Why Top Korean Agencies Like YG and C-JeS Are Shutting Down Actor Management Divisions
In a move that sent shockwaves through the Korean entertainment industry, two powerhouse agencies—YG Entertainment and C-JeS Studio—have officially exited the actor management business, despite managing some of Korea’s most in-demand stars.
Earlier this year, YG Entertainment announced it was restructuring to focus on its core business: music. As part of that shift, it shut down its actor division—an unexpected decision given its impressive actor roster, which included Kim Hee-ae, Cha Seung-won, Yoo In-na, Lee Sung-kyung, Jang Ki-yong, and more.
Just as the industry was processing YG’s move, C-JeS Studio followed suit in April. C-JeS, home to Sol Kyung-gu, Moon So-ri, Ryu Jun-yeol, Ra Mi-ran, Park Sung-woong, Uhm Ji-won, and Song Il-gook, also declared its withdrawal from managing actors. The agency cited a focus on restructuring and cutting unnecessary expenses to prioritize content and music production.
This sudden industry pivot raised the question: why would agencies drop actor management when they represent such top-tier talent?
The Money Doesn’t Match the Stars
According to industry insiders, the biggest issue is the uneven revenue structure between actors and agencies. In most cases, contracts heavily favor the actor—often offering them 80–90% of profits. For agencies, especially when factoring in staff salaries and production costs, this results in a near-impossible profit margin.
A 15-year industry veteran explained:
“Managing top actors is often a loss. Many lead actors command profit splits of 8:2 or even 9:1, leaving very little for the agency.”
This is especially unsustainable in an era where fewer projects are being produced, and the ones that do get greenlit take longer to shoot—driving up costs for the agency while delaying earnings.
Rising Risk, Fewer Rewards
Another insider noted that nurturing rookie actors is no longer feasible in today’s climate.
“With fewer dramas and films being made, it’s harder to invest long-term in new talent. Agencies are forced to lean on expensive A-listers, which only reinforces the cycle of financial strain.”
A third source pointed to a larger industry-wide issue:
“The entire system now favors ‘safe bets.’ Studios are paying outrageous fees to secure already-famous actors, making it harder for agencies to create new stars and remain profitable.”
They emphasized the need for structural change:
“The market needs to support fresh faces and lower-budget but creative projects. Without that, the industry risks stagnation—and actor management becomes a losing game.”
What’s Next for the Stars?
Many of the displaced actors have already signed with new agencies, from boutique management companies to rising startups. However, rookies and lesser-known talents are facing an uncertain future, with no clear pathway in a shrinking market.
As top agencies continue to retreat from actor representation, the long-term effects may reshape the very foundation of Korea’s entertainment business.