Netflix is reportedly trying to rein in the soaring salaries of top Korean drama actors. According to a September 12th report from the Korean outlet OSEN, the streaming giant is implementing a soft cap of around 300 million won ($220,000) per episode for its productions in an effort to control inflated production costs.
“The trend is for Netflix’s actor appearance fee cap to gradually decrease to 300 million won,” one industry insider stated. Another added, “Netflix’s appearance fees have been skyrocketing for the past few years, but a halt began this year.”
While Netflix has been a key driver of K-content’s global success, it has also been criticized within the industry for creating a salary “bubble” and being a primary cause of the surge in production costs. For example, massive budgets for shows like When Life Gives You Tangerines (approximately $43.2 million) and Squid Game ($72 million)—sums previously unimaginable in the domestic market—led to complaints that actors’ salary demands began to skyrocket as a direct result. This has strained the local Korean market, leading to fewer dramas being produced overall, from 141 shows in 2022 to an estimated 80 this year.
The issue gained international attention after reports that Lee Jung Jae received a staggering $1 million per episode for Squid Game Season 2. While Lee called the figure a “misunderstanding,” he admitted in an interview that he “received a significant amount.”
Last October, a Netflix executive signaled a shift, stating that rising production costs could “eventually boomerang back” and that the company was looking to provide “appropriate appearance fees within a reasonable budget.”
In response to this new report, a Netflix official denied a “uniform cap,” stating, “We flexibly negotiate with partners, considering the project’s characteristics, roles, and production period.” This suggests a strategic shift towards more tailored budgets rather than a hard salary limit. Sources also note that exceptions are expected, especially for returning seasons of hit shows.
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