Recently, South Korea has become a pioneer of AI cinema. In 2019, the Korean government committed to a “National Strategy for AI,” designed to designate South Korea as a leader, rather than “fast follower,” of AI research and development. This accelerated in 2026 with the AI for All Initiative, under which President Lee Jae Myung promised to triple last year’s spending to give every citizen free access to generative AI tools mediated through Kakao, SK Telecom, and KT. Multimodal generative AI tools and cinematic AI workflows also became the central topic of discussion earlier this month at the Busan International Film Festival (BIFF) Asian Contents & Film Market (ACFM).

The Outlaws (2017)

The question of whether the future of K-cinema is in the hands of AI, however, is a different question. The recent buzz of AI-generated K-cinema started with KANG Yun-sung, director of The Outlaws (2017), who opened the floodgates with the world’s first-ever AI-generated feature film, Run to the West (2025). This 60-minute action film distributed by CJ CGV follows a group of five through purgatory in their attempt to escape eternal damnation. Other attempts, each increasing in length and cost-efficiency, soon followed. In April 2026, webtoon artist KIM Il-dong made his directorial debut with I’m Popo (2026), a self-reflexive science fiction film about a robot cop designed to identify criminals before crimes occur. In the same month, LEE Sang-hoon, director of Windmill (2023), released the Renaissance-Joseon-era historical fantasy Man in Hanbok (2026) in theaters. In October 2026, the autonomous-robot narrative Steelay (2026), directed by SEOL Woo-in, broke records with a runtime of 90 minutes.

Media discussions following these AI features have both marveled at technical efficiency and lamented poor box office performance. It is no secret that industry professionals are increasingly looking to generative AI to revitalize an otherwise stagnant film market. However, the financial calculus is still unclear. Run to the West cost KRW 1.5 billion – which is less than one-fifth of a commercial production – but sold just shy of 28,000 admissions, when it would have required at least 200,000 to break even. I’m Popo and Man in Hanbok attracted fewer than 1,500 admissions combined, and both films were pulled from theaters less than two weeks after their premieres. While Steelay cost 30 percent less than Run to the West to produce 30 percent more content in runtime, its popular reception has yet to be seen.

On the labor front, regulation, rather than restriction, is encouraged. In September 2026, the Korea Broadcasting Actors Labor Union emphasized prioritizing actor rights and “proper AI use” instead of banning AI outright. Relevant associations on media governance headed by generative AI film start-ups have also begun to emerge over the past few months, including the Korea Association of AI Film Directors (KAIFD).

12.12: The Day (2023)

Relationships with international tech companies are also unfolding. At ACFM this year, KIM Sung-soo, director of 12.12: The Day (2023), unveiled the eight-minute short Worm Train (2026), made with the Chinese AI model Kling 4.0. Kling has said it is targeting Korea’s professional creative market and has formed partnerships with the Korea AI Content Creator Association (AICCA) and Korea Artificial Intelligence Association (KORAIA). Meanwhile, US-based Utopai – purportedly the “world’s largest independent AI-native film and TV studio” – partnered with CJ ENM to reduce K-drama costs. Utopai is also home to YANG Hyo-joo’s upcoming coming-of-age drama Half Moon, which is scheduled for release in 2027. Yang previously directed the short Broken Night (2010).

Overall, it increasingly seems that blockbuster directors, low-budget filmmakers, and K-drama production studios are willing to experiment with these generative AI tools to save on production costs. However, multimodal AI and cinematic AI workflows will stay relevant only as long as they are not only cost- and labor-efficient but also profitable. Moving forward, the question of AI’s continuation will remain in the hands of consumers. The future of K-cinema will ultimately depend on what audiences are willing to pay to see.

Written by Grace Han
Edited by KOFIC