Promotional image showcasing the upcoming auction of NCT Dream's "ANL" copyright / Screenshot from Musicow's official website
Logo of Musicow / Courtesy of Musicow
Musicow, a music copyright trading platform, announced on Friday its plan to auction the copyrights for a song by NCT Dream. If financial authorities approve Musicow's submitted application for music asset tokenization, the platform will become the first in the industry to resume operations.
The service, allowing investors to buy portions of music copyrights, gained popularity among young people during the pandemic. However, in April 2022, financial authorities ordered a halt of the service, citing its similarity to securities. It then directed Musicow and other similar platforms to legally register as a securities business before proceeding with asset tokenization.
The music to be auctioned is "ANL" by the K-pop boy group NCT Dream, a track from their first official album, "Hot Sauce." Musicow said it plans to appeal to both financial investors and cultural consumers with the NCT Dream song, which enjoys a global fan base.
The auction is scheduled to take place from Dec. 8 and Dec. 14, if financial authorities find no grounds for disqualification.
The market capitalization of the song will be determined based on the copyright royalty income ratio of similar groups and annual copyright royalty data of songs slated for listing. This value estimation process is subject to verification by external agencies such as accounting firms to ensure objectivity, according to the company.
However, the Financial Supervisory Service (FSS) has expressed concerns, clarifying that public announcements are not indicative of official approval. On Friday, some local media reports suggested that Musicow has received final approval from financial authorities.
"The FSS has not yet approved the application, and the date for auction remains unconfirmed," an official from the FSS told The Korea Times.
"Upon receiving an application, the FSS conducts a 15-day review of the documentation. If we identify consumer protection issues or find the information inadequate, we will request further clarification, which could lead to a delay in the previously announced auction date. The auction plans can only proceed if no issues are found."
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