A petition for the abolishment ‘Fixed Book Price System’ exceeded two-hundred thousand signatures by the November 3rd deadline. The petition was originally intended to save local book stores has continued to decline and it is no longer clear who will benefit from the ordinance.

The ‘Fixed Book Price System’ will force bookstores to sell books at prices set by publishers to prevent overheated competition from decreasing the publication of high quality books in the academic and literary realms. In February 2003, the Publication and Printing Promotion Act was implemented only in online bookstores. From October 20, 2007, books were designated as new within the first 18 months of publication. A maximum 10% discount on new books was allowed in offline bookstores.

In November 2014, the system was reformed to include all kinds of books with only a 10% discount off the fixed price possible. The new rule will come into effect starting on November 21st and set a new discount maximum of 15%. (price discount 10% + indirect discount 5%)

Originally, the ‘Fixed Book Price System’ was meant to be a temporary system. However, the publishing industry and bookstores agreed to keep it in place for three more year. Those opposed to the system argued that, it lead to decreased choices and price benefits for consumers. They also say that many consumers look to online bookstores because of the price is the same.

The law was enacted to save local bookstores but, the number of national bookstores has decreased steadily. According to 「A handbook of Korea Bookstores in 2018」, the number of national bookstores stands at 2,050, a decrease of 36.9% from 10 years ago. Additionally, 4 out of 10 publishers saw sales decline, while 1 out of 5 publishers recorded operation deficit.

Professor of Library and Information Science, Hee-Yoon Yoon said, “the fixed book price system is a necessary evil. Despite the necessary justification of saving the publishing industry and the local bookstores, negative ballon effects such as limiting consumers right of choice and increasing revenue of online bookstores in visible. As such, the fixed book price system can’t be a miracle cure that satisfies both publishers, bookstores and consumers”

In the market, books are private goods not public goods, and applying this system is against fair trade so it should be abolished. Nevertheless, if it saves publishers and bookstores it will remain an important means of healthy maintenance of the reading system. Thus, the industry has to seek a third way. The institution market including libraries, public institutions, and organizations apply the complete fixed book price system and the individual consumer market needs to expand the discount rate.”

Meanwhile, those in favor of the system support instituting a ‘Complete Fixed Book Price’ that removes the current 10% discount replaces it with a maximum 5% discount. In France, which has a complete fixed book price system, books are allowed to be sold with no limit on the discount rate 24 months after publishing. In the U.S., 3 types of paper’s quality (hardcover, paperback and mass-market paperback) are published, offering a wide range of price choices for consumers.

L.L.F reporter Seung-Hee Na