KOMCA Criticizes CJ ENM for Unpaid Music Royalties

The Korea Music Copyright Association (KOMCA) has raised concerns over unpaid royalties by cultural enterprise CJ ENM.

KOMCA, the largest music copyright trust management organization in South Korea, has strongly condemned CJ ENM's music channel Mnet for years of unpaid music royalties. The association has called for immediate settlement and fair use of music.

According to KOMCA, Mnet, a leading music broadcasting channel in South Korea, has not signed a formal contract with the association regarding music usage. Instead, Mnet has been unilaterally paying arbitrarily calculated royalties and has deliberately continued to withhold payments. KOMCA also stated that Mnet has failed to submit music usage reports, which are required under Article 107 of the Copyright Act for royalty settlement.

KOMCA claims that Mnet has not paid tens of billions of won in music royalties since 2018, causing ongoing financial harm to music creators who rely on these royalties for their livelihood. Mnet has cited the lack of an established environment for preparing music usage reports as the reason for non-compliance.

CJ ENM, which operates Mnet, has built its image as a leader in Korean music and culture through events like K-CON since 2012. A KOMCA representative criticized CJ ENM's dual stance, stating, "While CJ ENM promotes K-CON as the world's largest Hallyu cultural festival to enhance its brand image, it fails to pay proper music royalties. Such hypocritical behavior and illegal actions are unacceptable."

The representative added, "CJ ENM's actions are not just a corporate issue but could have severe repercussions for the entire Korean music industry. This raises questions about CJ ENM's qualifications as a cultural platform company and necessitates discussions on their legal and ethical responsibilities."

KOMCA emphasized, "CJ ENM must promptly submit music usage reports, sign valid music usage contracts, and pay fair royalties. This is the minimum action required to protect the rights of copyright holders and is an obligation that cannot be delayed any further."

Min-Kyung Lee, TenAsia Reporter 2min_ror@tenasia.co.kr