[비즈한국] The Korea Fair Trade Commission (KFTC) has launched a fact-finding investigation into the revenue structures and trading practices of the webtoon and web novel industries. The initiative aims to examine the contract structures involving platforms, Content Providers (CPs), and creators, and to verify whether there have been any unfair practices regarding profit-sharing, minimum guarantee (MG) payment methods, and the establishment of secondary copyrights.
According to industry sources and authorities on the 4th, the KFTC recently began a 'fact-finding survey on unfair practices in the webtoon and web novel sectors.' The investigation targets approximately 100 businesses, including major domestic webtoon and web novel platforms and CP firms. The KFTC plans to verify the revenue structures, transaction realities, competitive landscape between platforms, and methods for securing hit content for each company. If necessary, it also intends to review whether there have been any violations of relevant laws, such as the Fair Trade Act and the Terms and Conditions Regulation Act.
Revenue Sharing, MG, and Secondary Copyrights are Key Issues
A core issue in this investigation is the Revenue Sharing (RS) structure. RS is a method where platforms, CPs, and creators divide the revenue generated from a work by a certain percentage. Webtoons and web novels are distributed through platforms, and in many cases, CPs take on roles in planning, production, and management. A key area of inspection is how the final share returning to the creator is calculated and whether the settlement standards and details are sufficiently transparent.
The methods for paying and deducting Minimum Guarantees (MG) are also under investigation. MG is a type of payment made to a creator in advance, regardless of a work's performance. However, if a method is applied where the MG is deducted first from subsequent earnings, it can become difficult for the creator to receive additional profit until the work's revenue reaches a certain level. Industry experts have pointed out that while MGs act as a mechanism to guarantee stable income for creators, they can also become a source of disputes over profit settlement depending on the contract type.
Contract practices surrounding the rights to create secondary derivative works are also being reviewed. When webtoons and web novels are expanded into dramas, films, games, or animations, additional revenue outside of the original work can be generated. Because of this, it has become a contentious issue whether platforms or CPs are excessively limiting creators' rights by securing comprehensive rights for secondary works at the initial contract stage or by setting long-term exclusivity periods.
Expanding from Correcting Unfair Terms Last Year to Investigating Trade Structures
This is not the first time the KFTC has looked into contract practices in the webtoon and web novel sectors. In 2025, the KFTC reviewed the terms and conditions used by 23 content businesses in these fields and corrected 1,112 unfair clauses across 141 sets of terms. The corrections at the time included clauses that arbitrarily set secondary derivative rights for businesses, clauses that restricted copyright holders' exercise of rights, clauses that imposed excessive liability for damages, and clauses that potentially failed to provide essential information such as settlement data.
This fact-finding survey is more focused on examining the industry's overall revenue structure and trading practices, going beyond individual contract clauses. While the webtoon and web novel markets have grown centered around platforms, CPs have recently expanded their roles in connecting planning, production, and distribution between writers and platforms. As the structure of production and supply through CPs has increased, alongside structures where creators contract directly with platforms, the relationships regarding profit-sharing and ownership of rights have become more complex.
Reports submitted to the office of Representative Kim Young-man of the Democratic Party of Korea are also aligned with this investigation. It is known that the office's survey received 306 reports regarding unfair practices from 102 companies in the webtoon and web novel industry. The reports reportedly include issues such as opaque settlements, forced MG contracts, unfair commission fees, and demands for repeated revisions without compensation.
The KFTC investigation is scheduled to continue until the end of the year. Depending on the results, it could lead to institutional improvements or follow-up investigations. In particular, as the webtoon and web novel industry is a field where domestic platforms are actively expanding overseas and developing secondary content like video adaptations, discussions regarding the standards for profit-sharing and rights establishment are expected to continue.