Sayart.net - Korean Film Industry Embraces AI Technology and Micro-Budget Productions to Combat Ongoing Market Decline

  • December 10, 2025 (Wed)

Korean Film Industry Embraces AI Technology and Micro-Budget Productions to Combat Ongoing Market Decline

Sayart / Published December 1, 2025 05:51 AM
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Korean filmmakers are increasingly turning to artificial intelligence technology and extremely low-budget production methods as the domestic cinema industry grapples with declining output, skyrocketing production costs, and disappointing box office performance. This experimental shift represents a significant departure from traditional big-budget filmmaking approaches that have dominated the Korean movie industry for years.

Director Yeon Sang-ho, renowned for his zombie blockbuster "Train to Busan" (2016) and the popular Netflix series "Hellbound," has emerged as a pioneer in this new wave of cost-effective filmmaking. His latest project, "The Ugly," demonstrates the potential of micro-budget productions after achieving remarkable commercial success despite its minimal financial investment. The film was produced with an exceptionally modest budget of approximately 200 million won ($136,275), yet managed to attract over 1 million moviegoers and generate roughly 11 billion won in revenue, resulting in a return that exceeded 50 times its original production cost.

Building on this unexpected triumph, major entertainment company CJ ENM and Yeon's production company Wowpoint recently announced their collaboration on a new low-budget project titled "Paradise Lost." This upcoming film will operate with a budget of around 500 million won and will feature veteran actress Kim Hyun-joo, who previously worked with Yeon on both "Hellbound" and the Netflix science fiction movie "Jung_E" (2023). The storyline will revolve around a mysterious case involving a boy who returns nine years after his disappearance.

The involvement of CJ ENM, South Korea's leading film distributor, in this low-budget venture signals a broader industry trend toward projects with reduced financial risk and faster production timelines. This represents a significant shift for major entertainment companies that traditionally focused on high-budget blockbuster productions.

Yeon has expressed his desire to systematize this experimental approach, making it possible for a wider variety of film genres to reach theaters without the financial constraints that often limit creative expression. "When I was young, I was inspired by legendary Asian films, and most of those films were low-budget movies. There is a power that only low-budget films have," Yeon stated following the Seoul premiere of "The Ugly" on September 10. He further elaborated, "I became ambitious about whether attempts like 'The Ugly' could be systematized, rather than just being a one-time experiment. I believe we need a new standard for making films, different from the criteria we've used so far, and I hope that standard can become systematized."

Another groundbreaking experiment in cost reduction comes from director Kang Yun-sung, who gained recognition for his successful crime thriller "The Outlaws" (2017). His latest work, "Run to the West," represents a pioneering effort in incorporating artificial intelligence technology to dramatically reduce both production time and expenses. The 60-minute film, starring acclaimed actors Byun Yo-han and Kim Kang-woo, holds the distinction of being the first feature-length movie to extensively utilize AI technology, particularly for complex visual effects including chase sequences, car explosions, and building collapse scenes.

Kang highlighted the remarkable efficiency that AI technology brings to filmmaking, noting that a car explosion sequence that would typically require four to five days to complete using traditional computer graphics methods was accomplished in approximately 10 minutes with AI assistance. This technological advancement helped keep the total production cost at an estimated 1.5 billion won, significantly lower than comparable action films.

During a press conference held on October 13, Kang emphasized that his decision to leverage AI technology was primarily motivated by the need to reduce financial risks while demonstrating the broad range of applications for this emerging technology. "I started the project because I wanted to prove that when making a film with AI, it is possible to implement blockbuster-level computer graphic effects even with a small budget," the director explained. He added, "Existing films can cost upwards of 10 billion won. Also, securing investment becomes difficult. That forces creators to limit their imagination and narrow their genres to fit within the budget they can secure."

However, Kang's ambitious AI experiment appears to have fallen short of audience expectations and commercial viability. Following its theatrical release on October 15, "Run to the West" managed to attract only 27,996 admissions, falling dramatically short of its break-even point of at least 200,000 tickets. This disappointing box office performance serves as a sobering reminder that while technological innovation can effectively reduce financial risk and accelerate production processes, the ultimate success of such experimental filmmaking models still depends heavily on meeting viewers' high standards for compelling storytelling and overall production quality, regardless of the budget constraints involved.

