The Korea Commercial Film Makers Union (KCFMU) has forced the Korea
Association of Advertising Agencies (KAAA) to make reforms on billing
practices.
The KCFMU - representing 124 member companies or 70 per cent of the
industry - labelled the previous practices as unfair and out-of-date and
had threatened to refuse advertising work if its demands were
rejected.
In the past, producers suffered from unfair and unreasonable pay terms
because agencies frequently did not sign contracts. A work stoppage
against the ad industry was averted after the KAAA agreed that agencies
had to sign contracts before any work could be initiated by
producers.
According to KCFMU general manager Bae Sukbong, producers will no longer
come under pressure from agencies to reduce costs after a price had
already been agreed on.
"The contract leaves room for ad agencies to change creative and
expressions freely," he said.
"Also, producers can ask ad agencies for prepayment in case of overseas
shooting or big-budget productions."
