The Korea Music Copyright Association (Chairman Chuga Yeol, hereinafter referred to as ‘KMCA’) expressed deep regret regarding the Ministry of Culture, Sports and Tourism (hereinafter referred to as ‘MCST’) insisting on announcing the ‘2024 Music Sector Copyright Trust Management Organization Inspection Results’ on the 3rd before the launch of the new government, and proceeding with the announcement without an extension of the explanation period, which is unusual.
KMCA pointed out that the results were first disclosed through the media. The MCST distributed a press release to the media before notifying KMCA of the final results at 8 AM on the 3rd. The association stated that it received the notification of the results around 5 PM on the same day. In response, KMCA criticized that “political considerations took precedence over the accuracy and objectivity of the inspection.”
The association explained that many items in the disclosed inspection content were either factually incorrect or excessively interpreted. The MCST raised issues regarding ▲conflicts of interest ▲public contracts ▲election management ▲budget preparation ▲regular member system, but KMCA stated that many of these items were factually incorrect or unilaterally interpreted and included content that infringes on the inherent rights of private organizations.
Regarding the claim that the self-development expenses item was newly established without approval from the general meeting or board of directors, KMCA clarified that the budget was formally prepared through internal procedures such as the budget subcommittee, board of directors, and general meeting, and that the assertion of being established without approval is completely false. Additionally, regarding the use of a corporate card at a golf course, it explained that the costs incurred were from using a car wash facility attached to the golf course, not the golf course itself.
Furthermore, the association pointed out that the welfare point payment item and beautification expenses executed for employee welfare are generally implemented as common welfare systems in both public institutions and private enterprises, yet they were exaggerated in reports as if the association had misused the budget. It also refuted the description of the location as a ‘massage parlor,’ stating it is simply an acupressure treatment facility.
In response to allegations that some executives gained undue benefits by contracting with related companies, the association stated, “The contract was conducted in accordance with legal procedures, and the service fees were properly paid to performance staff, etc.” It also mentioned that the music used in the advertising video was a song proposed by the advertising agency, and the executive in question waived their personality rights fee, contributing to additional budget savings. It added that the contract occurred before the application of the ‘Public Official Conflict of Interest Prevention Act’ in January 2025.
Regarding public contracts, it stated, “We relaxed bidding conditions or entered into negotiated contracts to clarify defect repair responsibilities and prevent repeated failures,” and that “the standards of the Public Procurement Service were unreasonably applied to private organizations.”
While KMCA agrees that the MCST inspection itself can contribute to enhancing transparency and publicness, it expressed regret over the hasty announcement of significant matters without sufficient opportunity for explanation. It raised questions about the background of forcibly pushing through the inspection, as the essence of the inspection does not change just because it was announced after the presidential election.
KMCA stated that it had already conducted a fact-finding survey and self-inspection led by its internal management diagnosis office regarding some issues pointed out in this inspection, and had begun self-corrective measures to identify related problems. It is also pursuing structural innovations to enhance the reliability and transparency of operations, such as overhauling the outdated computer system and introducing an AI-based next-generation system. It is working on improving the overall organizational structure of the association by regularly publishing transparency reports and institutionalizing internal diagnosis systems.
KMCA emphasized that these efforts are part of a long-term reform aimed at securing sustainable transparency and fairness, not a one-time response, and stated that it will continue to become an organization that meets the trust of its members and the public through regular self-inspections and institutional improvements.
[Kim Mi-ji, Star Today Reporter]
