[Gangnam Perspective] Soaring Actor Fees: Will the Bubble Threaten K-content?

The arrival of Netflix has revolutionized the content production ecosystem. With massive production budgets, large-scale programs like 'Culinary Class Wars'—which traditional broadcasters could not even attempt—have been created. In this process, actor fees have skyrocketed.
As of 2023, Netflix's annual content production budget exceeded $15 billion, far surpassing the budgets of traditional broadcasters. To attract and retain subscribers, Netflix adopted a strategy of investing heavily in quality content. This naturally increased reliance on proven star actors, which in turn drove up their fees.
In 2020, the top star actor's appearance fee per episode was 350 million won, but by 2024 it reached 1 billion won. This is nearly a threefold increase in just four years. The film industry is no exception. The top actor fee for major films, which used to be around 700 million won, has recently soared to 1.2 billion won. Some actors are reportedly demanding as much as 1.4 billion won.
As a result, the production cost per drama episode in Korea has doubled. In some cases, actor fees now account for 30–40% of the total production budget, up from 10% previously.
This has led to side effects. Paying over 1 billion won per episode in appearance fees makes it impossible to generate profits from the domestic market alone. Overseas expansion is no longer a choice but a survival strategy. Furthermore, while actor fees have surged, improvements in compensation for directors, writers, and staff have been relatively minimal. This imbalance could lower morale on set and lead to a talent drain.
In particular, the burden of rising actor fees has resulted in a sharp decline in the number of dramas produced. The number of productions dropped from 141 in 2022 to 123 in 2023, is expected to reach about 100 in 2024, and may fall to around 80 this year.
The film industry faces a similar situation. Before the pandemic, investors funded 10–12 films a year, resulting in about 70 Korean commercial films annually. Now, that number has plummeted to 20–30. Theater attendance dropped from 226.68 million in 2019 to 123.13 million in 2024, nearly halving. The rise in production costs has led to reduced investment and fewer productions, creating a vicious cycle.
Ultimately, Netflix also implemented countermeasures, such as capping actor appearance fees at 400 million won per episode as of last June. In this context, lead actor Park Jeong-min drew attention by starring in the film 'The Ugly' without a guarantee fee. Produced on a budget of 200 million won, the film adopted an ultra-low-budget approach with a crew of about 20, filming 13 times over three weeks.
'The Ugly' surpassed its break-even point just three days after release and attracted over one million viewers, achieving a box office success 9.6 times its production cost. Fortunately, the cast is expected to receive revenue-sharing payments.
From a market perspective, rising actor fees may be a natural development. However, if these fees strain the production ecosystem, the industry itself could collapse. Park Jeong-min's no-guarantee appearance in 'The Ugly' should not be seen as a mere novelty, but as an event that offers new possibilities to the struggling Korean film industry. Recently, some production companies have introduced systems that adjust actor fees based on a project's performance. The base fee is set at a reasonable level, with incentives provided according to box office results. This approach offers a win-win opportunity for both actors and producers.
Following K-pop, K-content such as dramas and films is gaining global attention. However, this popularity could prove fleeting. As the world turns its eyes to K-content, we must seek sustainable solutions. Linking actor fees to performance, restoring balance in production costs, and building an ecosystem where actors, producers, and platforms can coexist are all essential steps to ensure the global competitiveness of K-content.
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