Major Agencies Withdraw from Actor Management as Large-Scale Restructuring Accelerates

Major Agencies Like YG and C-JeS Withdraw...
Industry Structure Undergoes Reshuffling
From Low-Efficiency Management to Global IP

Actor Seol Kyunggu (left), who is considering his future amid the closure of CJES's actor division, and actor Cha Seungwon, who moved from YG Entertainment to KeyEast. CJES, KeyEast

Although K-pop and Korean dramas are expanding their influence in the global market, major domestic entertainment agencies are instead downsizing their organizations and realigning their business strategies. In particular, there has been a notable trend of agencies withdrawing from the actor management sector, signaling a full-fledged industry reshuffle.

YG Entertainment began winding down its actor management subsidiary, YG Studio Plex, in 2023 and officially terminated its operations in 2024. Established in 2018, this division managed popular actors such as Jang Kiyong, Lee Sungkyoung, Cha Seungwon, and Kim Heeae, but closed after five years, with its affiliated actors moving to other agencies. YG stated that the decision was made "to focus on core businesses."

In April, C-JeS Studio also announced, "We are ending our actor business as part of efforts to streamline unnecessary cost structures." Actors such as Seol Kyunggu, Moon Sori, Ryu Junyeol, and Ra Miran either terminated their contracts or moved to other agencies. C-JeS stated that it would focus its resources on drama and film production, as well as on the eight-member boy group WHIB.

Some major agencies have separated their actor divisions into independent legal entities or established independent management systems through external investment.

Actor management is based on individual contracts and involves significant fixed costs for managers, stylists, and PR and marketing staff. However, the industry commonly explains that it is difficult to generate profits solely from drama appearance fees or a few advertising deals. In particular, as actors' status has risen recently, the revenue structure has shifted so that most profits go to the actors, and if the number of projects is low, management agencies incur losses. One agency official said, "With fewer drama slots and advertisers becoming more cautious about investing, it is difficult to predict profits from just one or two advertising contracts."

Changes in the content production environment have also influenced this trend. Major online video services (OTT) such as Netflix, Disney Plus, and TVING, which increased production during the pandemic, began reducing the number of productions in 2023, and this trend became even more pronounced in 2024. Terrestrial and general programming channels also reduced drama programming and shifted to a focus on variety shows, decreasing opportunities for actors to appear. The theater market also shrank as annual audience numbers dropped to less than half, leading to a contraction in the film industry and, consequently, a decline in management agency revenues.

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The advertising and sponsorship markets are also shrinking. In the past, starring in a popular drama often led to multiple advertising contracts, but now, even content scheduling is uncertain, making advertisers reluctant to commit. As the number of projects decreases and recurring revenue becomes harder to expect, some analysts point to these factors as reasons for the withdrawal from the actor business.

In contrast, the idol-centered music business continues to grow steadily. HYBE has established a stable revenue structure by directly engaging with fans through the Weverse platform and generating sales from albums, concerts, and merchandise. SM and JYP are also achieving strong results through tours and fan events in Japan and North America. K-pop is now expanding its stage beyond Korea to global markets such as Japan, North America, and Southeast Asia, strengthening its fan-based revenue model.

As a result, focusing on the music business?which offers predictable profits and opportunities for overseas expansion?while downsizing the less profitable and labor-intensive actor division has become a strategy adopted by major agencies. An industry insider said, "Recently, many agencies have been struggling financially. The actor business involves significant risks related to privacy management and contracts, while profits are limited, so more agencies are deciding it is not sustainable and are withdrawing."

Going forward, it is highly likely that actor management will be reorganized around small and mid-sized specialized agencies. These agencies are diversifying their operations by linking with video production, YouTube channel management, and social networking service (SNS) promotions, but it is expected to take more time before they can establish a stable revenue structure amid the overall contraction in industry investment.

Cultural critic Park Hyunmin said, "Due to inflated actor guarantees, it has become difficult for agencies to make profits. Now, having a large number of actors is actually becoming a risk." He added, "There is also a sense that people hope this opportunity will help correct the overheated industry structure."