K-Pop's Global Influence Grows, But South Korea's Copyright Awareness Lags Behind

While K-Pop continues to expand its influence globally, the awareness of copyright among domestic audiences in South Korea shows little sign of improvement. Business owners are required to pay 'performance fees' (a type of copyright fee) when playing music in commercial spaces like cafes, yet the collection amount is only a quarter of that in Japan. Institutional limitations and a lack of copyright awareness are cited as reasons.

Last year, the Korea Music Copyright Association (KOMCA) collected 60 billion won in performance fees. Although this seems substantial, it falls short compared to other developed countries. The American Society of Composers, Authors, and Publishers (ASCAP) collected a total of $1.471 billion (approximately 2.176 trillion won) in performance fees within the U.S. alone last year. Japan's performance fee collection for 2024 is 26.01954 billion yen (approximately 240.53248 billion won), about four times the amount collected by KOMCA last year. Japan's leading music copyright organization, JASRAC, typically announces its performance fee collection results in May, so last year's (2025) figures are not yet available.

Even Spain, with a much smaller music market than South Korea, collects double the performance fees. The Spanish music copyright association SGAE managed performance fee revenues totaling 73.9 million euros, equivalent to 127.81152 billion won. According to the '2026 Global Music Report' by the International Federation of the Phonographic Industry (IFPI), South Korea ranked 7th among the world's top 10 music markets last year. The U.S. and Japan were 1st and 2nd, respectively, but Spain did not make the list.

Industry insiders point to 'Article 29, Paragraph 2 of the Copyright Act' as a reason for the insufficient collection of copyright fees in South Korea. This provision allows commercial establishments to play commercial music for free unless they charge customers an entrance fee or similar compensation. Only certain industries like large marts, entertainment venues, and coffee shops are 'exceptionally' required to pay copyright fees as determined by presidential decree. Many stakeholders argue that this provision effectively allows most general stores to use music 'for free' without issue, hindering creators' revenue generation.

In countries other than South Korea, business owners pay a minimum of 30,000 to 40,000 won per month in performance fees, regardless of the type of establishment. If they fail to pay and are caught, they face fines ranging from hundreds of thousands to millions of won. To avoid legal issues, business operators must pay performance fees to each copyright management organization, but online services that simplify this process are widely used. A comparison of the top 10 services shows that a small cafe pays an average of $26 (approximately 38,474 won) per month. However, most domestic stores do not pay music copyright fees (performance fees), and even if they do, they pay only about 4,000 won per month (2,000 won to KOMCA and 2,000 won to performers).

Both industry insiders and self-employed individuals subject to fee collection agree that 'there is an issue of fairness' with this system. For example, if a cafe selling coffee adds bread, pasta, or salad to its menu, it is reclassified as a 'bakery' or 'restaurant' and becomes exempt from copyright fee collection, a common complaint among business owners.

As a result, Article 29, Paragraph 2 of the Copyright Act has been brought before the Constitutional Court. In 2019, the court ruled 5 to 3 that the provision is constitutional, arguing that the public benefit of increased access to music outweighs the financial burden on small business owners if copyright fees were imposed. The three dissenting judges argued that the increase in public cultural benefits is uncertain and that the infringement on creators' rights is more significant, thus deeming it unconstitutional.

Before and after the Constitutional Court's ruling, the international community has consistently raised concerns about South Korea's low performance fee collection. In 2018, the UK's music copyright management organization PRS submitted a petition arguing that this legal provision violates international treaties and requested a review of the regulation. In October last year, the International Confederation of Societies of Authors and Composers (CISAC) demanded the complete abolition of Article 29, Paragraph 2, stating that 'this provision undermines the fundamental rights of creators to authorize the use of their works and receive fair compensation, as guaranteed by international law and South Korea's legal system.'

As important as reviewing the legal provision is improving domestic awareness of copyright. Currently, even collecting the price of a 'cup of coffee' in fees poses challenges, with some business owners physically threatening those involved in the collection process. While public cultural benefits are important, so are creators' rights. Although 30,000 won per store may not seem like much, the total performance fees collected from stores nationwide would be substantial for creators.

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