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From right: Minister of Culture, Sports and Tourism Choi Hwi-young, Korean Film Producers Association Representative Lee Eun, BH Entertainment CEO Son Suk-woo, and Korean Film Council Chairman Han Sang-jun hold a copy of the "Agreement Between the Government, Production Companies, and Management Agencies for the Revitalization of Korean Film Production" after signing it at the grand conference room of the National Museum of Modern and Contemporary Art in Jongno-gu, Seoul, on the 16th. / Yonhap News

The government and the film industry have agreed to cap actor appearance fees for mid-budget films.

The Ministry of Culture, Sports and Tourism, the Korean Film Council (KOFIC), major domestic management agencies including BH Entertainment and Management Soop, the Korean Film Producers Association, and the Producers Guild of Korea (PGK) met at the National Museum of Modern and Contemporary Art, Seoul on the afternoon of the 16th to sign the "Agreement Between the Government, Production Companies, and Management Agencies for the Revitalization of Korean Film Production."

According to the agreement signed on this day, management agencies and production companies will cooperate to ensure that appearance fees for lead and supporting actors in projects supported by KOFIC's "Mid-Budget Film Production Support" program are budgeted at less than 10 percent of the net production costs. KOFIC explained, "This agreement bears the nature of a moral agreement without legal enforcement," adding, "We plan to form a private sector-led autonomous consultative body involving management agencies, production companies, and investment/distribution firms to continuously discuss ways to improve the production environment."

Previously, to restore the stagnant Korean film production ecosystem, the government newly established the mid-budget film production support program last year with a budget of KRW 10 billion, and expanded its scale to KRW 460 billion this year. A mid-budget film refers to a feature-length live-action theatrical film with a running time of 60 minutes or longer and a net production cost of between KRW 2 billion and KRW 15 billion, excluding promotional and marketing expenses.

Minister of Culture, Sports and Tourism Choi Hwi-young, who attended the signing ceremony, stated, "The promise to voluntarily participate in setting a cap on actor appearance fees goes beyond simply cutting production costs; it represents a warm solidarity to revive Korean cinema together, as well as a courageous and mature decision," adding, "This wave of win-win cooperation will become the most powerful energy that makes people look at our films again."

Son Suk-woo, CEO of BH Entertainment, responded by saying, "It is a time to look back together at the various imbalances and structural issues within the industry and to build a healthier ecosystem," adding, "I hope today's agreement serves as a first step toward contemplating 'how we can create an industry that can endure together for a long time.'"

                                                                                                         Cho Seong-joon