Jiyaeyeon "Domestic Music Securities Market Worth 15 Trillion Won, Creates Jobs for Over 100,000 People"

Korea Intellectual Property Research Institute Analyzes Economic Impact of Music Revenue Securities Market
Issuing Revenue Securities for All Domestic Music Copyrights Estimated at 15 Trillion Won

The value of the domestic music revenue securities market is estimated at 15 trillion won. If the capital formed through the music revenue securities market is invested in the music industry, it is expected to create 102,000 jobs and provide up to 3.12 million people with new opportunities for creative activities.

Market Value Size of Music Revenue Securities (Estimated) [Source = Korea Intellectual Property Research Institute]

The Korea Intellectual Property Research Institute (hereinafter referred to as KIPRI) announced these findings in a research report titled "Economic Effect Analysis of Introducing Music Revenue Securities" on the 16th. The report focused on the role of music revenue securities in providing creators with new funding opportunities, and offering music consumers and investors continuous copyright royalty distribution and economic profits through capital gains on revenue securities, analyzing their economic value and positive effects in depth.

According to KIPRI's estimates, if all domestic music copyrights currently released were issued as music revenue securities, the market value would amount to 15.108 trillion won.

First, based on the copyright and neighboring rights royalty collection amounts as of 2023, KIPRI estimated the size of the tradable domestic music copyright market at 1.5108 trillion won. Applying a purchase multiple?which evaluates the current market situation and estimates an effective recognition period for future cash flows to assess copyright value?considering the domestic and international music copyright trading markets and the characteristics of the domestic music market, the estimated market value of the domestic music revenue securities market was assessed to range from 15.108 trillion won to 22.6615 trillion won.

Analysis of Economic Effects Following the Introduction of Music Revenue Securities.
[Photo by Korea Institute of Intellectual Property website]

If the 15.108 trillion won capital formed through the issuance of music revenue securities is invested in the music market, it is estimated that 629,500 new songs could be created, and 570 billion won in copyright royalties could be collected over three years from the newly created albums.

The employment inducement effect is estimated at approximately 102,000 people, and it was also explained that during the creation of about 629,000 new songs, up to approximately 3.12 million creators could gain opportunities to contribute to music creation. This is because five fields of creators?composers, lyricists, arrangers, performers, and album producers?participate in bringing one album to the world.

KIPRI also predicted that the previously estimated market size could further expand due to potential increases in total copyright royalty collections through improvements in copyright systems, such as ▲expansion of performance royalty rates ▲approval of increased OTT transmission rates ▲reduction of copyright limitation reasons stipulated by copyright law ▲possible introduction of private copying compensation system ▲utilization of undistributed compensation funds.

However, it was mentioned that for the music revenue securities market, which has positive effects on the music industry and the domestic economy, to be activated, improvements in copyright law and capital market law related to financial assetization of music copyrights are necessary.

This content was produced with the assistance of AI translation services.