Film industry agrees to cap actor fees in mid-budget productions to revive Korean cinema

South Korea's film production companies and major talent management agencies have agreed to keep actor fees below 10% of net production costs for government-supported mid-budget films.

The Ministry of Culture, Sports and Tourism and the Korean Film Council signed an agreement Thursday afternoon with leading domestic management agencies and film production organizations at the National Museum of Modern and Contemporary Art in Seoul. The pact, titled "Government-Production Company-Management Agency Agreement for Revitalizing Korean Film Production," formalized the commitment.

Culture Minister Choi Hwi-young and Korean Film Council Chairman Han Sang-jun attended the signing ceremony, along with key representatives from major management agencies — including BH Entertainment, Management Soop and J. Wide Company — as well as the Korean Film Producers Association and the Producers Guild of Korea.

The management agencies and production companies present agreed to ensure that fees for lead and supporting actors in projects selected under the Korean Film Council's mid-budget film production support program are set below 10% of net production costs. The government had earlier quadrupled the program's budget this year to 46 billion won ($30.9 million) — more than four times the previous year's allocation — as part of broader efforts to restore the Korean film production ecosystem.

A privately led consultative body comprising management agencies, production companies, and investors and distributors will also be established to discuss ways to improve the production environment. The agreement, however, carries no legal binding force.

At the ceremony, Minister Choi thanked the industry for taking a leading role in efforts to revive Korean cinema. "We will spare no policy support so that the government's fiscal backing and the industry's commitment to mutual growth can work in synergy and allow Korean film to make a great leap forward," she said.

Korean Film Council Chairman Han said some projects are failing to get off the ground due to production cost structures, despite strong creative concepts and talent. "Mid- and low-budget films are the backbone that sustains the industry's diversity and future," he said. "We need to work together to build a healthier production environment."