Seoul Intl. Book Fair claims end in no charges
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.
According to the KPA, the Seoul Jongno Police Station issued a 'no charges filed' decision on July 7 in a case that accused the organization of violating the Subsidy Management Act and criminal statutes, including document forgery and obstruction of business.
The case stems from a 2023 complaint filed by the Culture Ministry under then-Minister Park Bo-gyoon, who 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 claimed 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.
Following the complaint, the Culture Ministry slashed 3 billion won in subsidies earmarked for the book fair and international participation projects and barred the KPA from applying for new state-funded initiatives. Starting in 2024, government support for the fair was rerouted through KPIPA to assist individual exhibitors, bypassing the association.
However, according to the official police notification, authorities found no evidence that the association had concealed earnings or misused subsidies. Police concluded that financial arrangements for the book fair, including how revenues and expenses were reported, 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 said in a statement, citing the outcome of the investigation. '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 government would bring renewed support and stability to publishing policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
15 hours ago
- Korea Herald
Korean stocks tumble on tax reform letdown, trade uncertainty
South Korea's benchmark Kospi slumped nearly 4 percent on Friday, marking its steepest single-day drop in two months, as investor optimism soured following disappointment over the government's tax code revision and mounting uncertainty over US tariff talks. The Kospi closed at 3,119.41, down 3.88 percent from the previous session. The selloff was led by institutional and foreign investors, who offloaded 10.7 trillion won ($7.6 billion) and 656.5 billion won worth of shares, respectively. Retail investors extended profit-taking for a second straight day, snapping up a net 1.63 trillion won worth of shares on Friday alone. Friday's plunge snapped a rally that had gained momentum since President Lee Jae Myung took office on June 4, fueled by expectations of market-friendly policies. Those hopes had propelled the Kospi 20 percent, with the index setting a new annual high of 3,288 just a day earlier. But Thursday's late-session profit-taking signaled growing caution, which deepened sharply the following day. Friday's decline marked the largest daily fall in two months and dragged the index below the 3,200 level for the first time in five sessions. Markets reacted negatively to details of the tax code overhaul unveiled late Thursday, which fell short of investor expectations. Key changes include lowering the capital gains tax threshold for major shareholders to 1 billion won from 5 billion won, and reinstating the stock transaction tax, which imposes a 0.2 percent levy on financial investment income. While separate taxation for dividend income is designed to boost investment, the higher-than-expected top tax rate of 35 percent on income exceeding 300 million won sparked concern among investors and companies, particularly those working to improve dividend payouts. Sentiment was further dented by lingering uncertainties over trade policy. Although Korea and the US reached an agreement the previous day to apply a 15 percent tariff on Korean imports, which is lower than the initially threatened 25 percent, lingering concerns over Free Trade Agreement-beneficiary sectors, such as autos, continued to weigh on the market. The tech-heavy Kosdaq index fared even worse, tumbling 4.03 percent to close at 772.79, finishing below 800 first time since July 15. Spreading uncertainty has weakened the Korean won, pushing it above the 1,400 mark against the US dollar for the first time in about two months. As of 4:30 p.m., the won was trading at 1,404 won per greenback. 'Policy momentum had been one of the strongest drivers of the July rally,' said Lee Jae-won, an analyst at Shinhan Securities. 'That pillar crumbled under the weight of investor disappointment, fueling the sharp decline.' Lee noted that Friday's heavy foreign net selling was particularly critical in triggering the rout. Lee Kyoung-min of Daeshin Securities said the market is entering a consolidation phase as the second-quarter earnings season unfolds and recent overheating unwinds. 'As investors reassess earnings across sectors that had surged on optimism or slumped on concerns, we expect rotation and relative value adjustments to accelerate,' Lee said. 'Even small triggers could prompt swift profit-taking and a rapid unwinding of overheated positions, warranting caution.' jwc@
Korea Herald
15 hours ago
- Korea Herald
Lee to go on weeklong summer vacation
President Lee Jae Myung's weeklong summer vacation will start this weekend, during which he will spend his time at the presidential resort on an island located near the southern city of Geoje, his office said Friday. Lee's official vacation period is from Aug. 4 to 8, but it will start from Saturday. At the historic resort on Jeodo Island, he plans to reflect on the country's political situation and take time to 'recharge by reading books and watching movies,' the presidential office said. Lee plans to continue to keep an eye on key state affairs, such as matters tied to people's livelihoods. He will receive reports from the presidential office in case of an emergency or if urgent issues need to be addressed. Lee's break comes soon after a trade deal was reached between Seoul and Washington on Thursday, in which tariffs on South Korean imports were lowered to 15 percent from the initially proposed 25 percent in return for a $350 billion investment pledge from Korea into key US economic sectors. US President Donald Trump, on the same day the trade agreement was reached, mentioned a potential summit with Lee in "the next two weeks." Officials in Seoul and Washington have started discussions to arrange the meeting, according to South Korean Foreign Minister Cho Hyun, speaking to reporters after meeting with US Secretary of State Marco Rubio on Thursday, US time.
Korea Herald
16 hours ago
- Korea Herald
Pro-labor, broadcast reform bills to be put to vote next week
Several contentious bills, including one pro-labor bill and three aimed at reducing government influence over public broadcasters, will be put to a vote at the National Assembly next week after a parliamentary standing committee approved them on Friday. The Assembly's Legislation and Judiciary Committee, led by the ruling Democratic Party of Korea, voted in favor of passing the three broadcasting bills and the pro-labor bill dubbed the 'Yellow Envelope Law' during a meeting. All four bills are sponsored by the ruling party and the liberal Lee Jae Myung administration. With 16 of the 18 committee members in attendance, all bills passed after 10 voted in favor, with six abstentions. Of the total 18 members, 10 are lawmakers of the ruling party, including the committee's chair, Rep. Lee Choon-suak of the Democratic Party. Seven are main opposition People Power Party lawmakers, while one is a member of the minor progressive Rebuilding Korea Party. Committee members belonging to the People Power Party vocally protested during Friday's vote. Democratic Party members, however, refused to hold a debate over the bills despite the main opposition's request. The bills will be put to a vote during a parliamentary plenary session scheduled for Monday. The People Power Party announced plans to launch a filibuster to delay the passage of the legislation. The 'Yellow Envelope Law' is a revision to the Trade Union and Labor Relations Adjustment Act that focuses on restricting companies from claiming damages against legitimate disputes involving labor unions. The nickname stems from the donations that the public sent to support SsangYong Motor workers in 2014, after they were laid off and faced court orders to compensate their employer for the damages made to company properties during a strike. South Korean business lobby groups, the American Chamber of Commerce in Korea and the European Chamber of Commerce have all voiced concerns that the passage of the bill could prompt foreign companies to withdraw from the Korean market. Meanwhile, the amendments to the Broadcasting Act, the Foundation for Broadcast Culture Act and the Korea Educational Broadcasting System Act aim to increase the number of board directors at public broadcasters KBS, MBC and EBS, respectively. The set of bills quintessentially seeks to reform the governance structure of the public broadcasters by reducing the government and the National Assembly's power to name the board directors. The opposition claims the restructuring aims to reinforce the influence of labor unions. All four bills were previously vetoed by former President Yoon Suk Yeol when he was in office, after the Assembly at the time, led by then-main opposition Democratic Party, passed them.
