K-Pop Royalty Faces Royalty Crisis: Rosé’s Bold Move Amidst Income Disparities
South Korea’s global music phenomenon, K-pop, is hitting a significant snag—but it’s not about catchy choruses or slick choreography. The real issue lies in the royalties system affecting music creators across the country. Recent reports reveal that artists are receiving far less from streaming profits compared to their international peers. In a bold response, even high-profile stars like BLACKPINK’s Rosé have begun to opt out of the country’s copyright system altogether.
At the heart of this troubling trend is the Korean Music Copyright Association (KOMCA). Their latest data shows that a mere 10.5% of streaming revenue in Korea makes its way back to songwriters and copyright holders. This earnings gap is stark when compared to creators in the U.S., who see approximately 12.3%, and even more so for artists in the U.K. and Germany, where the shares are 16% and 15%, respectively.
Korean platforms like Melon, a dominant player in the industry, are particularly problematic, retaining around 35% of revenue—a figure that’s significantly higher than the global average of under 30%. While the situation has seen some improvement since 2008, when creators only received 5%, it’s clear that traditional systems still heavily favor intermediaries.
One major complication arises from the multitude of parties involved in the revenue distribution process. In Korea, funds must navigate a labyrinth of distributors and various copyright management organizations before reaching the artists, resulting in multiple deductions along the way. This is in stark contrast to the process for many international artists, who typically collaborate with a single publisher, streamlining their revenue flows.
Experts suggest that this convoluted process might be why Rosé chose to withdraw from KOMCA. Given that much of her income is generated overseas, she faces double fees—once to international publishers and again to domestic entities like KOMCA. This double-deduction significantly impacts her overall earnings, with reports indicating that while direct deals with platforms like Apple Music could net her a full 100% of the revenue, going through traditional Korean channels reduces that to about 60-70%.
In an exclusive report from Dispatch, it was revealed that Rosé officially applied to terminate her KOMCA contract on October 31, 2024. Following a mandatory three-month grace period, her decision was confirmed on January 31, 2025. Remarkably, this makes Rosé the first Korean artist since Seo Taiji in 2002 to step away from KOMCA.
As the K-pop industry grapples with these challenges, Rosé’s bold decision shines a light on the urgent need for reform in Korea’s music rights system. With such high-profile moves, the hope is that a wave of change could be on the horizon for all K-pop creators.
