Riding the K-Pop Wave: BTS, BLACKPINK and More Catapult Global Royalties

K-Pop artists are taking the world by storm, their influence evident in the growing international demand for K-pop content. Dominating the music scene in Asia, North America, and beyond, groups like BTS and BLACKPINK are igniting a wave of global consumption.

As per the Korean Music Copyright Association (KMCA) on the 29th, the royalties from overseas music copyrights amounted to approximately 220 billion KRW ($196 million) in 2022, marking a rise of around 40 billion KRW ($36 million) from the previous year.

Data from last year shows that K-Pop consumption has been increasing in various regions: Asia contributing 146 billion KRW (66%), Europe with 36 billion KRW (16.3%), North America contributing 32 billion KRW (15%), and other regions with 6 billion KRW (2.7%). Compared to the amounts collected in 2021 from Asia (124 billion KRW), North America (30 billion KRW), and Europe (26 billion KRW), these figures represent an overall increase.

Domestic music platforms also reveal the significant influence of K-Pop artists. According to Genie Music, one of the major music platforms, overseas music sales have increased on average by 62% annually over the past five years. Sales climbed from 3.5 billion KRW ($3.1 million) in 2018 to a staggering 241 billion KRW ($215 million) in 2021, invigorating the music market. In 2021, the company hit a record high with a whopping 285 billion KRW ($254 million).

Spotify, the world's largest streaming service, has reported that their 'Most Listened to K-Pop of 2022' playlist, featuring BTS, BLACKPINK, TWICE, Stray Kids, and others, amassed an astonishing 165 billion streams, a 56% and 20% increase compared to 2020 and 2021, respectively, reinforcing K-Pop's steady global growth.

A representative from a major K-Pop agency explains, "As well as sales of K-Pop artists' albums abroad, streaming numbers are also on the rise. While recent years have seen restrictions on local activities due to COVID-19, fans' longing is manifesting in increased streaming, hence, resulting in a surge in overseas copyright royalties."

Specific copyright royalties for each artist can only be calculated by the copyright holder of the music. Also, given that we are in the first half of the year, it's still early to settle overseas copyright royalties. Nevertheless, a representative from the KMCA predicts, "As K-Pop artists' overseas activities have been high since the beginning of this year, it is expected that overseas copyright royalties will increase compared to the previous year."

New K-Pop girl group FIFTYFIFTY has proven that foreign fans' interest in K-Pop can translate into streaming demand. The group has entered the US Billboard 'Hot 100' charts for nine consecutive weeks, showcasing their exceptional streaming power. As a new group, their album sales are relatively low, but their chart success is predominantly due to streaming, which in turn translates into copyright royalties.

The settling of FIFTYFIFTY's overseas music copyright royalties will take around six months due to differing standards and methods between countries and local circumstances. As singers, FIFTYFIFTY also receives copyright royalties, and representatives have expressed anticipation for substantial royalty earnings given the high level of overseas streaming.

The sustained increase in international interest in K-Pop and K-Content during the pandemic has contributed to a substantial rise in the collection of overseas copyright royalties.

A KMCA representative explains, "As many K-Pop artists have increased their overseas activities, naturally, the collection of overseas copyright royalties has also increased. The fact that K-Pop music is being consumed more due to the popularity of K-Content has also contributed partly to the overseas copyright royalties. As K-Pop has a presence overseas, continuous streaming has become possible, rather than just one-off consumption."

The global success of K-Pop artists has not only led to an increase in overseas music copyright royalties but also a significant boost in overall Korean music copyright sales. According to the KMCA, the total copyright royalties collected have been steadily increasing over the past five years, exhibiting a 75% growth rate. Starting with 2,034 billion KRW ($1.8 billion) in 2018, the figures rose to 2,208 billion KRW ($1.9 billion) in 2019, 2,487 billion KRW ($2.2 billion) in 2020, 2,885 billion KRW ($2.6 billion) in 2021, and 3,554 billion KRW ($3.2 billion) in 2022. This clearly demonstrates why the future of K-Pop lies on a global scale.

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