Historic Licensing Deals Reshape K-Pop Royalty Distribution in China
Major progress has been achieved in protecting Korean music copyrights within China’s digital market through landmark agreements between the Korea Music Copyright Association (MCSC) and China’s leading music platforms. Reports indicate new usage fee contracts have been finalized with Tencent Music Entertainment and NetEase Cloud Music – China’s two largest digital music service providers.
Structural Improvements to Royalty Systems
The agreements address long-standing structural challenges in how Korean music royalties are tracked and distributed in China’s streaming market. Under the new framework, usage fees collected in China for Korean copyrighted works will be systematically verified and remitted to rights holders through improved monitoring systems.
Park Hak-ki, former vice-chairman of MCSC and current Key Producer at A2O Entertainment, played a pivotal role in facilitating these negotiations. During recent discussions with Tencent Music executives, Park emphasized the need for transparent operational structures and equitable distribution processes.
Key Agreement Details
The finalized contracts include two landmark deals:
• A November 2025 agreement with Tencent Music establishing progressive royalty rates
• A September 2025 contract with NetEase Cloud Music featuring simplified fee structures
These agreements include provisions for retroactive application to certain historical usage periods and create frameworks for future negotiations. The cooperation received support from China’s National Copyright Administration and international copyright organization CISAC.
Market Impact and Future Outlook
The new contracts mark a significant shift from previous limitations in royalty verification and distribution. Analysis shows they establish direct cooperation channels between Korean copyright administrators and Chinese platform operators, enabling more accurate tracking of music usage data.
The newly elected 25th chairman of MCSC stated: “These agreements create practical solutions to systemic challenges. By leveraging our partners’ technological capabilities and market insights, we’ve established mechanisms that should significantly improve royalty accuracy and distribution efficiency.”
Industry observers note these developments come as Chinese authorities have increasingly emphasized the importance of comprehensive copyright management systems. The agreements position MCSC to implement more responsive verification processes and minimize royalty distribution gaps moving forward.
