A significant agreement aimed at fostering a healthier Korean film industry was officially signed in Seoul at the National Museum of Modern and Contemporary Art. This landmark pact was spearheaded by the Ministry of Culture, Sports and Tourism and the Korean Film Council (KOFIC).
This non-binding agreement outlines a collaborative effort between the government, talent agencies, and film producers. Their collective goal is to cap actor fees for both lead and supporting roles at under 10 percent of the total production budget for films receiving support from KOFIC’s dedicated program for mid- and low-budget productions. This initiative seeks to manage escalating film production costs.
Actor remuneration has significantly contributed to the mounting financial pressures faced by the Korean film industry. This sector is already contending with shrinking theater audiences and diminished profitability, largely attributable to the rapid expansion of streaming platforms. KOFIC data for 2024 revealed that actor fees constituted 18 to 19 percent of an average 9.5 billion-won production budget, nearly half of all labor expenses for a film.
Beyond immediate cost management, the participating parties intend to establish an industry-led consultative body. This group, comprising talent agencies, production companies, and distributors, will convene to strategize long-term solutions for enhancing the overall filmmaking environment within Korea.
Key participants in this initiative include prominent talent agencies such as BH Entertainment, Management Soop, and J.Wide-Company. They are joined by influential industry associations, including the Korea Film Producers Association and the Producers Guild of Korea, signaling broad industry support.
The Culture Ministry emphasized that this agreement underscores the voluntary commitment from actors and talent agencies, aligning with the government’s strategic efforts to revitalize Korean cinema. The government initially launched its film support program in 2025 with a 10 billion-won (US$6.7 million) fund, which has since been significantly expanded to 46 billion won this year to bolster film production.
During the official signing ceremony, Culture Minister Chae Hwi-young conveyed profound appreciation for this voluntary pledge. He stated that the decision to cap actors’ fees transcends mere cost-cutting, embodying “a warm sense of solidarity and a courageous, mature decision” vital for the revival of Korean cinema.
Minister Chae asserted, “This wave of cooperation will become the most powerful energy in successfully bringing audiences back to Korean films.”
KOFIC Chairman Han Sang-jun highlighted that bolstering mid-budget productions through this support would act as “a catalyst for diversity and sustainable growth” within the local film industry, particularly crucial amidst escalating production costs and dwindling investment.
Son Seock-woo, Chief Executive of BH Entertainment, urged the industry to seize this opportunity to rectify structural imbalances and cultivate a healthier ecosystem. He expressed his hope: “I hope today’s agreement will serve as a first step in discussing how to create an industry that can endure together over the long term.”
