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K-Content Going Global: The Role of Trade and Copyright Policies
- Author Hyunsoo Kim
- Series321
- Date2025-08-07
As digital transformation accelerates, the ways we engage with content are also evolving. For most types of content—such as music, movies, games, and books—we no longer rely on physical formats. Not only consumption patterns, but also the production and distribution processes themselves are becoming increasingly digital. As content becomes digitized, an environment has emerged where it can be easily delivered across borders. Digital content, being an intangible asset, is free from physical constraints and easily replicable, making it readily distributable around the world. Consequently, trade in digital content is playing an increasingly important role in the global economy, with various forms of creative works and information being supplied transnationally. The total size of digital trade, including digital content, amounted to between USD 800 billion and USD 1.5 trillion in 2019, representing 3.5–6.0% of global trade. It is projected that up to 70% of global trade flows could be influenced by digitalization in the future.
The expansion of digital content trade has brought with it growing concerns over copyright infringement. Due to the inherent characteristics of digital content, unauthorized copying and distribution are relatively easy, and preventing further infringement becomes difficult once it begins. Illegal copying and unauthorized dissemination not only violate the rights of creators but also negatively impact the growth of the content industry. In particular, unauthorized distribution via illegal streaming, file-sharing networks, and various social media platforms undermines the economic value of digital content, discouraging investment in innovation and making it harder for new players to enter the market. Major countries such as the United States regard the unauthorized use and distribution of digital content as a key barrier to digital trade. For example, the U.S. Trade Representative (USTR) identifies intellectual property (IP) infringement as one of the major trade barriers in its annual National Trade Estimate Report on Foreign Trade Barriers. The report points out that when a country's legal framework provides insufficient protection of IP rights, this can lead to widespread copyright infringement of digital content, thereby limiting the profitability and commercial viability of digital content providers.
Against this backdrop, the protection of intellectual property rights (IPRs) in digital content trade has emerged as a critical issue not only in economic terms but also in social and cultural dimensions. Protecting IPRs is essential for ensuring fair compensation to creators and content producers, thereby fostering creative activity. It also plays a vital role in preserving and promoting cultural diversity and is regarded as a key factor for the sustainable growth of the content industry. In response, many countries are stepping up legal and institutional reforms to strengthen IPR protection in digital content. However, differences in the content and level of national laws and regulations continue to undermine consistent global protection of IPRs in digital content trade. In this context, there is a growing need not only for the improvement of national legal systems but also for the international dissemination and harmonization of IPR protection standards.
From the perspective of promoting trade, it is essential that both exporting and importing countries strengthen intellectual property rights (IPR) protection. International efforts to strengthen IPR protection primarily take place through bilateral trade agreements. FTAs that include IPR provisions related to digital content began to increase in the 2000s, and since the mid-2000s, FTAs that include such provisions have outnumbered those that do not. Before 2000, the number of FTAs containing digital content-related provisions was in the single digits, accounting for only about 10% of all FTAs in force at the time. However, entering the 2000s, more FTAs began to focus on IPR issues concerning digital content, and the proportion of FTAs in force that include such provisions has steadily increased over time. The level of provisions has also evolved continuously. While early FTAs often included only declarative clauses on intellectual property rights in general, more recent agreements have begun to incorporate concrete and enforceable provisions specifically related to copyrights and related rights.
More recently, FTAs have begun to include specialized provisions for the protection of copyrights in digital content. The most notable example can be found in the UK-Australia FTA. The UK-Australia FTA includes a dedicated sub-chapter titled “Enforcement in the Digital Environment” within its intellectual property rights chapter, reflecting both parties’ commitment to addressing IPR enforcement challenges online. This sub-chapter sets out provisions regarding the liability of Internet Service Providers (ISPs), including disclosure of subscribers’ information to right holders in legally substantiated cases of copyright or trademark infringement. It also contains provisions regarding blocking orders for limiting access to infringing websites, even when the servers are located outside the Party’s territory. The sub-chapter also includes highly robust enforcement provisions such as suspension of domains engaged in IPR violations, especially within their country-code top-level domains.
Korea has continuously made efforts to secure overseas markets and enhance industrial competitiveness. As a result, it has concluded 22 FTAs with 59 countries, opening markets and committing to the improvement of intellectual property rights (IPR) protection systems with most of its major trading partners, including the United States, China, and the European Union. In addition, the government is actively pursuing trade agreements with around 10 more countries, including those in Africa where FTAs have yet to be established, thereby continuing its FTA policy. The growing market for digital content and trade volume are accompanied by the international spread of IPR protection for digital content, and one of the main channels driving this spread is through FTAs. Strong IPR provisions for digital content in FTAs are no longer limited to agreements among high-income countries. FTAs with middle- and lower-income countries are also increasingly including more robust IPR protection measures. Moreover, the strengthening of IPR protection through FTAs has been shown to have a positive effect on digital content trade. Given the rapid expansion of Korea’s digital content market and trade, such trade policy tools—including FTAs—can play a valuable role in sustaining this upward trend.
Ph.D., Research Fellow, Head of Trade Agreement Team
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