Webtoons and Contracts. (Image courtesy of Yonahp)
SEOUL, May 20 (Korea Bizwire) — South Korea’s Fair Trade Commission (FTC) has uncovered more than 1,100 unfair contract clauses across 23 major webtoon and web novel content providers (CPs), exposing widespread practices that undermine creators’ copyright protections and allow for the unauthorized use of derivative works.
Following a comprehensive review of contract terms from companies including RIDI, Munpia, Millie’s Library, Kidari Studio, and others, the FTC ordered the removal or revision of 141 unfair clauses related to derivative rights, automatic contract extensions, and unilateral termination.
One of the most common violations involved unauthorized control over derivative works—such as film or television adaptations. Seventeen CPs, including Daewon C.I. and Millie’s Library, inserted clauses seizing the right to create such adaptations, despite this right legally belonging to the original author under Korean copyright law.
In another notable case, 12 companies including RIDI were found to have demanded blanket transfers of all copyrights stemming from the original work. Eleven CPs also included provisions allowing them to assign authors’ rights to third parties without the authors’ consent.
Additional problematic practices included:
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Forcing authors to indemnify CPs for all disputes, regardless of fault (21 companies, including YLAB)
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Restricting moral rights, such as the author’s right to be credited (13 companies, including SomyMedia)
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Claiming joint authorship without contribution, as seen with Haksan Publishing and others
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Automatically extending contracts unless the author provides advanced notice (7 companies)
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Continuing to use works post-contract without permission (14 companies)
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Allowing unilateral termination for vague reasons like “unsuitability” (13 companies)
The crackdown follows an earlier 2018 FTC action targeting webtoon platforms, which had already flagged unauthorized use of derivative rights. However, complaints persisted—prompting a broader sweep focused on content providers and serialization platforms not previously reviewed.
“This move will help restore balance in the content creation industry and safeguard the rights of writers,” the FTC said in a statement. “We will continue to monitor and act against companies that exploit their dominant positions to impose unjust contractual terms on creators.”
The decision is seen as a landmark step toward fairer industry standards in Korea’s booming digital content market, which has become a global force in web-based storytelling.
M. H. Lee (mhlee@koreabizwire.com)
