AI textbook publishers sue government for damages, three years after policy launch

Textbook publishers that say they suffered losses from the government's reversal of its AI digital textbook policy have filed a civil damages suit against the state — the first such lawsuit since the Ministry of Education announced the initiative three years ago. The action is separate from ongoing constitutional petitions over the textbooks' legal status and marks the first time publishers have sought monetary compensation through civil litigation.

Several textbook and education companies that participated in developing AI digital textbooks — including YBM and Dong-A Publishing — filed a damages claim against the state at the Seoul Central District Court on Monday, according to sources in the education industry and legal community. Kim & Chang and Bae Kim & Lee are representing the plaintiffs.

The plaintiffs argue that they invested heavily in developing, certifying and building platforms for the AI digital textbooks in reliance on government policy, and that subsequent changes to the textbooks' legal status and their introduction in schools caused them financial harm. The total amount sought is believed to run into the hundreds of billions of won.

The Ministry of Education announced its AI digital textbook initiative in June 2023, saying it would introduce the textbooks in mathematics, English, information technology and special-education Korean-language classes from 2025, with plans to expand to subjects including Korean language, social studies, history, science, and technology and home economics. Development and certification proceeded on the assumption that the materials would hold official textbook status. However, following the declaration of martial law on Dec. 3, 2024, the ensuing impeachment crisis, and the stripping of the textbooks' official status in 2025, the materials are now used only as supplementary reference resources.

Publishers have challenged the policy reversal through constitutional petitions and administrative lawsuits. Last November, publishers, teachers, parents and students filed a constitutional petition against an amendment to the Elementary and Secondary Education Act that reclassified AI digital textbooks as educational materials. Constitutional petitions can take up to two years or more to reach a conclusion, however, and voices within the industry have argued that the process offers little practical relief for recovering losses.

The civil suit is a separate proceeding that directly seeks monetary compensation, and the legal issues also differ. While the constitutional petition examines whether the National Assembly acted unconstitutionally in changing the textbooks' status, the damages suit turns on whether private companies that relied on government policy actually suffered losses and whether the state bears responsibility for compensating them.

The industry has estimated total private investment in AI digital textbooks at 800 billion won ($520 million). Publishers say they spent not only on developing the textbooks themselves but also on building platforms, designing learning data systems, producing content, preparing for certification reviews, and expanding sales and operations teams. The specific amount claimed in the suit is expected to vary by company depending on individual investment levels and how damages are calculated.

Chunjae Education and Mirae N, which are believed to have suffered the largest losses, are preparing their own separate civil suits rather than joining the group action. A Chunjae Education official said the company is preparing a civil lawsuit but declined to provide further details.

Attention has also turned to why the companies chose to keep the filing quiet. The plaintiffs are said to have agreed to treat the suit as confidential. Industry observers suggest the companies may have been reluctant to be seen in open confrontation with the government, given that they must continue working with the Ministry of Education, regional education offices and schools.

"The publishers' basic position is that this was a case of private companies making large-scale investments based on trust in a government-driven policy," an industry official said. "Because a constitutional petition alone cannot realistically recover actual losses, a damages lawsuit was an inevitable next step."

The filing means the dispute over AI digital textbooks has now escalated into a legal battle over whether the state bears financial liability to the private companies that invested in the initiative.