Based on Star News 20th Anniversary Korea Gallup Survey Results.
The talent fees for lead actors in dramas have surged to approximately $225,000 to $300,000 per episode. This often constitutes over 50% of the drama’s total production cost. Consequently, production companies are expressing concerns that such high talent fees might jeopardize their ability to produce new projects. To address this issue, should a cap on talent fees be considered to ensure they remain reasonable?
A recent survey conducted by Gallup Korea, commissioned by Star News, gathered opinions from 1,052 men and women aged 19 to 69 across the country from August 19 to 23. The results revealed that 83% of the public supports setting a cap on talent fees, such as limiting them to a certain percentage of the production cost, to curb fee inflation.
Support for this measure is strong across all age groups, with 70-80% of respondents in each category in favor. This indicates that both the public and production companies view the escalation in talent fees as a significant issue.
Among the 17% of respondents who opposed setting a cap, opposition was notably lower among those aged 19-29 (21%) compared to those in their 30s, 40s, 50s, and 60s, where opposition ranged between 10-17%. Thus, it appears that opposing views are in the minority.
Industry professionals share similar sentiments. Mr. A, a broadcasting insider, supports the idea of a cap on talent fees, stating, “While the lead actor’s influence on a project’s success cannot be denied, their clout has diminished over time.” He criticized the current system, noting, “There are numerous instances where top actors are hired, but the production is rushed, leading to the public dismissing the project. When a project fails, everyone involved, from the production company to investors and staff, suffers losses, while the actor has already received a hefty fee.”
Broadcaster B echoed this sentiment, emphasizing that a significant portion of drama production costs goes towards talent fees. “Excluding streaming platforms, it’s challenging for broadcasters to increase production budgets due to declining advertising revenues,” he said. “An upper limit should be set before talent fees increase exponentially. Moreover, there should be a more equitable distribution among actors to foster a diverse production environment beyond just streaming services.”
However, not everyone agrees with this perspective. Person C, an official from a production company known for producing high-profile dramas, pointed to Article 22, Paragraph 10, Clause 3 of the Enforcement Decree of the Special Tax Exceptions and Limitations Act. This provision excludes specific costs, including talent fees, from tax deductions if the combined fees of the top five highest-paid actors exceed 30% of the total production cost.
Person C viewed this provision as an indirect limitation on talent fees, suggesting it serves as a guideline that discourages excessive concentration of fees on top actors. “The industry can only thrive and sustain itself by ensuring that relatively lesser-known actors are fairly compensated,” he explained. He also warned that a unilateral cap on talent fees could disrupt market principles and lead to a situation where top actors continue to command high fees while emerging actors receive little.
Talent fees have been a contentious issue in the content industry for some time. Notable examples include actor Kim Soo-hyun, who received $375,000 per episode for the Coupang Play drama ‘One Ordinary Day’ and $225,000 per episode for tvN’s ‘Queen of Tears’. Park Bo-gum and IU reportedly earned $375,000 per episode for the Netflix drama ‘When Life Gives You Tangerines’, Choi Min-sik received $260,000 per episode for the Disney+ drama ‘Big Bet’, and Song Joong-ki earned $225,000 per episode for JTBC’s ‘Reborn Rich’. As a result, a substantial portion of production budgets is allocated to these fees. While the Special Tax Exceptions and Restrictions Act offers indirect guidelines, the high fees for top actors remain a pressing challenge for production companies.
Given South Korea’s democratic context, it seems unlikely that a strict cap on talent fees will be implemented. Nonetheless, with growing recognition of the issue among the public and industry insiders, a more robust solution than the current tax regulations is urgently needed.
The ‘Star News 20th Anniversary Survey’ was conducted by Gallup Korea from August 19 to 23, targeting 1,052 men and women aged 19 to 69 nationwide. The survey, which examines the entertainment industry since the 2000s, included 20 candidates in each category based on major charts and awards, online and offline influence, and opinions from reporters. Participants were asked to select two candidates from the list or write in others. The survey was conducted online with a ±3.0% margin of error at a 95% confidence level, and the data was weighted according to the resident registration population statistics from the Ministry of the Interior and Safety as of the end of July.
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