S. Korea FTC Finds Over 1,000 Unfair Terms in Webtoon, Web Novel Contracts

South Korea's Fair Trade Commission (KFTC) has identified a sweeping number of unfair contract terms used by major webtoon and web novel content providers, including clauses allowing for the unauthorized production and use of derivative works such as films and dramas without proper consent from creators.According to a statement released on May 18, the KFTC reviewed the standard contract terms of 23 content providers and found 1,112 unfair provisions across 141 contract templates, and ordered the companies to revise them.The list includes leading names such as RIDI, Munpia, D&C MEDIA, YLAB, Kidari Studio, Storywiz, ToYou Dream, Redice Studio, Joara, and Lezhin Comics.The KFTC previously investigated webtoon platforms in 2018 and required revisions to clauses regarding derivative work rights. However, as exploitative contracts continued to surface, the commission expanded its investigation this time to include both content providers and serialization platforms.Sources: KFTC, YNA (Dea-hee Lee)