Korea Fair Trade Commission Launches Probe into Webtoon and Web Novel Industry Practices

The Korea Fair Trade Commission has launched a probe into webtoon and web novel industry practices, targeting over 100 companies to investigate fee structures,

Korea Fair Trade Commission Launches Probe into Webtoon and Web Novel Industry Practices

The Korea Fair Trade Commission (KFTC) has announced a comprehensive investigation into the webtoon and web novel sectors, targeting more than 100 companies, including major domestic platforms and content providers. The probe aims to uncover potential anti‑competitive practices, pricing irregularities, and unfair contract terms that may harm creators and consumers.

According to KFTC officials, the investigation will focus on three key areas: platform fee structures, royalty distribution models, and exclusive licensing agreements. “We are committed to ensuring a level playing field for all stakeholders in the digital content ecosystem,” said a spokesperson for the commission.

Major platforms such as Naver Webtoon, KakaoPage, and Daum Webtoon will be among the first to undergo scrutiny. The commission plans to conduct on‑site audits, review internal documents, and interview creators to assess whether current practices comply with the Fair Trade Act.

Industry analysts predict that the probe could lead to significant changes in how webtoon and web novel creators are compensated. Some experts argue that the current fee structures disproportionately favor large platforms, leaving independent artists with limited revenue streams.

In response, several creators’ unions have called for greater transparency and the implementation of standardized contract templates. “We need clear guidelines that protect both creators and consumers,” said a representative from the Korean Webtoon Creators Association.

The KFTC’s initiative follows a global trend of regulatory bodies examining digital content markets. Similar investigations have taken place in Japan, China, and the United States, focusing on platform dominance and content monetization practices.

While the full scope of the investigation remains confidential, the commission has stated that it will publish preliminary findings within the next six months. Stakeholders are advised to prepare for potential adjustments in licensing agreements and royalty calculations.

For creators and companies, the probe presents an opportunity to reassess business models and advocate for fairer industry standards. The KFTC’s actions underscore the growing importance of regulatory oversight in the rapidly evolving digital media landscape.

📰 Originally reported by Animenewsnetwork