South Korea Releases 2 AI Feature Films as Box Office Revenue Stays 45% Below Pre-Pandemic
Updated
Updated · CNN · May 26
South Korea Releases 2 AI Feature Films as Box Office Revenue Stays 45% Below Pre-Pandemic
5 articles · Updated · CNN · May 26
Two fully AI-generated features — sci-fi courtroom drama “I’m Popo” and period piece “Man in Hanbok” — opened in South Korean cinemas on May 21, marking a broader push from studios to use AI in feature filmmaking.
A 45% slump in domestic box office sales and rising production costs are driving that shift, with films budgeted above 3 billion won falling to 20 last year from 40 to 50 annually before the pandemic.
Studios say AI can sharply cut time and spending: CJ ENM’s 60-minute AI-hybrid horror film “The House” cost 500 million won and was shot in four days, while “Run to the West” used AI tools said to be 10 times faster and half the cost of traditional CGI.
Government backing has accelerated the trend, with Seoul tripling its 2026 AI budget, earmarking 8 billion won in emergency film support for advanced-tech productions, and channeling another 19.8 billion won into AI content.
The rapid adoption still faces resistance over job losses, copyright and artistic quality, and early audience demand remains uncertain — “Run to the West” drew only about one-seventh of the admissions needed to break even.
With AI now creating entire films, can the unique soul of K-cinema survive the government's push for automated efficiency?
As Hollywood battles AI in court, can South Korea’s new laws prevent a copyright crisis for its creators?
60% Revenue Crash in Korean Cinema: The High-Stakes Bet on AI for Industry Survival
Overview
South Korea's film industry is facing a severe crisis, with box office revenue dropping by 60% and audience numbers falling by 70% between 2019 and 2025. This downturn was made worse by the COVID-19 pandemic, rising production costs, and major changes in how people watch movies. The popularity of OTT streaming services has shifted audiences away from cinemas to home viewing, while the cost of making a blockbuster has soared to over ₩20 billion. These challenges have made it much harder for filmmakers to succeed, pushing the industry to urgently seek new solutions.