Korean Music Copyright Association Suspends Payment of 24 billion won in Music Royalties Amid Allegations of 'YouTube Abuse'
Allegations of Artificially Inflating Usage Through 'Shorts' to Generate Profits
Issues Raised During Parliamentary Oversight Hearings… Music Copyright Association of Korea: "Conducting Further Verification"
[Edaily Starin KIM HYUNSIK Reporter] The Korea Music Copyright Association (KMCA) announced on the 22nd that, in connection with allegations of “YouTube music abuse” raised during a parliamentary audit, it has suspended royalty payments to some rights holders and is conducting further verification. (Photo: KMCA)Previously, during the National Assembly’s Culture, Sports, and Tourism Committee hearing held on the 12th, Rep. Jin Sun-mi of the Democratic Party of Korea pointed out the problems with so-called “abuse”—a monetization method that artificially drives the use of specific music tracks to generate large sums of copyright royalties—and raised concerns about the fairness of royalty distribution. According to the KOMRA, four rights holders are involved in this matter, and a total of 802 songs are registered. The copyright royalties currently claimed amount to approximately 24 billion won, and when combined with amounts already distributed, the total is estimated to exceed 30 billion won. The key issue is whether the usage records for these tracks resulted from normal music consumption or were artificially inflated for the purpose of financial gain. Some YouTube Shorts channels operate by producing videos that feature specific songs commissioned by music rights holders to increase view counts, and then splitting the resulting copyright royalties with the rights holders. The Korea Music Copyright Association (KMCA) stated, “It is possible that usage statistics were generated by using music unrelated to the video content or by inserting audio tracks at a volume so low they are virtually inaudible,” but added, “Further verification is needed regarding the appropriateness of these practices. We are currently reviewing the operating methods and contractual relationships of the relevant channels and sharing related information with overseas copyright organizations.” A member of the KOMCA filed a complaint with the police in February regarding this matter, alleging fraud and obstruction of business. Subsequently, on June 30, the police decided not to refer the case for prosecution due to insufficient evidence. The KOMCA has since requested a review of the investigation. Following the police’s decision not to refer the case, the KAC re-examined whether to lift the suspension of royalty payments; however, at a board meeting on the 29th of last month, it determined that further verification of the facts was necessary and decided to maintain the suspension. The Association stated, “While legitimate copyright royalties should naturally be paid, given that serious doubts have been raised regarding the appropriateness of the distribution, paying a large sum without sufficient verification is also a matter that requires caution,” adding, “We must verify not only the payment demands of some rights holders but also whether the legitimate share of other creators has been infringed upon.” The association added, “We will thoroughly verify the facts related to the allegations raised during the parliamentary audit and, in cooperation with relevant agencies and overseas copyright organizations, review necessary follow-up measures.”
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