Will the voluntary cap on actor fees actually help the local film industry?

While some have welcomed the state initiative to introduce a voluntary pay cap for actors in midbudget Korean movies, others question whether it will have any real impact on revitalizing the domestic film industry.

The Ministry of Culture, Sports and Tourism and the Korean Film Council signed an agreement with film producers and talent agencies on Thursday to limit leading and supporting actors’ salaries — to less than 10 percent of a production budget — at their own volition. The move is part of efforts to revive the domestic film industry. 

Under the framework, projects selected for the Korean Film Council’s support program for midbudget productions will be advised to keep actors’ fees below 10 percent of a film’s net production budget.

For example, a film with a net production budget of 5 billion won ($3.4 million) would be advised to pay its lead actor less than 500 million won.

Signatories include the Korean Film Producers Association, the Producers Guild of Korea and three major talent agencies: BH Entertainment, which manages actors Lee Byung-hun, Han Ji-min and Park Bo-young; Management Soop, which represents actors Gong Yoo, Gong Hyo-jin, Jeon Do-yeon and singer and actor Suzy; and J,Wide Company, which oversees actors Kim So-yeon, Bae Jong-ok and Choo Young-woo.

“The agreement is not legally binding. Rather, it serves as a moral consensus to promote shared growth across the industry,” the government said. “We will establish an industry-led consultative body to continue discussions on ways to improve the [film sector].”

The Korean Film Council launched the midbudget film production support program last year to help revive the domestic film industry — which has struggled since the Covid-19 pandemic — by prioritizing creative ideas over potential profits and allowing new talent to break through.

Midbudget movies are those with production budgets between 2 billion won and 10 billion won.

The program’s total budget has expanded from 10 billion won last year to 46 billion won this year, spread across two rounds of funding.

Some of the 16 projects selected in the first round this year feature well-established actors. Song Kang-ho, Koo Kyo-hwan and Song Seung-heon star in “The Gardenders” (translated), directed by Nam Dong-hyub, and Ko Hyun-joung and Park Jeong-min are the leads in “Your Target” (translated), directed by Byun Young-joo. Mun Ka-young is reportedly considering joining “Two Pieces” (translated), directed by Min Yong-keun.

These actors are represented by agencies that are not part of the newly signed agreement.

“It has not yet been decided whether the agreement will apply to projects that are selected for funding this year,” a Korean Film Council representative said. “We plan to expand participation in the agreement to more talent agencies.”

Industry insiders welcomed the government’s attempt to revitalize the production environment but questioned its effectiveness as it applies only to films supported by the council’s midbudget program.

Much of the controversy over actor fees centers on big-budget original series produced by global streaming platforms, which often have production costs in the tens of billions of won.

By contrast, midbudget films usually rely on voluntary agreements, in which more well-known actors accept lower upfront fees in exchange for a share of profits if the film succeeds.

Some insiders, however, remain more skeptical about the initiative’s effectiveness. 

“Actor fees have already been voluntarily adjusted [without the state initiative], so it’s debatable whether state-led recommendations are appropriate,” a source from a production company said.

“I’m also concerned that this could invite criticism of midbudget films by making people wonder how much companies have been paying actors for the government to step in.”

Others offered a guarded assessment of companies' cooperation.

“Even with the agreement in place, it remains to be seen to what extent talent agencies will actually cooperate,” another industry source said.

BY NA WON-JEONG [[email protected]]