[Interview] Composer Hyungseok Kim Pledges Overhaul of Korea's Copyright Market: "I Will Give It My All"

Running for the 25th President of KOMCA
Addressing Overseas Royalty Losses, OTT Settlements, and the AI Era
"Restructuring the System to Protect Creators' Rights"

Composer Hyungseok Kim. Provided by the artist

"I will give it my all and approach this with nothing to be ashamed of."

Composer Hyungseok Kim, whom we met on November 19 in Gangnam, Seoul, explained his reason for running in the 25th presidential election of the Korea Music Copyright Association (KOMCA) in these words. He stated, "Now that I have turned sixty, I am in a position to listen to both young creators and the senior generation," adding, "With growing distrust among creators in their 20s and 30s toward the association, someone needs to change the system."

Hyungseok Kim is one of the leading creators who, along with Jinyoung Park, led the heyday of K-pop in the 1990s and 2000s. He recalled, "The day before I announced my candidacy, I spoke with Jinyoung on the phone, and he told me, 'Hyung, let’s do this without a shred of shame until the day you step down.' That comment stayed with me for a long time," adding with a laugh, "I never expected that the person who would say that would not only be Jinyoung, but ultimately myself as well."

The first issue he pointed out was the structural flaws in the overseas royalty collection system. The Mechanical Licensing Collective (MLC) in the United States is a non-profit organization established under the Music Modernization Act (MMA), which uniformly collects and distributes mechanical reproduction and transmission royalties generated from streaming services. Settlement is only possible when the work and sound recording codes (ISWC and ISRC) are matched correctly; unmatched royalties are moved to the Unclaimed Usage (U-PIC) list and, after a certain period, are converted into a domestic fund within the United States.

Hyungseok Kim noted, "The MLC distributes about 700 billion won each year, and although K-pop accounts for at least 2 percent of this, the actual amount recovered is only about 200 million won," pointing out, "Most of the rightful payments are missing due to registration and matching errors on the Korean side, as well as outdated systems at local agencies." Regarding the Chinese market, he explained, "It is a market worth about 38 trillion won, led by Tencent and NetEase Cloud Music, but the amount we recover is less than 700 million won," adding, "The code matching system does not function properly."

To resolve these losses occurring in the three major markets of Korea, China, and the United States, he emphasized the need to introduce a Korean-style 'K-MLC' system. "We must work with the government to build a global royalty collection system and establish direct connections with the US MLC and China’s MCSC," he said, "Once a problem is identified, we should immediately discuss solutions, but so far, the current leadership has essentially done nothing."

He also cited the online video service (OTT) and broadcasting sectors as urgent issues. Hyungseok Kim pointed out, "The Supreme Court ruled that settlements should be based on total sales, but some organizations have left a problematic precedent by contracting based on past net sales or user ID criteria." He added, "Matters such as securing cue sheets and adjusting rates must be systematically addressed in cooperation with the Ministry of Culture, Sports and Tourism."

Regarding the domestic platform environment, he diagnosed, "The monopolistic structure centered on YouTube has become entrenched, and both streaming services and broadcasters are struggling due to declining advertising revenue," adding, "If the domestic market collapses, our negotiating power with global platforms will also weaken."

Composer Hyungseok Kim. Provided by the artist

He also stressed the importance of preparing for the era of artificial intelligence (AI). "Now, anyone in the country can compose and write lyrics using AI," he said, "If we fail to establish systems for recording creative logs, ensuring transparency in distribution, and managing copyrights based on blockchain, there is a high risk that control over copyrights will shift from the association to IT platforms." He continued, "There is a clear 'golden time' for AI. If we do not prepare now, it will be too late."

He was even more direct regarding internal management issues within the association. "There are factions within the association, and as long as they exist, reform is impossible," he said. "I have no intention of seeking re-election. If I fail, the responsibility is entirely mine." He presented additional reform measures such as introducing a professional CEO system, operating based on global accounting consulting, and making the entire process of board and committee meetings public. "If necessary, we could even broadcast meetings live on YouTube," he emphasized.

Hyungseok Kim also identified enhancing the association’s brand value as a key task. "There is no dedicated PR team and the crisis management system is lacking. The organization has grown, but its substance is weak," he said. "Every initiative, from rookie song camps to welfare for senior members, must be built on trust." Regarding the establishment of a welfare foundation, he stated, "It is difficult to cover both welfare and operations with the existing budget alone," and revealed that he is considering a model that links external resources such as government R&D and corporate sponsorships.

When asked if he intends to suspend his creative work during his term, he replied, "I might be able to work on some remake projects, but my role as president takes priority," adding, "When I meet with members, my sense of responsibility only grows. I will not lose that mindset."

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