A recent report by the Korea Film Federation (KOFIC) is causing controversy on online communities.
The report shows that the average production cost of a commercial Korean film in 2024 is about 9.5 billion won (about 6.56 million USD).
In which, labor costs account for 43%, equivalent to about 4.1 billion won. Actress salaries alone account for 1.8 billion won (1.24 million USD) of total labor costs, the rest is salaries for the production crew, about 2.3 billion won.
In the context of the film market shrinking after the COVID-19 pandemic, the burden of actors' cat-xe becomes the core issue of the production cost problem.
The report points out that after the pandemic, the proportion of actors' remuneration compared to total production costs has decreased slightly in a short time, but is currently stable and almost "frameworked" at 18-19%.
Media analyzes that this trend reflects the dependence of the Korean film industry on star-inspired projects, where famous actors are hired to increase box office success.
However, although this strategy can help increase the probability of film success, it also increases financial risks if the film does not attract audiences.
Reducing actors' fees will be a way to avoid risks for producers, but this is not simple. A source in the industry said that the market value of star actors has become solid, due to competition between production companies, and fee cuts may make it difficult to invite top actors.
Meanwhile, the salaries of backstage staff are linked to labor conditions, so the opportunity to cut labor costs is even more limited.
The film market itself also exacerbates the problem. In 2024, in the total revenue of 37 Korean commercial films, 68% of revenue came from theaters, while online platforms accounted for only 3%. This is proof that Korean commercial films are still heavily dependent on theaters.
In the context of increased production costs, reduced ticket prices and slowing down the growth rate of the theater market, maintaining profits is increasingly difficult.
Amidst this situation, the Korean public turned to criticize the actors, because they continued to receive high remuneration even when the film failed.
Some opinions are outraged when Korean actors are paid the same salary as in Hollywood. Audiences suggest switching to the form of remuneration for actors based on work efficiency.
