Korean Publishers Association Celebrates After Police Clear Them of Wrongdoing

An investigation into the Korean Publishers Association over the Seoul International Book Fair and alleged misuse of government subsidies has been closed with no charges, the KPA said Monday.

The Seoul Jongno Police Station issued a “no charges filed” decision on July 7 in a case accusing the organization of violating the Subsidy Management Act and criminal statutes, including document forgery and obstruction of business, according to the KPA.

The case originated from a 2023 complaint filed by the Culture Ministry under then-Minister Park Bo-gyoon. The ministry questioned whether the KPA had concealed revenues from the SIBF and failed to report profits, despite receiving annual government subsidies of up to 1 billion won ($725,000) for the event.

The ministry accused the KPA of forming a “cartel” with the Publication Industry Promotion Agency of Korea (KPIPA), a state-affiliated body overseeing publishing subsidies. It alleged that the organizers had redacted or withheld financial details, including fees from overseas participants, and referred the case to police for further investigation in August 2023.

In response to the complaint, the Culture Ministry cut 3 billion won (2.25 million USD) in subsidies earmarked for the book fair and international participation projects. It also barred the KPA from applying for new state-funded initiatives. Starting in 2024, government support for the fair was redirected through KPIPA to assist individual exhibitors, bypassing the association.

However, the official police notification revealed that authorities found no evidence of the association concealing earnings or misusing subsidies. Police concluded that financial arrangements for the book fair, including revenue and expense reporting, had been pre-negotiated among the Culture Ministry, KPIPA, and the KPA.
“There was no misuse of subsidies for purposes outside their original scope,” the KPA stated, citing the investigation’s outcome. “The findings clearly show that there was no wrongdoing in our management of either the public subsidies or the fair’s revenues.”

The KPA criticized the ministry’s actions as overreach and expressed hope that the newly appointed culture minister under the Lee Jae Myung administration would bring renewed support and stability to publishing policy.