▲ Officials, including Culture Minister Chae Hwi-young (2nd from R), Lee Eun (3rd from R), head of the Korea Film Producers Association, Son Seock-woo (C), chief executive of BH Entertainment, and Han Sang-jun (3rd from L), head of the Korean Film Council, pose for a photo after signing a trilateral agreement between the government, production companies and talent management agencies to revitalize Korean film production at the National Museum of Modern and Contemporary Art in Seoul on July 16, 2026. (Yonhap)
▲ This undated photo provided by the Ministry of Culture, Sports and Tourism shows Minister Chae Hwi-young. (PHOTO NOT FOR SALE) (Yonhap)

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SEOUL, July 16 (Yonhap) -- Film producers and major talent agencies on Thursday 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 Ministry of Culture, Sports and Tourism and the Korean Film Council (KOFIC) said the agreement was signed 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.

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.

During the signing ceremony, Culture Minister Chae Hwi-young expressed appreciation for the pledge, saying the voluntary move to cap actors' fees went beyond cost-cutting and represented "a warm sense of solidarity and a courageous, mature decision" to help revive Korean cinema.

"This wave of cooperation will become the most powerful energy in bringing audiences back to Korean films," Chae said.

KOFIC Chairman Han Sang-jun said support for mid-budget productions would serve as "a catalyst for diversity and sustainable growth" in the local film industry amid rising production costs and shrinking investment.

Son Seock-woo, chief executive of BH Entertainment, said the industry should take the opportunity to address structural imbalances and build a healthier ecosystem. "I hope today's agreement will serve as a first step in discussing how to create an industry that can endure together over the long term," he said.

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