[Book View] "Corporation" Seoul International Book Fair, Unresolved Suspicions of Privatization

Korean Publishers Association and Book Fair Reject Forum Proposal
Publishing Industry Protests "Unilateral Actions"
70% Individual Shareholding... Growing Suspicion

The Seoul International Book Fair is currently facing turmoil over its management structure. After a conflict with the Ministry of Culture, Sports and Tourism stemming from suspicions of unreported profits in 2023, the fair is now struggling to secure approximately 700 million won in government subsidies. At the center of the controversy is the decision by the board of the Korean Publishers Association to convert the book fair into a corporation.

Last year, visitors were touring the publishing booths at the Seoul International Book Fair held at COEX in Gangnam. Photo by Yonhap News

In December 2023, the board of the Korean Publishers Association approved the establishment of "Seoul International Book Fair Co., Ltd." Both the association and the fair's organizers explained, "We considered establishing a non-profit corporation or a foundation, but such structures would have required approval from the Ministry of Culture, Sports and Tourism, which we deemed virtually impossible under the circumstances of conflict." Currently, the capital of Seoul International Book Fair Co., Ltd. stands at 1 billion won. The Korean Publishers Association, which contributed the trademark rights as a non-cash asset, holds a 30% stake. The remaining 70% is divided among Saipyungnon (represented by Yoon Chulho, also president of the association) and Nowon Bookstore (represented by Tak Mugwon), each holding 30%, with several other publishers sharing the remaining 10%.

This structure has sparked strong backlash from some in the publishing industry, who argue that "the fact that individuals outside the association hold 70% of the shares effectively privatizes the book fair." Critics claim this undermines the public value that the publishing community has built through solidarity since 1954. Nine organizations, including the Writers Association of Korea and the Korean Publishers Society, have formed the "Alliance for Public Value in the Reading Ecosystem" and launched collective action opposing the privatization of the fair. The association and the fair's organizers responded, "We held two rounds of public shareholder recruitment but failed to reach our target of 2 billion won, making the corporate structure an unavoidable choice." They also emphasized, "Even if there is a future capital increase, the association's 30% stake is protected in the articles of incorporation and will not be diluted, and there are no plans to distribute profits." They maintain that, while the fair is now a corporation, there is no intention to privatize it.

However, suspicions remain unresolved. On April 30, the Alliance for Public Value in the Reading Ecosystem proposed a public discussion to restore the fair's public character, but the association and the fair's organizers refused to attend the forum. According to the alliance, on May 20, the organizers unilaterally announced a plan to increase capital by 1 billion won without any dialogue.

The association explains that the capital increase could dilute individual stakes, but the alliance argues that small shareholders alone cannot prevent privatization and that a major shareholder with public credentials is needed, which is not realistically feasible. One publishing industry insider commented, "They keep asking us to trust their intentions while refusing dialogue and acting unilaterally. Who would trust that? The articles of incorporation can be changed at any time, and they are not a legally binding safeguard."

In the past, during a dispute with the Ministry of Culture, Sports and Tourism over the integrated publishing information system, the association rejected the ministry's request to trust their promise to transfer operating rights once the system was established, saying, "We cannot trust that promise." Now, the association is demanding unconditional trust from the very publishing community it represents, which seems hypocritical. Isn't it only natural to respond to the voices in the publishing industry calling for a proper process?