Korean Film Industry Caps Actor Fees to Revitalize Mid-Low Budget Productions
In a significant move to bolster the struggling Korean film industry, the Ministry of Culture, Sports and Tourism along with the Korean Film Council (KOFIC) announced a landmark agreement. This pivotal non-binding deal, signed in Seoul at the National Museum of Modern and Contemporary Art, aims to stabilize production costs and foster sustainable growth within the cinematic landscape.
Under the terms of this voluntary agreement, key government bodies, talent agencies, and film producers will collaborate to cap the fees for lead and supporting actors. Specifically, for films financed through KOFIC’s dedicated program supporting mid- and low-budget productions, actor remuneration will remain below a 10 percent threshold of the total budget.
This initiative directly addresses a primary financial challenge facing the Korean film industry: escalating actor fees. With declining theater audiences and reduced profitability exacerbated by the rise of streaming platforms, controlling production expenses has become critical. KOFIC data for 2024 revealed that actor fees alone constituted 18 to 19 percent of the average 9.5 billion-won production budget, accounting for nearly half of all labor-related costs.
Looking beyond immediate measures, participating parties are also set to establish an industry-led consultative body. This group, comprising agencies, production companies, and distributors, will explore longer-term strategies to enhance and improve the overall filmmaking environment in Korea.
Notable participants in this crucial endeavor include leading talent agencies such as BH Entertainment, Management Soop, and J.Wide-Company, alongside influential bodies like the Korea Film Producers Association and the Producers Guild of Korea.
The Ministry of Culture emphasized that this agreement underscores the voluntary commitment from actors and talent agencies to support the government’s broader vision of revitalizing Korean cinema. The government’s film support program, initially launched in 2025 with a 10 billion-won (US$6.7 million) fund, has significantly expanded to 46 billion won this year, demonstrating sustained commitment.
Culture Minister Chae Hwi-young affirmed, “We are committed to providing comprehensive policy support, ensuring that the government’s financial backing and the film industry’s dedication to mutual growth create a powerful synergistic effect, enabling Korean cinema to not just survive but thrive once more.”
Echoing this sentiment, KOFIC Chairman Han Sang-jun called for concerted efforts to cultivate a healthier production environment. He highlighted the indispensable role of mid- and low-budget films, terming them “the backbone” vital for maintaining the industry’s diversity and securing its future.
