Some of South Korea’s biggest stars, including Lee Byung Hun, Jeon Do Yeon, Gong Hyo Jin, and Kim Go Eun, are backing a new industry initiative aimed at helping revive the country’s struggling film industry.
Leading talent agencies and film producers have reached a voluntary agreement to cap actors’ salaries for government-supported mid-budget films, marking a significant step toward reducing production costs and encouraging more film projects.
On July 16, South Korea’s Ministry of Culture, Sports and Tourism (MCST) and the Korean Film Council (KOFIC) signed a cooperation agreement with major talent agencies and film production organizations at the National Museum of Modern and Contemporary Art in Seoul.
Participants included: BH Entertainment, Management SOOP, J,WIDE-COMPANY, Korean Film Producers Association and Producers Guild of Korea (PGK).
The agreement aims to improve the production environment for Korean films, particularly mid-budget projects that have become increasingly difficult to finance.
Under the agreement, participating agencies and producers will cooperate to ensure that fees paid to lead and supporting actors in KOFIC-supported mid-budget films remain below 10% of the film’s net production budget.
The measure specifically applies to projects receiving support through KOFIC’s Mid-Budget Film Production Support Program. Rather than imposing a legally binding cap, the agreement is based on voluntary cooperation among industry stakeholders.
To ensure the initiative continues beyond a single agreement, the organizations also plan to establish a private consultative body involving talent agencies, production companies, investment firms and film distributors. The group will continue discussing practical ways to improve Korea’s film production environment and strengthen industry sustainability.
The agreement clearly states that the arrangement carries no legal obligation, emphasizing that participation is based on goodwill and shared responsibility.
Minister Choi Hwi-young praised the participating agencies for voluntarily supporting the initiative. “The decision to voluntarily participate in setting limits on actor fees goes beyond simply reducing production costs. It represents a warm spirit of solidarity and a courageous, mature commitment to reviving Korean cinema.”
He added that this collective effort could become one of the strongest driving forces behind the industry’s recovery.
KOFIC Chairman Han Sang Jun also emphasized the importance of supporting mid-budget productions during a period of rising costs and shrinking investment. According to Han Sang Jun, increased government support can help restore diversity within Korean cinema while creating a more sustainable production ecosystem.
The South Korean government launched its Mid-Budget Film Production Support Program last year as part of broader efforts to revive the domestic film industry.
- 2025: ₩10 billion (approximately US$7 million) allocated
- 2026: Expanded to ₩46 billion (approximately US$33 million)
The significant increase reflects growing concerns over rising production costs, declining private investment, and the shrinking number of commercially viable mid-budget Korean films.
In recent years, escalating production expenses particularly high star salaries have become one of the industry’s biggest concerns. Supporters of the new initiative argue that lowering actor fees for publicly funded films could:
- Reduce financial risk for producers
- Increase the number of films that secure financing
- Create more opportunities for diverse storytelling
- Strengthen the long-term sustainability of Korean cinema
Because the agreement is voluntary rather than mandatory, its success will ultimately depend on continued cooperation among actors, agencies, producers, and investors.
Still, the participation of major agencies representing some of Korea’s biggest stars sends a strong signal that the industry is willing to work together during a challenging period.
Sources: 네이트 뉴스
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