Netflix, once known for driving up production costs in Korea by offering sky-high appearance fees, is now reportedly imposing stricter limits.
According to an OSEN report on September 12, the streaming giant has lowered the ceiling on actor salaries for its Korean series and films from around 400 million KRW (about $290,000) to 300 million KRW (about $220,000) per episode.
Although 300 million KRW (about $220,000) is still a hefty sum, it marks a significant drop from last year when fees soared past 1 billion KRW (about $730,000) per episode for top-tier stars. Industry insiders suggest this change reflects Netflix’s strategy to curb spiraling production budgets, which have drawn criticism from the local industry.
“Netflix has been gradually lowering its cap on actor appearance fees to 300 million KRW (about $220,000),” one source told OSEN. “It seems to be part of a policy to control overall production costs.” Another insider added, “For several years, fees climbed uncontrollably. But starting this year, restrictions are becoming noticeable, and internally the 300 million KRW (about $220,000), cap is becoming a natural reference point.”
This shift comes as rising star Byeon Woo Seok, who gained international fame with the hit drama 'Lovely Runner,' confirmed his casting in his first Netflix series 'Solo Leveling.' While his growing popularity fueled speculation about a record-breaking paycheck, industry observers believe he will likely fall under the new cap.
However, exceptions remain. Actor fees vary depending on project scale, and Netflix’s season-based productions often include pay increases of up to 40 percent higher than initial contracts, allowing flexibility in certain cases.
For years, Netflix has been hailed as the driving force behind the global boom of K-content. At the same time, critics argue that its deep pockets inflated production costs and actor fees, squeezing the domestic market. Blockbusters such as 'When Life Gives You Tangerines' with a 60 billion KRW (about $44 million) budget and 'Squid Game' with a 100 billion KRW (about $73 million) budget illustrate the dramatic escalation. As a result, industry data shows Korean drama production has dropped sharply, from 141 series in 2022 to an estimated 80 this year.
The issue made global headlines when reports claimed 'Squid Game' star Lee Jung Jae earned 1 million KRW (about $1.3 billion) per episode for Season 2. In a January interview, Lee admitted the rumors were “a bit exaggerated” but acknowledged he was paid significantly more than before.
Even Netflix has expressed concern over unsustainable trends. Speaking in October 2023, Kim Tae Won, Director of Netflix Korea’s Content Team, noted: “While Korean content is thriving globally, rising budgets could backfire. We believe setting reasonable fees and budgets benefits not only Netflix but also the actors and the projects themselves.”
As Netflix adjusts its policies, the industry will be watching closely to see how this impacts both established stars and emerging talent in the Korean wave.
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