The company released a statement saying,
We are writing to let you know our stance on the 'Kwon Ji Yong USB', which will be released on June 19th, on the Gaon Chart.
First, the Gaon Chart that is a public music chart in Korea, was first established in 2010. We have set data collection regulations and chart types and have been maintaining our first policy since then.
We cannot consider the 'album' that the media is talking about to be the same as the 'album' as Gaon Chart has been defining it.
The copyright law was revised on September 23rd, 2016 to say that an 'album' is something physical with music on it, but also includes digital matter. Easily explained, according to the copyright laws, an 'album' is an 'album' even if it's on a CD, a tape, an LP, or a USB. Therefore, in matters of the copyright, the 'Kwon Ji Yong USB' can be considered an 'album'.
However, the Gaon Chart's definition is different, and we limit it only to accounts where music is bound to a physical object. (We apologize for not specifically writing this in our policies).
This is because if we consider 'digital music' as 'albums' as well, the walls between Gaon Chart's digital chart, download chart, and album chart will all be destroyed.
It is difficult to predict a new format of media, or the type of music products produced through these, and there are cases where the laws, regulations, and policies cannot properly follow the trends. We beleive that Gaon Chart must include new media into the policies that have been regulated since 2010, but we have made this decision through our founding regulations.
Second, Gaon Chart has decided that the 'Kwon Ji Yong USB' is actually a download service according to copyright laws. Because of this, we will reflect sales of the product into the digital and download charts.
We will cooperate with YG Entertainment to receive data related to this. The downloads from this product will be considered the same as the downloads from the other download services that Gaon considers.
This is just a temporary decision for now, and we will be conferring with the Ministry of Culture and Sports as well as the popular music industry on creating new chart categories and having new media products be reflected uniformly on the charts.
However, when the music is on the USB [instead of a download code like the 'Kwon Ji Yong USB'], we will consider it an album.
Third, the 'Kwon Ji Yong USB' is a product that is difficult to consider through the media that has been released so far. Because of this, we thought a lot about the effects it would have on maintaining the Gaon Chart's policies if considered an 'album'.
However, even by taking on controversy of whether it is an album or not, it is a message to the Korean popular music industry, and through this, the USB will be in the spotlight as a new, effective media that can replace the CD.
We at Gaon Chart show our active support to Kwon Ji Yong and YG Entertainment for the challenge they threw into the music market that has been fixed for decades.
Gaon Chart as well as the Korea Music Content Industry Association that manages the chart will do our best to improve the music industry environment.
What do you think about their announcement?