SEOUL, July 16 (Yonhap) -- 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.
The Ministry of Culture, Sports and Tourism and the Korean Film Council (KOFIC) said the agreement would be signed in the afternoon at the National Museum of Modern and Contemporary Art in Seoul.
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 program for supporting mid- and low-budget films remain below the 10 percent threshold.
This undated photo provided by the Ministry of Culture, Sports and Tourism shows Minister Chae Hwi-young. (PHOTO NOT FOR SALE) (Yonhap)
Actors' pay has been a primary driver of the mounting financial burden on the film industry, which is already grappling with declining theater audiences and worsening profitability due to the expansion of streaming platforms. According to data from KOFIC, these 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.
The culture ministry said the agreement reflected voluntary participation by actors and talent agencies in support of the government's push to revitalize Korean cinema. The government introduced the film support program in 2025 with a 10 billion-won (US$6.7 million) fund, expanding it to 46 billion won this year.
"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," Culture Minister Chae Hwi-young said in a release.
KOFIC Chairman Han Sang-jun called for joint efforts to create a healthier production environment, calling mid- and low-budget films "the backbone" of the industry's diversity and future.