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Signing of the agreement to revitalize Korean film production

  (provided by the Ministry of Culture, Sports and Tourism)

South Korea's top talent agencies and film production organizations have agreed to cap lead and supporting actor fees at under 10% of net production costs for government-supported mid-budget films. The Ministry of Culture, Sports and Tourism and the Korean Film Council (KOFIC) signed the "Agreement Between the Government, Producers, and Talent Agencies to Revitalize Korean Film Production" on July 16 at the National Museum of Modern and Contemporary Art in Seoul, with participation from leading talent agencies BH Entertainment, Management SOOP, and J,WIDE Company, along with the Korean Film Producers Association (KFPA) and the Producers Guild of Korea (PGK).

Amid ongoing criticism that high actor fees have been accelerating production cost increases, the agreement commits talent agencies and producers to ensuring that lead and supporting actor fees for films selected under KOFIC's Mid-Budget Film Production Support Program remain under 10% of net production costs. The parties also agreed to form a private-sector-led council including talent agencies, producers, and investment-distribution companies to continue discussing improvements to the production environment, so that the agreement does not remain a one-time event. However, the agreement carries no legal binding force and functions as a voluntary moral commitment.

The government had previously launched the Mid-Budget Film Production Support Program in 2025 with a budget of 10 billion won to help revive Korea's struggling film production ecosystem, expanding the program's funding to 46 billion won this year. The agreement holds significance as a response from actors and the talent management industry to the government's expanded financial support, demonstrating voluntary participation and solidarity.

Minister Choi Hwi-young of the Ministry of Culture, Sports and Tourism expressed gratitude to actors and the talent management industry, stating that the government would spare no policy support to help Korean cinema rebound through the synergy of government financial backing and the film industry's commitment to shared growth. KOFIC Chairman Han Sang-jun emphasized that mid- and low-budget films serve as the backbone sustaining the industry's diversity and future, underscoring the need to build a healthier production environment together.

Significance and Outlook

The agreement is notable as a self-initiated attempt by the industry to address a long-standing structural issue in Korean cinema: the outsized share of production budgets consumed by actor fees. The fact that major talent agencies voluntarily agreed to fee caps, even if limited to government-supported projects, is symbolically significant as a signal of change to what had long been an entrenched practice in fee negotiation.

For overseas film industry professionals, this may be read as a signal of greater predictability in the cost structure of Korean mid-budget films. If actor fees as a share of overall production costs are managed more stably, this could serve as a risk-mitigating factor for international partners considering co-productions or investment. However, since the agreement is a moral commitment without legal enforceability, its actual effectiveness will require ongoing observation.

Going forward, attention will focus on how the voluntary council of talent agencies, producers, and investment-distribution companies operates, and whether this measure translates into an actual increase in mid-budget film production or investment activity. It also remains to be seen how far the perception of mid- and low-budget films as the backbone of industry diversity spreads as a result of this agreement.

Sources

•  Yonhap News Agency, "Actor Fees for Government-Backed Mid-Budget Films to Be Set at Under 10% of Production Costs", 2026.07.16

•  The Hankyoreh, "Government-Backed Mid-Budget Films to Lower Actor Fees", 2026.07.16

•  YTN, "Government-Backed Mid-Budget Films to Lower Actor Fees to Under 10% of Production Costs", 2026.07.17