Seoul: Film producers and major talent agencies have reached an agreement to cap actors' fees at below 10 percent of net production costs for state-backed mid- and low-budget films. This decision aims to rejuvenate the country's struggling film industry, particularly as it faces challenges from declining theater audiences and the rise of streaming platforms.
According to Yonhap News Agency, 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) will collaborate with agencies and producers to ensure that actors' fees in films financed by KOFIC's program remain within the agreed threshold. Previously, these fees accounted for 18 to 19 percent of a typical 9.5 billion-won production budget, nearly half of all labor expenses.
In addition to the agreement, an industry-led consultative body will be formed, comprising agencies, production companies, and distributors, to explore long-term measures for improving the filmmaking environment. The participants include leading talent agencies such as BH Entertainment, Management Soop, and J.Wide-Company, as well as the Korea Film Producers Association and the Producers Guild of Korea.
The culture ministry emphasized that the agreement reflects the voluntary participation of actors and talent agencies in supporting the government's efforts to revitalize Korean cinema. The government initially introduced the film support program in 2025 with a 10 billion-won fund, which has since expanded to 46 billion won this year.
During the signing ceremony, Culture Minister Chae Hwi-young praised the pledge, highlighting its significance beyond mere cost-cutting. He noted that the voluntary move demonstrates "a warm sense of solidarity and a courageous, mature decision" to aid in the revival of Korean cinema. Chae expressed optimism that this cooperative effort would draw audiences back to Korean films.
KOFIC Chairman Han Sang-jun stated that the support for mid-budget productions would promote "diversity and sustainable growth" in the local film industry amidst rising production costs and diminishing investments. Meanwhile, Son Seock-woo, chief executive of BH Entertainment, expressed hope that the agreement would initiate discussions on creating a balanced and sustainable industry ecosystem.