SOUTH KOREAN FILMS might seem a world away from the monster economies of Hollywood and its US$20 million paydays for stars such as Brad Pitt, Jim Carrey and Julia Roberts. But make no mistake, costs are going up - high and fast - much to the chagrin of local filmmakers.
One of the country's highest-paid actors is Jang Dong-kun, star of the Korean war blockbuster Taegukgi and the upcoming action epic Typhoon, which had pulled in 6.8 billion won (US$6.48 million) up to November, according to his management company.
And he's not alone. Stars such as Choi Min-shik or Jung Woo-sung routinely ask for up to US$500,000 a film, plus a share of net revenues - sometimes a large share. In some cases, they can pull in even more.
Bae Yong-joon's name almost single-handedly drew investors and distributors from all over Asia to his most recent film, April Snow. Although his management company won't comment on the record, it's widely believed that Bae - one of the best-known Korean actors outside the peninsula, with a huge fan base in Japan and Hong Kong - got half the estimated US$8 million April Snow received from UIP Japan, the film's backers in that country. And that's only for the Japanese rights.
For producers, these salaries are a nightmare, threatening the future of South Korea's entertainment business. 'If stars' salaries keep soaring, it will ruin production in Korea,' says David Ahn Taeg-ho, director for content, strategy and development at MBC, one of the nation's top television stations.
The South Korean film industry might be enjoying unprecedented success, raking in about US$460 million at the local box office in 2004 (up from just US$64.8 million in 1998), but it still struggles with profitability. Even as revenues have soared, costs have also rocketed: the average budget for a film now is US$4.1 million, up from US$1.4 million in 1998. Sure, rising marketing and advertising costs account for much of that increase, but the really intimidating shift has come from the costs of recruiting top actors.