Bookplus, the Fourth Largest Publishing Wholesaler in Korea, Files for Bankruptcy
Promissory Notes Worth 500 Million KRW Due by April
Assets Total 3.3 Billion KRW More Than Liabilities
Possibility of Additional Debts Under Investigation
It has been confirmed that Bookplus, a publishing wholesaler experiencing a liquidity crisis, has ultimately filed for bankruptcy in court.
Bookplus is the fourth largest wholesaler following Kyobo Bookstore, Woongjin Booksen, and the Korea Publishing Cooperative, with about 600 clients, so the damage is expected to be considerable.
According to the publishing industry, Bookplus filed for bankruptcy at the Seoul Bankruptcy Court on the 21st. If the bankruptcy is accepted, the debtor's (Bookplus) assets will be assessed and distributed to creditors. According to the books, Bookplus's assets amount to approximately 18.95 billion KRW, which is 3.34 billion KRW more than its liabilities (15.66 billion KRW).
A representative from the Korea Publishers Association explained, "It is understood that Bookplus decided to head toward bankruptcy due to the continuous occurrence of unexpected debts related to the largest shareholder."
This liquidity crisis arose as Mr. A seized the company's main transaction account, sharply worsening cash flow, depending on the court's judgment. The promissory notes that Bookplus must cover by April amount to 450 million KRW. It is also known that there is a high possibility of additional debts.
Bookplus was established in 1998 by Jeon Jae-guk (66), the eldest son of former President Jeon Du-hwan, but Mr. A became the largest shareholder in 2019 through a share sale. However, when combining friendly shares, Jeon's shareholding is higher, and disputes have continued with lawsuits over various company rights. Based on the 2023 audit report, Mr. A holds 32.43%, Libro holds 26.07%, and Jeon Jae-guk holds 19.71%. Jeon Jae-guk is also the largest shareholder of the bookstore Libro.
To respond to Bookplus's bankruptcy filing, the Korea Publishers Association plans to form a creditors' group on the 26th and assess the scale of damage, including the amount owed by each publisher.
Do Jin-ho, Chair of the Distribution Policy Committee of the Korea Publishers Association, said, "We will do our best to minimize the damage."
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