On September 12th, 2025, Korean media outlet OSEN revealed that Netflix is tightening its belt when it comes to paying drama stars. The streaming giant is reportedly setting a soft cap of 300 million won (about $220,000) per episode to slow down the massive production cost of these shows.
The shift comes after budgets for K-Dramas like “When Life Gives You Tangerines” ($43.2 million) and “Squid Game” ($72 million) triggered a “salary bubble” where actors’ paychecks reached massive numbers. The situation drew global attention when Lee Jung Jae was rumored to earn $1 million per episode for Squid Game 2. While he said it was all interpreted as a “misunderstanding,” he then admitted in an interview that his pay was a significant amount.
Netflix has denied a strict cap, saying negotiations depend on the project and talent, but insiders confirm the trend is changing. With fewer dramas being made (141 in 2022 versus an estimated 80 this year), this new approach could reset the market while still leaving room for exceptions on mega-hit shows.