Kakao Entertainment, Naver Webtoon to disclose sales data, improve contracts

Industry

Published: 16 Dec. 2022, 17:57

Kakao Entertainment, Naver Webtoon to disclose sales data, improve contracts

Officials from the Ministry of Culture, Sports and Tourism, the Fair Trade Commission, webtoon companies and creators' associations stand for photo after signing a non-binding agreement at the CKL Business Center in central Seoul, Friday. [YOON SO-YEON]

Kakao Entertainment and Naver Webtoon agreed to disclose sales data and make contracts easier for creators to understand in a non-binding agreement signed between webtoon companies, creators and the government on Friday.

The agreement came from a committee formed by the Ministry of Culture, Sports and Tourism last February in order to create a sustainable webtoon ecosystem as the market continues its rapid growth each year.

Despite webtoons’ popularity, web content companies had been criticized for unfair treatment of their creators, mostly with how they split their income and the overworking of leading creators. Kakao Entertainment and Naver Webtoon executives were summoned at last year’s parliamentary audit, where they promised better treatment.

The terms of the agreement were written during 18 meetings held between the culture ministry, the Fair Trade Commission (FTC), 14 creators’ associations and webtoon companies, and reviewed by academics and lawyers.

According to the agreement, webtoon companies must ensure ample working time for webtoonists to finish their work, guarantee webtoonists the right to take time off and clearly state how long each episode will be when signing a contract.

A fund will be put together by the committee in the future. The government will come up with policy to encourage webtoons on the idea of diversity to be made.

The agreement is not legally binding, but will be used by the government in mediating any conflicts between creators and platforms in the future.

“It’s true that the webtoon industry is the fastest-growing out of all content genres in Korea, but it has been ridden with various issues such as unfairness, overwork and monopoly,” said Jeon Byung-geuk, first vice minister of culture, sports and tourism during a signing ceremony on Friday.

“Nevertheless, the committee has been formed in an effort to overcome this ailment wisely. We believe that it will become the foundation on which a healthy industry can grow.”

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]