could damage the publisher's brand image. A publishing company official said, "Rather than lowering the fixed price, we preferred to discard unsold books."

The Book Fixed Price System is revised every three years. Since various stakeholders in publishing are deeply involved, and there are many issues to be addressed such as neighborhood bookstores and the value of books as public goods, controversies arise every time the system is revised. This year, with the revision deadline in November approaching, signs of past controversies reemerging are appearing. Sufficient discussion and collection of opinions should be conducted to achieve the best outcome. However, if discussions are based solely on the premise that book prices are expensive because of the Book Fixed Price System, productive revisions seem difficult to achieve.