The association immediately removed the official from their post and placed them on administrative leave.
An extraordinary board meeting and further investigations are planned, along with possible civil and criminal action.
Structural changes are needed to restore member trust and strengthen internal controls.
“An Association That Lost Trust — What Went Wrong?”
Incident overview.
The Korean Music Copyright Association (KOMCA) represents music creators and handles the collection and distribution of music royalties.
However, the recent revelation that two senior secretariat staff allegedly abused their positions calls the association’s core functions and credibility into question.
KOMCA promptly removed the staff from their duties and placed them on administrative leave, and it convened an emergency board meeting to discuss next steps.
Meanwhile, the association has pledged transparent follow-up: a full investigation, and civil and criminal proceedings depending on the results.
Chairman Cha Gue-yeol publicly apologized to members and pledged a swift, fair investigation.
This episode is not merely an individual scandal. Rather, it exposed weaknesses in oversight and conflict-of-interest safeguards.
To restore confidence, transparent processes must run alongside realistic policy reforms.
Why it became a problem.
When two senior officials set up an external company and directed contracts between KOMCA and a specific vendor, that was a clear conflict of interest (when personal gain unduly influences official decisions).
The association’s rules and ethics code exist to protect the public interest and members’ rights.
However, when those with power use insider knowledge or design transactions for personal profit, they reveal institutional vulnerabilities.
Thus, this is more than criminal misconduct by individuals; it points to structural flaws in the organization.
Transparency is especially critical where royalties are collected and distributed.
Therefore, controls such as financial oversight, contract review, and regular disclosure of external transactions are essential.
Yet this incident shows those safeguards did not work effectively.
Short-term personnel moves alone will not be enough; systemic fixes are required.
Are KOMCA’s actions appropriate?
Supporters argue that removing the officials and placing them on leave was the right emergency response to prevent further harm.
Moreover, holding an open board meeting and promising investigation are positive first steps toward transparency.
While legal proceedings run their course, the association needs to pursue internal discipline and civil/criminal accountability to demonstrate responsibility to members and the public.
At the same time, KOMCA has announced intentions to revise its ethics code and consider outside oversight as part of institutional reform.
Proponents say the scandal can become an opportunity for internal reform.
If KOMCA completes a prompt, public investigation and follows it with stronger rules, it can recover much of its credibility.
In addition, the case could set a precedent for other copyright bodies, encouraging industry-wide improvements in transparency.
Therefore, the initial responses and stated reform intentions merit cautious approval.
Critical perspectives.
Critics insist this is not merely a few individuals’ misconduct.
Misconduct at senior levels highlights weaknesses in oversight and organizational culture.
The use of an outside company to steer contracts and siphon funds suggests systemic opportunities for abuse.
Consequently, firing or investigating a few people will not resolve deeper problems.
Critics break down the structural causes with concrete examples.
For instance, concentrating contract review in a single decision channel, a lack of independent auditing, and opaque executive appointments can together enable senior officials to misuse power.
In one musicians’ organization, internal audit functions existed only on paper while actual control rested with the executive team.
Under such arrangements, deals with outside companies can proceed unnoticed for a long time.
Therefore, deep redesign of systems, the creation of external oversight bodies, and stronger member-led monitoring are essential.
Also, transparency must go beyond filing reports. It must mean open access to real data and meaningful access for stakeholders.
For example, publishing royalty distribution details, contract review notes, and audit findings regularly — and granting external auditors real authority — will make transparency tangible.
Absent these changes, repeated apologies and one-off sanctions will not restore trust.
Ultimately, enforceable reforms are needed to solve root causes.
Redesigning internal control.
Improving controls requires action on three fronts at once: organizational design, procedural transparency, and cultural change.
First, rethink organizational structure to disperse authority and add multi-step approvals.
Contract decisions should require at least two independent review channels, and major deals should be reported to the board.
Second, procedural transparency should be built on documentation and public disclosure.
Specifically, strengthen conflict-of-interest declaration requirements before contract initiation, and log the history and benefits of any transaction with an external company.
To protect audit independence, broaden member involvement in selecting external auditors and publish audit results on a regular schedule.
Third, cultural change starts with training and incentives.
Run regular ethics education and upgrade whistleblower protections to legal standards so insiders can safely report wrongdoing.
In the long run, restoring trust depends on transparent procedures and genuine member participation.
These reforms will take time and money, but they are investments to recover the association’s mission and protect creators’ rights.
Only after members and the public regain confidence can KOMCA fulfill its responsibilities effectively.
Legal and social consequences.
KOMCA has signaled it will pursue civil and criminal remedies.
As legal processes unfold, individual culpability will be clarified and organizational responsibility will become easier to define.
If criminal convictions occur, those involved will face severe legal consequences, but the priority should be sealing the policy gaps that allowed the abuse.
Public demand for transparency and accountability in copyright organizations is likely to grow.
The fallout may also affect regulators and lawmakers.
Supervisory agencies such as the Ministry of Culture, Sports and Tourism may review oversight standards for membership-based non-profits.
There is potential for new laws that require stronger internal controls or mandatory external oversight for non-profit associations that manage royalties.
Such regulatory changes would reshape how similar organizations operate nationwide.
Members and public view.
Members expect their association to represent their rights fairly.
But this incident has shaken that expectation and prompted some members to demand transparency in fee and royalty handling.
That pressure could push KOMCA toward more democratic, participatory governance.
The public is also watching.
Loss of trust in copyright agencies can harm the music industry’s broader ecosystem.
If consumers suspect unfair royalty handling, it may alter how music is distributed and consumed.
Therefore, KOMCA must offer concrete proof of change, not just internal fixes.
Practical recommendations.
Short term: launch a transparent investigation and bring in an external auditor quickly.
Medium term: update rules and the ethics code, and formalize a conflict-of-interest reporting system.
Long term: change organizational culture through training and create member-driven governance models.
These layered steps are necessary to prevent recurrence and rebuild trust.
Concrete measures include documenting contract decisions, ensuring audit independence, increasing external expert participation, and publishing regular disclosure reports.
Also, strengthen whistleblower protection with legal guarantees and define clear sanctions for violations.
Only with these combined measures can KOMCA restore its role effectively.
Conclusion and suggestions.
The KOMCA case reminds us why trust and internal controls matter.
While the association’s quick emergency response is positive, without deep reforms the risk of recurrence remains high.
Therefore, legal action should be matched with stronger transparency, external oversight, and expanded member participation.
The key is not merely punishment but structural reform.
To regain members’ and the public’s trust, KOMCA must show tangible, visible change.
What should the association prioritize first in your view?
