Reforms for Korea's producers, agencies

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- representing 124 member companies or 70 per cent of the industry - labelled the previous practices as unfair and out-of-date and had threatened to refuse advertising work if its demands were rejected.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."

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