I wonder if there's any power in having actors just refuse to work with certain companies, or even better, broadcasters tying future work to successfully resolved past issues. For example, no slot until we see a good faith effort to clear up debts. Good faith could be payment plans. New projects would need better financing up front. Why is it so lopsided, though? Why don't broadcasters and production companies alike share the risks?

From now on I am not going to make any PPL jokes, if their existence means that money goes to those who are working hard to entertain us.

I still will however laugh at the subway jokes. Can't help it otherwise!

Yikes! Another reason to be glad Netflix has taken interest in Korean dramas.

And the chance of actors going on strike is probably highly unlikely-- and who knows if it would do any good either. :/ I wish the actors would be paid like they deserve, they offer us so much entertainment to distract us when things get tough in life!

Geez, God of Noodles happened so long ago... that really sucks for the actors. I wonder why Korea hasn't tried branching into other markets like Japan or South Asian countries in light of the China Ban. Is there just no money there? I know they're smaller.

Another reminder that the production environment of dramas still needs lots of improvement. In cases like this I find myself especially worried for the actors with smaller roles, since they must be much more dependant on their income to put food on the table compared to the big stars :/

Netflix did pay for license to Night light though. sound like this is something that need to get fixed inside the industry so they know they can pay actors and staff before camera roll. surprised to read that they can start production before they have their finance in order.

It took 4 years (mid-2016) for Touch the Sky Productions to fully pay the cast and crew of "Bachelor's Vegetable Store" which finished airing in February 2012. Broadcaster Channel A refused to get involved in the non-payment issue, and subsequently decided dramas would stop airing on their channel after 2012 because they didn't make enough money to cover their costs.

Reforms will never occur unless the K-drama industry guts itself and reforms under a more equitable system. Which means it ain't gonna happen ever.

It still boggles my mind how dramas keep coming out using systems (financial, filming and more) that are essentially gambling. Dramaland tosses darts and everyone's livelihood but that of a-list stars and creators seems to depend on one landing just right.

I hope that the China mess will at least push them to look for a more independent method of stability for productions, but then again Dramaland can be kind of slow with some things, so let's see.

this is really sad I really pity the smaller actors

1. Is it the whole cast who haven't been paid or just everyone who isn't the main leads?
2. This is just atrocious and makes their companies look even worse. I thought people got paid in parts throughout the show? Or atleast by the time the show is over

On one hand, I consider the China ban a blessing in disguise in that nothing says find alternative source of generating funds like being cut straight from the source. The fact that China knows that they can use this as a bargaining chip and that it's working so far also grates. Now I just need dramaland to band together and actually talk about how they're going to solve this mess, because the ostrich with its head in the sand approach is not benefiting anyone. Especially the actors and the crew who've put so much effort into their work.

I was afraid the Chinese ban would affect the industry like this. But didn't Master of Noodle air before the ban? Since a change in the industry itself is highly unlikely (and obviously not as important), I just hope that the political issue will sort itself out sometime soon and end the ban. It's probably affecting a lot of other parts of the Korean economy as well.

The supporting actors are probably the worse ones off

That's very interesting. I actually hadn't known about actors not being paid by production companies and it's an even bigger shock to hear that Faith's PD committed suicide. :/

This opens my eyes up even more because usually I'd hear about Kpop stars who usually go into other markets such as China & Japan to attract a bigger audience towards their music. I never knew S. Korean production companies somewhat depended on China to also bring in more revenue (I hope I used it correctly). This is very sad to hear.

Wait, aren't there any thugs for hire to go around and demand payment ? /s

Imo, the system is just unsustainable. The fact that the fees paid by the local broadcasting station cannot cover all of the production costs (and more) means that they are reliant on other sources of income (DVD sales, export overseas). And now China has closed the door to Hallyu.

It's interesting, because this is really only a concern for the Korean entertainment industry. If you look at other countries, most of the production companies get all of their investments back from selling broadcasting rights to local stations. Earnings from overseas markets are just icing on the cake. It's not an necessarily an issue with the production company, and nor should they blame the Hallyu ban. I mean, none of the other markets will be affected by the ban.

If sets + staff pay + actors pay > local broadcasting rights, this means that the stations are paying too little, or the actors are overpaid (likely so), or the production team is being too ambitious. Could be a combination of the factors as well. The fact is that the Korea market is small, and actors shouldn't expect to earn as much as their counterparts in the bigger markets. The production company shouldn't go above their means as well. A top Chinese actor earns ~US$100k per episode, a top Korean actor earns ~US$83k per episode. That doesn't make any sense at all considering the disparity in the size of the markets.

That's interesting, considering that "Night Light" is available on Netflix (under the title "White Nights") so that's another stream of revenue that the production company cashed in on - they should have the cash to pay the actors. As for a production that's over a year completed, there has to be some form of criminal or civil action that can be applied here because it's unlikely they've got the resources to cough up. They're not still producing, are they?

Money makes the world go round......very cliche but so, so true. I am also glad that they are seeking alternative means of production and distribution like Netflix. The "putting all your eggs in one basket" has got to stop......and it will hopefully allow for more interesting/diverse content if they don't have to please one audience.

This sucks :(

The Chinese ban is really damaging..
I pity the actors..

So the real issue is whether it's better for the fandom to intentionally embrace a brief period of gratuitous Subway and Papa John's ads or to have the nation of Korea (re)surrender its sovereign rights of self defense and self determination.

Good write-up, tipsymocha! I vaguely knew stuff like this was happening but didn't know it was from the stations outsourcing to production companies, I thought they produced their own stuff. Sounds messy and risky for actors/film crew.

