Korea University Study Finds Music Investment Platform Reflects Rational Economic Judgments
SEOUL, SOUTH KOREA – A new study published in Economics Letters by researchers at Korea University business School confirms the music investment platform, Music Cow, operates as a financial market driven by rational investment decisions based on economic fundamentals, rather than solely fan enthusiasm. the research, conducted by Ko Byung-wan (IS), Park Jin-kwan (Treasury), and Kim Jae-hwan (Marketing), analyzed music securities pricing data and artist popularity indicators before and after the platform’s products were classified as securities under the Capital Market Law in 2022.
The study revealed that while music securities typically exhibit a “popularity premium” linked too strong fandoms – reflecting the expectation of long-term royalty streams – price sensitivity to market shocks increased after the regulatory judgment. This suggests investors began evaluating securities based on economic factors rather than emotional attachment,indicating a shift towards a more mature investment market.
“Contrary to some concerns about new investment products,investors are making reasonable decisions that are not much different from existing investment products,” stated Professor Ko Byung-wan of Korea University.”If the law and institution are well supported so that reasonable investors can be well protected, and the trading habitat is further improved, new investment products can be a catalyst to grow in the financial market.”
The findings demonstrate that Music Cow users are participating for genuine investment purposes, moving beyond purely fan-based activity. A Music Cow official stated the company views the post-regulatory period as an “undervalued phase” following a rational market reassessment and is currently preparing for formal regulatory approval. The research supports the platform’s function as a legitimate trading market for investment products.