South Korean musicians are expected to see significantly improved royalty payments from China after the country’s main copyright authority secured new licensing agreements with its two largest digital music platforms, according to the Korea Music Copyright Association (Komca). Komca said the Music Copyright Society of China (MCSC) finalized deals with Tencent Music and NetEase Cloud Music, a shift that could unlock long‑delayed income for Korean rights holders in the world’s fifth-largest recorded‑music market.

MCSC, which administers music rights in China under a reciprocal representation agreement with Komca, has long faced regulatory and data‑tracking challenges that complicated accurate collection and settlement for Korean works. Komca officials held working‑level consultations with MCSC through 2025, including on‑site meetings in Beijing to improve data exchange and clarify licensing coverage.

A breakthrough followed in September and November 2025, when MCSC signed licensing agreements with NetEase Cloud Music and Tencent Music, respectively. Both deals include retroactive coverage for past usage, a key provision aimed at closing historic settlement gaps.

The scale of the two platforms shows why the new licences matter. Tencent Music reported 121.0 million paying users in Q4 2024 and generated Rmb15.23 billion (US$2.17 billion) in music subscription revenue in 2024, part of Rmb28.4 billion (US$4.05 billion) total revenue that year. NetEase Cloud Music disclosed Rmb5.4 billion (US$769 million) in online music services revenue for 2024, including Rmb4.5 billion (US$641 million) from membership subscriptions, as part of Rmb8 billion (US$1.14 billion) total revenue.

China’s market context adds further weight. IFPI’s latest global industry data shows China ranked fifth worldwide for recorded‑music revenues in 2024, reflecting its growing importance for international rights holders, including Korean composers and producers. Meanwhile, China’s broader internet landscape continues to expand: official statistics from CNNIC reported 1.12 billion internet users as of mid‑2025, indicating a vast addressable audience for licensed music consumption.

Komca, which distributes royalties received from MCSC to its members, said the latest agreements lay the foundation for more transparent and timely payments.

- Cathy Li