Some IR perspective here on the hullabaloo. Apologies in advance for the long post. Guess some people already know why dramas can't be as profitable in the past before China's ban. So what is the China's ban? China is banning almost all contents of Korean dramas, Kpop and other related measures while SK insists on deploying THAAD. THAAD (Terminal High Altitude Area Defense) is a ground-based missile defense system, designed to shoot down short-, medium- and intermediate-range ballistic missiles during the terminal phase (i.e., when they are coming down). The system is from US, aimed to defend SK from North Korea's missiles. It hasn't deployed yet but it already caused ruckus because China sees it as a threat due to THAAD's radar system that could detect China's own missiles system. All in all, China sees THAAD as a strategic measure from US and SK to "spy" their system. As a response, China placed ban on South Korea's business, especially K-pop/entertainment industry because they know it's one of the major economic souce for SK. SK depends on China anyway since China is their largest trading partner.

So what's SK response? From what I heard, read and see, K-pop and K-dramas industry have been looking for new markets, especially in Southeast Asia, US and Europe. SEA region has around 600 million people, half of China's population, and established Korean Wave following. In my country alone several Kpop groups, So Ji Sub, and Lee Dong Wook make a visit this year. SM Entertainment will hold audition for NCT members in Indonesia. Some TV channels also regularly air Korean dramas programme, even though Kdramas now are much more expensive than dramas from other countries). I heard after China, SEA is their main target, so expect to see more stars and K-pop groups coming there. Regarding Europe and US, you see some Kdramas are being remade in US. Netflix is also expanding to Kdramas so it's matter of time before it spreads wildly to other less-known regions.

Regarding production costs and licensing rights, I believe they will follow the trail of money. Probably it will push Korean broadcasters and prod companies to experiment with new formats and new financing options. As long as there's money there even if it's not from China, they'll be fine.

Industry needs to fix itself and learn not to depend on just one country

Very flawed system. And whilst china market n consumerism for kdrama was vy high, that avenue had all but disappeared. Sucks not being paid for ur work.

If not for the overseas markets, K-dramas will not look as stylish and nice as they are now. I mean, comparing K-dramas with the local shows in my country, the difference in production values is great. It is evident that K-dramas have more money to play around, and some of this is seen in the increasing use of special effects and huge sets and luxurious houses. K-drama has become a regional, if not global industry just like Hollywood. And just like how many Hollywood movies will not break even with just the domestic box office, I think K-dramas also need overseas sales to break even now. They could try to target other markets but frankly, the purchasing power of countries like in SEA cannot be compared to the China market. Not to mention they have already been selling to some of these markets already. China is still the most important market, for both K-dramas and Hollywood. Of course, they should cut down their production budgets for future dramas and not operate with so much risks. But K-dramas nowadays are so extravagant compared to the early days of Hallyu that I doubt it will change. People are used to their K-dramas looking sleek and stylish, and actors are used to their disproportionately high pay checks.

I vaguely recall that Valid Love is another drama that had issues paying its actors.

I am one that generally doesn't complain about the Subway ads. I know that people joke about them or get annoyed about them, but everyone should be thanking Subway and just perhaps wishing for more creative ways to work the ads into the drama. Product placement is necessary and way more so than in the US.

I think many more partnerships with Netflix is only a good thing. They are going global and can help spread the popularity of Korean dramas. I, like many, discovered K-drama via Netflix and many other countries don't have Dramafever or Viki to rely on for their addiction. Perhaps with enough popularity, legal streaming sites will develop in other areas that don't already have them which creates more $$ for the productions. I do realize Netflix's goal is to get Korean subscribers so don't know how much time they will give to break into the Korean market before moving on.

I remember that whole Age of Feeling mess. This really sucks for those who have put in so much hard work and dedication. And it's especially devastating when people decide that the only way out is to end their lives. I really hope that reform can happen and there would be more accountability to prevent such unpaid incidents and tragedies from occurring.

Don't they start these productions with a set budget? I don't get why they don't just factor in the pay and the set costs and everything first instead of relying on other revenues. It's irresponsible to blame on the low ratings or China bans for failing to pay the actors for their fair share.

I think the problem is that as hallyu and K-dramas become more and more global and the market for it increases, everyone involved in it wants a bigger piece of the pie. And if you want a bigger pie, then you have to make the production bigger in scale and the budgets go up. The higher the budget, the higher the risk and in the end it's like a gambling game. But the networks don't typically want to take the risk so it's up the struggling production companies to take on the risk. The networks do pay for the cost or production, or below-the-line costs. But above-the-line costs for creatives (directors, DPs, producers, actors) are mainly the responsibility of the production company. This is where the problem is. The production company usually has the rights to sell the drama overseas but when the biggest market closes its doors after the doors have been wide open for years then well, there's a big problem. It's not a good system for sure. So like tipsymocha said, it's good that new platforms such as Netfilx is pouring in money into K-dramas. Because, after all, what is life without K-dramas?

Kim PD suicide is like the worst drama of Dramalands that I've heard. I still feel bad for him :(

I wonder if the business has become so risky because of the extremely thin margin and all, there wouldn't be anyone doing it.

Yikes... Netflix had picked up Night Light from the start too...

I can finally relate, thanks Anthony Kim.

Which actors remain unpaid? What about the cast and crew? Call me cynical, but I can't help but feel UEE's salary alone would cover quite a few lesser mortals. If lead actors who don't need the money received payment while others did not, shame on them. I can't bring myself to feel too bad for those top earners who will easily make up the loss elsewhere. I'd rather see those actors advocate for the cast and crew lacking a voice. Why not tell the companies to pay the little man first and worry about their exorbitant salaries later?

Ooh! I think I just came up with the plot for a new Kdrama!