Netflix Reportedly Capping Actor Fees at $230,000 Per Project Amid Production Cost Concerns

Netflix is reportedly considering a significant shift in its compensation strategy for Korean content, with sources indicating a potential cap of approximately 300 million KRW (around $230,000 USD) per actor for series and films.

This move, if implemented, aims to curb the escalating production costs that have become a hallmark of K-dramas attracting global attention. Industry insiders suggest that Netflix is looking to rein in the 'inflated' fees that have seen actor salaries skyrocket in recent years, potentially bringing much-needed stability to the industry.

Reports suggest that this proposed cap has become a topic of internal discussion, with multiple sources confirming the trend. "The trend is that the cap for actors' appearance fees is being lowered to 300 million won," one industry insider revealed, attributing it to a policy aimed at managing overall production expenses.

While Netflix has been instrumental in the global rise of K-content, it has also faced criticism for fueling the surge in production budgets. Phenomenal hits like 'Squid Game' and 'The Silent Sea' were produced with budgets reportedly reaching 100 billion KRW and 20 billion KRW respectively, which, in turn, drove up actor salaries to unprecedented levels. This has led to concerns about the shrinking number of drama productions and a potential dip in the overall competitiveness of K-content.

Adding fuel to the discussion, recent foreign media reports claimed that Lee Jung-jae received $1 million USD per episode for 'Squid Game' Season 2. Lee himself acknowledged the reports in a January interview, stating, "It's true there were some misunderstandings, but it's also true that I was paid a lot."

Netflix's Kim Tae-won, Director of Content for Korea, had previously hinted at a need for more sustainable budgeting. In October last year, he stated, "If production costs continue to increase, it will boomerang back," adding, "We are contemplating that providing appropriate budgets and fees is the best approach for actors, us, and the project itself."

However, it's understood that the 300 million KRW figure may not be a rigid, universal cap. Factors such as project scale, an actor's contribution, and the nature of sequel productions could lead to exceptions and flexible negotiations. A Netflix representative reiterated this, stating, "We do not have a uniform cap on appearance fees. We flexibly negotiate with our partners, considering the specifics of the project, the role, and the production period."

The industry is now keenly watching to see if this potential policy shift will effectively deflate the bubble in K-drama production costs and foster a healthier creative ecosystem.

Lee Jung-jae, born in 1983, began his career as a model in 1993 before establishing himself as a highly respected actor over three decades. He has showcased a remarkable range across various genres, cementing his status as a leading man in South Korean cinema and television. His global breakthrough with the Netflix series 'Squid Game' significantly elevated his international profile and the perception of Korean actors worldwide.