Specialists in the music industry have disclosed the explanation behind Rosé deciding to leave the Korean Music Copyright Association (KOMCA) in 2024.

Information from insiders indicates that the unequal sharing of earnings from music streaming has emerged as a significant issue in South Korea. In comparison to other nations, music creators in Korea obtain notably smaller portions of the revenue generated by their music. The most recent report reveals that Korea allocates 10.5% of streaming revenue to the songwriters themselves—2-5% less than the US (12.3%), the UK (16%), and Germany (15%). Conversely, domestic streaming platforms like Melon claim a more substantial percentage of the profits (35%) compared to other prominent advanced countries such as the US, UK, Germany, and Japan (averaging 30%).

These figures demonstrate a marginal improvement over the years. In 2008, platforms like Melon seized over 57% of the profit, leaving songwriters with just 5%.

According to experts, the crux of the issue lies in the excessive involvement of numerous intermediaries in revenue distribution. Music earnings must pass through several copyright management organizations and other rights holders before reaching the original songwriters. In contrast, in other countries, revenue is usually divided solely between the artist and their publisher, granting the artist a greater share.

The primary reason for the diminished earnings of Korean songwriters is the prevalence of mandatory ‘management fees’ paid to management companies instead of the revenue going directly to the creatives.

This financial dynamic led Rosé to withdraw from KOMCA. Since her music generates revenue both domestically and internationally, she is obligated to pay fees to an international music publisher as well as a domestic publisher. These additional fees can reduce her revenue share by as much as 30%.