South Korean Film Industry Agrees to Cap Actor Fees for State-Backed Films
SEOUL — Film producers and major talent agencies in South Korea have agreed to cooperate in capping actors' appearance fees at below 10 percent of net production costs for state-backed mid- and low-budget films, according to announcements made Thursday. The move is part of broader efforts to revive the country's struggling film industry, which has been hit by declining theater audiences and worsening profitability amid the expansion of streaming platforms.
The agreement was signed at the National Museum of Modern and Contemporary Art in Seoul, the Ministry of Culture, Sports and Tourism and the Korean Film Council (KOFIC) confirmed. Under the non-binding deal, the government, agencies, and producers will work together to ensure that fees for lead and supporting actors in films financed by KOFIC's support program remain below the 10 percent threshold.
The initiative comes as actors' pay has been identified as a primary driver of the mounting financial burden on the film industry. According to data from KOFIC, appearance fees accounted for 18 to 19 percent of the average 9.5 billion-won production budget in 2024, representing nearly half of all labor expenses.
The parties also plan to form an industry-led consultative body, including agencies, production companies, and distributors, to discuss longer-term measures to improve the filmmaking environment. Participants include leading talent agencies such as BH Entertainment, Management Soop, and J.Wide-Company, along with the Korea Film Producers Association and the Producers Guild of Korea.
Speaking at the signing ceremony, Culture Minister Chae Hwi-young described the voluntary move as going beyond cost-cutting, calling it "a warm sense of solidarity and a courageous, mature decision" to help revive Korean cinema.
KOFIC Chairman Han Sang-jun said support for mid-budget productions would serve as "a catalyst for diversity and sustainable growth" in the local film industry amid rising production costs and shrinking investment.
Son Seock-woo, chief executive of BH Entertainment, said the industry should take the opportunity to address structural imbalances and build a healthier ecosystem.