Korean advertisers forced to pull out from superstars' endorsements,

Korean advertisers forced to pull out from superstars' endorsements
Yahoo News

K-wave has contributed much to the Korean artistes' income but the wave is still unable to withstand the economy downturn. South Korea's advertising industry is cutting down on budget and forced to give up re-contracting top stars' endorsements of their products, implicating advertisers' hot favourites Bae Yong Jun, Song Yoon Ah, Son Yejin and etc.

The Chosun Ilbo, a Korean daily paper, pointed out that the cutting of budget in the advertising industry originated from the construction industry. Last September, Hyundai Engineering and Construction Company waved goodbye to their endorsees Son and Ko So-young. Richwood Electronics also did not renew their contract with Song. Keangnam, a housing developer also ended their five years advertising contract with Bae.

Many top celebrities have rejected invites to be casted in drama series in the past, as they deem themselves as "movie actors". With the current economic downturn, even drama productions are affected; artistes have resorted to lowering their remuneration expectations to secure casting. Song Hye Kyo and Hyun Bin from "The World That They Live In" are also said to have accepted similar terms as the production team, which is to receive delayed wage payment.

As for advertisements that have similar budget as drama productions, used to be considered as the "last fortress" to artistes; but now, advertisers are turned away by the high fees behind hiring top celebrities and have turned to cheaper and younger artistes as spokesperson.

One marketing personnel revealed, "It comes down to choosing between a cheaper spokesperson and reducing the frequency of ads." Obviously, the burden of costly spokesperson loses out here.