South Korea’s global music powerhouse, K-pop, is facing a quiet but serious crisis — and it’s not about album sales or choreography. It’s about royalties. Due to a convoluted and outdated distribution system, music creators in Korea are seeing a significantly smaller share of streaming income compared to their international counterparts. The problem has become so severe that even high-profile idols like BLACKPINK’s Rosé are opting out of Korea’s copyright system altogether.
BLACKPINK’s Rosé Reportedly Withdraws From KOMCA (Korea Music Copyright Association)
At the center of the issue is the Korean Music Copyright Association (KOMCA), which recently revealed in a detailed report that only 10.5% of streaming revenue in Korea ends up with the songwriters and copyright holders. In contrast, creators in the U.S. receive 12.3%, while the U.K. and Germany offer even higher shares at 16% and 15%, respectively.
Meanwhile, Korean streaming platforms, including industry giant Melon, take about 35% of revenue, which is notably higher than the global average of under 30%. KOMCA noted that although things have improved since 2008 — when platforms claimed 57.5% and creators just 5% — the current distribution still disproportionately favors intermediaries.
One major hurdle is the sheer number of middlemen involved. In Korea, revenue must pass through multiple layers — including distributors and several copyright management organizations — before it reaches the artist. Each organization takes a cut, leaving less for the original creators. In contrast, many foreign artists simply work with a single publisher to manage their rights and income, resulting in a more efficient and creator-friendly system.
This inefficiency is believed by experts to be one reason why Rosé withdrew from KOMCA. As her music generates income overseas, the current system requires her to pay fees both to international publishers and again to domestic copyright groups like KOMCA. This double-deduction dramatically reduces her final earnings. Insiders claim that while direct platform deals (like with Apple Music) could yield her 100% of revenue, going through Korean channels could reduce that to just 60–70%.
Previously, according to an exclusive report from Dispatch, Rosé applied for the termination of her contract with KOMCA on October 31, 2024. After the three month grace period ended, the termination of her contract was confirmed on January 31, 2025. Rosé is the first Korean artist since 2002 to withdraw from KOMCA, when Seo Taiji decided he would not renew his contract with the organization.