Production Costs Range from $5,000 to $200,000

▶On the 3rd, a Korean advertising agency films a TV commercial in a studio. Most commercials produced in Koreatown select ordinary people as models, with TV commercial modeling fees generally ranging from several hundred dollars to $1,000.
From a Few Hundred Dollars to $50,000?

In Korea, modeling fees for famous entertainers and sports stars appearing in commercials usually begin in the hundreds of millions of won. How much, then, are models paid for commercials produced in Koreatown?

The amount naturally varies, but the difference is greater than most people might expect.

For LA-area newspaper advertisements featuring only photographs, ordinary models generally receive fees starting at $100. However, film commercials requiring even ordinary models to perform some acting typically pay approximately $500.

TV or radio hosts who are familiar to consumers receive slightly higher modeling fees of approximately $1,000 per commercial.

People with experience in modeling competitions or beauty pageants may receive more than $1,000.

Advertising industry representatives explained, “Unlike Korea, there are no specialized modeling agencies here, so models are selected from acquaintances or through simple open recruitment.” They added, “Because many lack professional experience, it is common for models to quit after saying things such as ‘I could not get my parents’ permission’ or ‘I cannot take photographs like these.’”

Naturally, unlike Korea, there is no concept of exclusive contracts or single six-month contracts.

Because of the characteristics of the immigrant community, advertisements for mainstream companies often use voice-overs without models. Local voice actors generally receive $100~$200, while professional actors receive approximately $600~$1,000.

Director Simon Kim of Petra Film, which produced advertisements for Ford and SBC, said, “We use Korean voice actors to differentiate our work.” The cost in such cases is approximately $300~$500.

Who, then, is the highest-paid advertising model in Koreatown?

It is professional soccer player Hong Myung-bo, who models for Hanmi Bank and Dowon I Korean Medicine Clinic. As one of the only true celebrity advertising models in Southern California’s Korean community, his fee is also high.

Hanmi Bank paid Hong an annual modeling fee of $50,000, the same amount as last year. Senior Vice President Hong Hyung-gi explained, “This amount includes participation in various events as well as advertisements.”

Brandon Choi, president of the advertising agency Sping, which recently selected an ordinary child and mother as TV commercial models through an open recruitment process, said, “In Korea, advertising production costs and modeling fees are calculated separately.” He added, “Although modeling fees vary, they account for only a small portion of the total advertising production budget.”

For TV commercials, most Koreatown companies use Beta video cameras, resulting in production costs of approximately $5,000. Using a broadcast-quality digital camera increases the cost to approximately $7,000~$8,000.

However, high-quality commercials for mainstream companies cost approximately $100,000~$150,000 per production. Commercials involving automobiles or requiring specialized equipment and locations may cost close to $200,000 each.