Who Owns the Music Money? Korea’s Copyright Bodies Battle Over YouTube Royalties (Image courtesy of Pixabay/CCL)
SEOUL, Oct. 16 (Korea Bizwire) — Two of South Korea’s largest music copyright organizations are locked in a legal dispute over more than 100 billion won (about $72 million) in so-called “residual royalties” collected from YouTube — funds generated from music whose rights holders were unidentified or failed to claim payment in time.
The Korea Music Copyright Association (KOMCA), the country’s biggest copyright trust, has been accused by the Korean Society of Composers, Authors and Publishers (KOSCAP) of embezzling and mismanaging the unclaimed royalties.
KOSCAP alleges that KOMCA held the funds in its own accounts for years without disclosing their existence, distributed portions only to its own members, and failed to provide transparency about how the money was calculated or allocated.
KOSCAP said it filed both a civil lawsuit in February seeking restitution and a criminal complaint last month accusing KOMCA of breach of trust and embezzlement under South Korea’s Act on the Aggravated Punishment of Specific Economic Crimes.
The group also plans to file a complaint with the Fair Trade Commission, alleging discriminatory treatment by Google, which operates YouTube, in its dealings with the two associations.
Top Copyright Bodies in Court Fight Over YouTube Royalties
In response, KOMCA said in a statement that it lawfully received royalties from YouTube under an official licensing agreement with Google.
It explained that residual royalties accumulated between late 2016 and mid-2022 when rights holders failed to claim payments within 24 months. Google, believing most of the music involved fell under KOMCA’s management, temporarily paid the funds to the organization beginning in 2019.
KOMCA said it has since settled payments with KOSCAP for verified claims submitted in 2022 and no longer receives residual royalties from YouTube. The association emphasized that the funds were not its property but “escrow-type deposits” intended for distribution once rightful owners make a claim.
“We regret that we did not communicate this more proactively,” KOMCA said, adding that it will begin officially notifying creators from October 17 on how to claim the royalties through its website.
The rare public clash between KOMCA and KOSCAP has spotlighted the lack of transparency and oversight in South Korea’s digital music royalty system — an issue that is growing increasingly urgent as online streaming platforms dominate the country’s music economy.
Ashley Song (ashley@koreabizwire.com)
