VOL.74/2024.09

 

Today and Future of Korean Digital Publishing

 

2023.08.07

 

 

 

The COVID-19 pandemic that began in 2020 has also brought about major changes in the digital publishing industry. Most importantly, it accelerated the AI digital textbook project, which nobody knew when it would gain a boost. It was also the trigger that facilitated digital transformation and digital convergence in the publishing industry.
The digital publishing industry in Korea has been developing for the past decade through continuous transformations. The iBooks Store - an e-book distribution market launched by Apple and Amazon Kindle – Amazon’s self-publishing service opened a full-fledged e-book publishing market in Korea. Many digital publishing start-ups joined the industry. There, major issues in the publishing industry were “self-publishing” and “multimedia app book.” However, over 10 years until now, the two issues have evolved in an unexpected direction in Korea.
Regarding self-publishing, unlike the expectation that there will be more single-person e-book publishers and single-person publishers, it gave birth to many creators (individual writers instead of companies). Until then, publishing a paper book in Korea through a publishing house had been very difficult. So, it was hard for creators to actually have their works go through a publishing house and sign a contract for publication. Also, getting recognized in the publishing world was hard without winning a few major literary contests. However, as publishing became easier through digital publishing, many new writers with fresh stories, distinct characteristics, and philosophies could advance into the market. Unconventional stories and writing that defy traditional conventions and standards have created a new resonance in the marketplace, stimulating the paperback publishing market.
The representative platform is Brunch Book, run by Brunch. Brunch Book opened the door to people who want to write spontaneously and freely, by providing a different writing environment from traditional editors and paper book publishers. Today, the platform has become a must-visit website for paper book publishers to discover new aspiring writers. There were even cases in which writers who published an e-book on Brunch Book were picked up by paper book publishers and had their book published physically.

 

 

So, while it is true that self-publishing has facilitated single-person e-book publishing, it has played a role as a new content supplier for existing publishers rather than expanding single-person e-book publishers. And this pattern has only grown and solidified since the COVID-19 pandemic. Stable, well-capitalized, mid-to-large-sized publishers that had previously focused exclusively on paperbacks began to launch e-books in earnest as they went through the pandemic. In addition to converting existing books to e-books, publishers also tried to change the distribution of new books by releasing them simultaneously in print and e-book formats, or by releasing them as e-books with only a week to ten days of hold back (the period between the release on the first platform and the release on the second platform). This approach has worked very well in the midst of the COVID-19 pandemic, with e-books boosting sales for publishers.

 

 

In addition, as the pandemic has forced all sectors to remain intact, work from home and various platforms such as Zoom meetings over the internet have taken hold. Different ways of consuming content and communication based on laptops, mobile devices, and tablet PCs have also taken root. This has led to a dramatic increase in the usage of e-book platforms and the rapid spread of e-book consumption. This increased the desire of readers to read their favorite books in paperback, which in turn increases book consumption, as readers who read e-books first also buy paperbacks.
The webtoon and webnovel markets, which are a part of digital publishing, also went through major changes throughout the pandemic. Small to medium-sized webtoon and webnovel companies have seen a dramatic increase in sales, prompting them to make bold attempts to scale up. Some sold their companies to tech firms such as Kakao and Naver for a high price, or they received venture capital (VC) investment and expanded their companies into various genres utilizing their original IP (Intellectual Property) such as movies, videos, and games. Now, “Series A – Series B – Exit”* has become a common term in webtoon and webnovel companies.

* Series A: The phase where you receive investments to officially launch the service. Series B: The phase where you expand the business based on the recognition from Series A. Exit: The phase where the investors sell the shares they received from the startup and recoup their investment.

 

Meanwhile, e-book subscription platforms like Millie, have allayed initial fears and concerns during the pandemic and have seen significant sales growth, helping to solidify the subscription revenue model in the e-book market. It also made a big splash in the market with bold new businesses such as chat books and audiobooks. The company was later acquired by KT.

 

 

However, the pandemic has not only positively impacted the digital publishing market. During this period, small and medium-sized publishers or single-person publishing houses that had been producing in small batches actually saw their sales decline, and many of their hard-working creators moved to larger publishing houses with more capital and marketing power, causing them to struggle with the supply of content. In addition, as large publishers have been pushing their content into the e-book market, many small publishers have been absorbed by larger publishers or closed their doors due to business difficulties. As a result, the market for e-books has become increasingly dominated by large publishers, which has led to polarization.
Therefore, the digital publishing market is now dominated by medium and large paperback-based publishers and large e-book platforms such as Kyobo Books, Aladdin, Yes24, Lidibooks, Kakao, and Naver, rather than the single-person e-book publishers and small platforms that led the e-book market in the early days. This trend is likely to continue in the future. Another big topic that will be important to the e-book market in the future is AI, or artificial intelligence. E-book content and e-book platforms utilizing various AI technologies are expected to drive the e-book publishing market.

 

 

In June this year, Korea’s Ministry of Education announced that AI digital textbooks will be distributed as a mandate starting in 2025. Paper and AI digital textbooks will now be distributed to elementary, middle, and high schools. It means that children will be meeting e-books from their birth. They will naturally tap into devices and read various e-books without limitation. All the exams will turn online in the future. In such a world, children will likely think of e-books first when they are told to think of books rather than paper books. So, sooner or later, the publishing industry will have to face the fact that e-books are not an option, but a necessity. But, the question is, is our publishing ecosystem ready for it with appropriate know-how?
The Education Ministry’s AI digital textbook project takes the form of paper book publishers and edu-tech firms with digital publishing know-how participating as a consortium, doing R&D and supplying textbooks together. Publishers that have been in the textbook business for a long time are already signing agreements with edu-tech companies and receiving investments, jumping into the AI digital textbook project. I expect this AI digital textbook project to be a beautiful collaboration between publishers who have long produced quality paperback textbooks and edu-tech companies with digital technology. By working together, publishers will learn about instructional design and various digital publishing technologies, and edu-tech companies will learn about the textbook production process of publishers with more than half a century of know-how.
I think this will have a huge impact on the entire publishing content industry beyond the textbook market. Companies, creators, and distributors will lead the publishing market in the future with visions to think, produce, and invest in both paper and e-books. This wonderful cooperation will continue, leading to the expansion of the global market, which is the goal of the publishing industry. The publishing industry will become a future-oriented industry, instead of being a declining or stagnant industry, through the growth and expansion of the digital publishing market. Also, it will be the most important and central industry with the oldest, the most original, and the best quality content among the many cultural contents. Again, I would like to emphasize that the future of publishing lies along that path, and I hope that all of us publishers will be part of that beautiful journey.

 

 

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Written by Cho Yoon-Jung (Executive director at the Korea Digital Publishing Cooperation)