'Top A-class actors earn 300M-500M KRW per episode'... Are actors receiving tens of billions overvalued? [Focus]

K-Content Status Up↑ Increasing Number of 'World Class' Actors
Top Stars' Appearance Fees 300M-500M KRW Per Episode
Stars Approaching 1B-1.5B KRW Value
High Appearance Fees Major Cause of Rising Production Costs

The content of the text and this photo are unrelated. [Photo by Yonhap News]

Since the pandemic, the market has been divided between online video services (OTT) and theatrical films. As a series of so-called 'warehouse films' with disappointing quality were released in theaters, audiences stopped coming. Investors have been pouring money into OTT productions one after another. Major content producers have long focused on securing good webtoon IPs (intellectual property), which were then produced into 8 to 12-episode series and released on various platforms. On top of that, with the increase in channels, the market's center of gravity has shifted to OTT, accounting for over 60%.

As the market became more conservative, stable casting of actors was required. Actors who fit the role's image well, possess acting skills, and have both recognition and buzz are considered. In particular, verification regarding personal life risks and reputation has become stricter. As relationships with production companies and others became more important, it has become an era where 'stars' also engage in business.

Production costs rise 2 to 3 times... Actor fees soar amid K-content popularity

Many film and content producers and key platform officials who recently met with Asia Economy agreed that the production market has expanded. Previously, production per episode was possible at around 500 million KRW, but now production costs per episode are about 1 billion KRW. The industry consensus is that costs have increased 2 to 3 times since the pandemic. There was a time when dramas were heavily promoted as '10 billion KRW blockbusters,' but now producing a 16-episode drama typically costs around 16 to 20 billion KRW.

The situation is no different for theatrical films. Films that used to be produced for 2 to 3 billion KRW now cost about 6 to 7 billion KRW. Total production costs have increased more than 2 to 3 times. Accordingly, the break-even point (BEP) has also risen. Large-scale films costing over 20 billion KRW find it harder to make money in theaters. Moreover, considering overseas sales and ancillary rights that lower the break-even point, hiring 'stars' has become a natural choice.

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The sharp rise in actors' fees is cited as the biggest cause of increased production costs. As K-content gained global attention through OTT platforms, the overseas recognition of actors has risen. Industry insiders agree that their market value has skyrocketed.

OTT series and dramas pay per-episode fees, and there was a time when fees were around 100 to 200 million KRW per episode. Complaints about the 'billion KRW' fees are now a thing of the past. Now, some actors command fees as high as 1 billion to nearly 1.5 billion KRW per episode. They have worked with famous overseas productions while enjoying high global recognition and popularity, which has dramatically increased their market value. On the 16th of last month, at a meeting discussing industry issues held by the Korea Drama Producers Association in Mapo-gu, Seoul, these actors' fees became a hot topic. The fees of top stars classified as 'Special A-grade' are substantial, ranging from 300 to 500 million KRW. Actors such as Song Joong-ki, Lee Jong-suk, and Park Bo-gum are known to fall into this category.

In the case of theatrical films, which are experiencing a downturn, some of the actor fee bubbles have deflated, but it is hard to say there has been a significant change compared to the past. For Special A-grade actors who can secure investment as 'one-top leads,' fees are around 1 billion KRW, with additional shares based on box office performance.

"Actors who don't promote? Casting burden... Increased responsibility"

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A senior official at a film production company said, "Actors' market values are overestimated. There was a time when the so-called 'name value' of 'who stars in a film or drama' directly translated into promotion. At that time, even without special promotion, if casting was good, audiences and viewers naturally followed," recalling the past. He said the situation in 2024 is different. He viewed that "In an era flooded with content, no matter how famous an actor is, if they do not actively engage in promotion, the work quietly disappears without a trace."

Another industry insider said, "Even famous actors feel a sense of crisis about their competitiveness," adding, "The actor labor market is already a 'red ocean'." There is a trend where actors who once insisted on never appearing on YouTube or variety shows are changing their stance. He said, "Actors who treat promotion as someone else's job and do not participate are difficult to cast," and "Recently, low-quality Korean films and OTT content are thoroughly ignored. Audience and viewer scrutiny has become stricter. It is an era that demands great responsibility from actors."

It is not easy to lower the soaring actor fees, so those casting them end up having to compromise to some extent. Hoping actors will lower their fees on their own is considered greedy. An industry insider said, "There are many talented actors. Not only in their 20s but also skilled and sharp actors in their 40s are rapidly rising," and added, "The way is to continue discovering undervalued actors while naturally narrowing the demand and position of actors who do not justify their fees."