Korean filmmakers are increasingly turning to artificial intelligence technology and extremely low-budget production methods as the domestic cinema industry grapples with declining output, skyrocketing production costs, and disappointing box office performance. This experimental shift represents a significant departure from traditional big-budget filmmaking approaches that have dominated the Korean movie industry for years.

Director Yeon Sang-ho, renowned for his zombie blockbuster "Train to Busan" (2016) and the popular Netflix series "Hellbound," has emerged as a pioneer in this new wave of cost-effective filmmaking. His latest project, "The Ugly," demonstrates the potential of micro-budget productions after achieving remarkable commercial success despite its minimal financial investment. The film was produced with an exceptionally modest budget of approximately 200 million won ($136,275), yet managed to attract over 1 million moviegoers and generate roughly 11 billion won in revenue, resulting in a return that exceeded 50 times its original production cost.

Building on this unexpected triumph, major entertainment company CJ ENM and Yeon's production company Wowpoint recently announced their collaboration on a new low-budget project titled "Paradise Lost." This upcoming film will operate with a budget of around 500 million won and will feature veteran actress Kim Hyun-joo, who previously worked with Yeon on both "Hellbound" and the Netflix science fiction movie "Jung_E" (2023). The storyline will revolve around a mysterious case involving a boy who returns nine years after his disappearance.

The involvement of CJ ENM, South Korea's leading film distributor, in this low-budget venture signals a broader industry trend toward projects with reduced financial risk and faster production timelines. This represents a significant shift for major entertainment companies that traditionally focused on high-budget blockbuster productions.

Yeon has expressed his desire to systematize this experimental approach, making it possible for a wider variety of film genres to reach theaters without the financial constraints that often limit creative expression. "When I was young, I was inspired by legendary Asian films, and most of those films were low-budget movies. There is a power that only low-budget films have," Yeon stated following the Seoul premiere of "The Ugly" on September 10. He further elaborated, "I became ambitious about whether attempts like 'The Ugly' could be systematized, rather than just being a one-time experiment. I believe we need a new standard for making films, different from the criteria we've used so far, and I hope that standard can become systematized."

Another groundbreaking experiment in cost reduction comes from director Kang Yun-sung, who gained recognition for his successful crime thriller "The Outlaws" (2017). His latest work, "Run to the West," represents a pioneering effort in incorporating artificial intelligence technology to dramatically reduce both production time and expenses. The 60-minute film, starring acclaimed actors Byun Yo-han and Kim Kang-woo, holds the distinction of being the first feature-length movie to extensively utilize AI technology, particularly for complex visual effects including chase sequences, car explosions, and building collapse scenes.

Kang highlighted the remarkable efficiency that AI technology brings to filmmaking, noting that a car explosion sequence that would typically require four to five days to complete using traditional computer graphics methods was accomplished in approximately 10 minutes with AI assistance. This technological advancement helped keep the total production cost at an estimated 1.5 billion won, significantly lower than comparable action films.

During a press conference held on October 13, Kang emphasized that his decision to leverage AI technology was primarily motivated by the need to reduce financial risks while demonstrating the broad range of applications for this emerging technology. "I started the project because I wanted to prove that when making a film with AI, it is possible to implement blockbuster-level computer graphic effects even with a small budget," the director explained. He added, "Existing films can cost upwards of 10 billion won. Also, securing investment becomes difficult. That forces creators to limit their imagination and narrow their genres to fit within the budget they can secure."

However, Kang's ambitious AI experiment appears to have fallen short of audience expectations and commercial viability. Following its theatrical release on October 15, "Run to the West" managed to attract only 27,996 admissions, falling dramatically short of its break-even point of at least 200,000 tickets. This disappointing box office performance serves as a sobering reminder that while technological innovation can effectively reduce financial risk and accelerate production processes, the ultimate success of such experimental filmmaking models still depends heavily on meeting viewers' high standards for compelling storytelling and overall production quality, regardless of the budget constraints involved.

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