Seoul: Film producers and major talent agencies have agreed to cooperate to cap actors' appearance fees at below 10 percent of net production costs for state-backed mid- and low-budget films, in a bid to revive the country's struggling film industry, the culture ministry said Thursday.
According to Yonhap News Agency, the Ministry of Culture, Sports and Tourism and the Korean Film Council (KOFIC) announced that the agreement would be signed in the afternoon at the National Museum of Modern and Contemporary Art in Seoul. Under this non-binding arrangement, the government, along with agencies and producers, will work collaboratively to ensure that fees for lead and supporting actors in films financed by KOFIC's program for supporting mid- and low-budget films remain below the specified 10 percent threshold.
Actors' pay has been a significant factor contributing to the mounting financial challenges faced by the film industry, which is already dealing with declining theater audiences and diminishing profitability due to the rise of streaming platforms. Data from KOFIC reveals that these fees made up 18 to 19 percent of the average 9.5 billion-won production budget in 2024, representing nearly half of all labor expenses in the industry.
The parties involved also plan to establish an industry-led consultative body, which will include agencies, production companies, and distributors, to discuss longer-term measures to enhance the filmmaking environment. Participants in this initiative 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.
The culture ministry emphasized that the agreement reflects voluntary participation by actors and talent agencies, supporting the government's initiative to revitalize Korean cinema. The government introduced the film support program in 2025 with a 10 billion-won (US$6.7 million) fund, which has been expanded to 46 billion won this year.
Culture Minister Chae Hwi-young stated in a release, "We will spare no policy support to ensure that the government's financial backing and the film industry's commitment to mutual growth generate a synergistic effect, enabling Korean cinema to rebound." KOFIC Chairman Han Sang-jun urged for joint efforts to create a healthier production environment, recognizing mid- and low-budget films as "the backbone" of the industry's diversity and future.