Announcement of Standard Contracts in the Web Novel Sector to Foster a Fair Environment(2025.3.20)
- Three standard contracts established: Publishing Rights Agreement, Exclusive Electronic Publishing Rights Agreement, and Serialization Agreement
- Includes clauses on termination rights for automatic renewals, suspension rights, provision of sales-related information, and obligation to explain contract details
On Thursday, March 20, the Ministry of Culture, Sports and Tourism (Minister Yu In-chon, hereinafter referred to as MCST) announced the enactment of three standard contracts for the web novel sector:
① Publishing Rights Agreement,
② Exclusive Electronic Publishing Rights Agreement, and
③ Serialization Agreement.
The MCST, in cooperation with the Korea Fair Trade Commission (Chairperson Han Ki-jeong, hereinafter KFTC), developed these drafts through the “Web Novel Win-Win Council,” which brought together creators, production companies, platforms, academia, and other stakeholders from the web novel ecosystem.
Standard Contracts Established Following 'Win-Win Agreement' Among Creators, Production Companies, Platforms, and Academia
The “Web Novel Win-Win Council,” launched in September 2023 in response to the need for a communication channel among creators, production companies, and platforms, held 12 plenary meetings and pre-meetings with creators. These gatherings discussed key industry issues, such as countermeasures against illegal online distribution of web novels and the development of a standardized web novel identification system, as well as key items to include in the standard contracts.
As a result, in April 2024, a “Win-Win Agreement for Creating a Sustainable Web Novel Ecosystem” was signed by executives from 11 associations and organizations. Following this agreement, the standard contracts were drafted and finalized after collecting feedback from relevant institutions such as the Korea Copyright Commission.
The 11 participating organizations include:
- Creators: Korea Web Novel Writers Union, Korea Web Novel Writers Association, Digital Content Creators Division of the Korean Women Workers Association, Korea Creative Story Writers Association
- Production Companies: Korea Web Novel Industry Association, Korea Web Novel Association, D&C Media
- Platforms: Naver Webtoon, Kakao Entertainment, RIDI Corporation
- Academia: Chungkang College of Cultural Industries
Balancing Field Voices and Creator Rights in the Standard Contract Draft
This draft aims to reflect the voices of the field while protecting the rights of creators. For example, in the case of automatic contract renewals, the obligation for the business entity to give advance notice of termination was excluded due to practical difficulties, while creators were granted the right to terminate. Transparency in revenue sharing is ensured by requiring the inclusion of appropriate sales-related information in the settlement statements. Suspension rights for illness or accidents were also guaranteed, improving the serialization environment for web novel writers.
To promote the adoption of these standard contracts, the MCST plans to give preferential consideration to businesses or organizations that use them when selecting participants for relevant initiatives, such as the web novel translation support project beginning in 2025. A “Guidebook on Standard Contracts in the Web Novel Sector,” explaining the newly adopted clauses and key considerations, will be produced and distributed in the second half of the year.
Additionally, the ministry will continue institutional efforts to foster a fair industry environment, including the submission to the National Assembly of a proposed revision to the “Publishing Industry Promotion Act” to prohibit unfair shifting of promotional and discount costs.
Minister Yu In-chon stated, “Thanks to the efforts of all stakeholders in the web novel ecosystem—including creators, production companies, and platforms—we were able to reach a ‘win-win agreement’ and enact these standard contracts,” adding, “The MCST will do its utmost to ensure the healthy and sustainable growth of the web novel industry, which functions as a core of K-Content and, at times, serves as the source of ‘K-Story’ as it expands globally.