Director Kang Yoon-sung, who made the movie The Outlaws and the drama Casino, has launched a new experiment led by artificial intelligence (AI). The film he directed, Middle Realm, is the first in Korea to introduce AI across the entire process of a commercial film (a movie made with large-scale capital and released through a nationwide distribution network), and it was produced with support from KT. Many say this attempt could change the paradigm of Korea's film industry, which has fallen into a slump.
According to the Korean Film Council (KOFIC), revenue for Korean films in 2024 was 691 billion won, down 29% from 2019 (970.8 billion won), before COVID-19. With online video services (OTT) gaining popularity, audiences have not been going to theaters, reducing film revenue, and production costs have risen due to a double whammy of soaring appearance fees as actors' recognition has increased through global platforms like Netflix. Among domestic commercial films (production costs of 3 billion won or more) released last year, seven passed the break-even point, down 63% from 2019 (19), before COVID-19. In an interview with ChosunBiz on the 17th, Kang said, "If you use AI, you can turn imagination into reality and significantly reduce production costs compared with before," adding, "AI will be a 'relief pitcher' that can break through the structural crisis of Korea's film industry." The following is a Q&A with Kang.
―How did this project start?
"Last year, KT proposed making a short video using AI technology. When I watched several AI short videos then, I became convinced that this technology could change production methods in the film market. So I counterproposed that we make a full commercial movie. That is how Middle Realm began."
―Unlike conventional films, what specific role did AI play?
"AI completely changed production efficiency. In the past, to shoot a car explosion or a truck crash scene, you first filmed the vehicle, then shot the actor separately on a green screen and composited it using computer graphics (CG). But AI can create an explosion scene from just one photo of an actor standing. AI handled special effects, background compositing, and creature design. The technology advanced by the day even during filming, so scenes that were initially impossible later became feasible."
―Did that shorten the production period as well?
"It took about seven months from planning to final post-production. That timeline would have been impossible with conventional methods. Thanks to AI, we were able to complete scenes we had imagined but found difficult to realize much more quickly. Shorter production time means we can reduce production costs. Of course, because it depends on the specific production situation, I will avoid citing concrete figures on how much the schedule and costs were shortened and reduced compared with conventional shooting. But I want to be clear that AI contributes significantly to cutting production time and costs. I hope our first attempt succeeds and triggers a paradigm shift that introduces AI into Korea's film industry."
―In what form did KT participate?
"KT fully funded the production of this film. The intent was to use it for a 'meaningful content experiment.' It was not an investment to earn revenue, but participation as a co-planner of an AI film. KT did not seek commercial returns, and if there were profits, it agreed to give incentives to the actors and staff. It was truly an 'experimental investment.' The actors and staff who took part in this film also agreed with the plan to conduct an experiment to save Korean cinema, and decided to participate for about one-third of what they usually received."
―What changed the most by using AI?
"The biggest change is that the 'barrier to planning' has disappeared. In the past, even if you wrote a script, production was often blocked because 'this costs too much.' By using AI, you can make imaginative films with a much smaller budget. In other words, an era has opened in which blocked imagination becomes reality."
―There are also concerns that AI could replace human creators.
"In truth, videos made by AI have no such thing as emotion. An actor's emotional arc and the empathy felt by audiences are ultimately created by people. AI is merely an 'assistant' that boosts efficiency; it cannot replace human creativity and emotion. Rather, the more AI advances, the more important the human role becomes."
―What is the current situation in the Korean film market?
"Right now, Korean cinema is in a structural crisis. As OTT has become the mainstream, audiences are not going to theaters. Meanwhile, actors' appearance fees keep rising thanks to global OTT services like Netflix. As production costs grow, opportunities to make movies will decrease. I think AI can change this structure. You can make the stories you imagined into films on a small budget, and that will lead to new investment."
―What conclusions did you draw from this project?
"I do not think AI is a technology used only to reduce expenses. I would define it as a technology that turns imagination into reality. I saw the potential to breathe new life into a dying film industry. This film Middle Realm is an experiment that verified that potential, and I believe it is the starting point for Korea's film industry to come back to life."
―Any plans for a sequel?
"Middle Realm has only half of its story revealed. It was planned as a Half film, and the ticket price was set at 50% of the regular price. The running time is 61 minutes, shorter than a typical film. The script for the sequel, Middle Realm 2, is already complete, and KT is reviewing additional support depending on the performance of Part 1. The era of AI films has just begun."