[Economist] Limitless Potential of AI: What Happens When It Meets K-Content [Specialist View]

By Harry Hyun (Director & Writer / CEO of MooAm Production) K-Content is no longer the exclusive domain of massive capital or prominent actors. As someone running a small production company, I experience firsthand how rapidly the content creation environment is changing. Just a few years ago, I questioned whether it was even possible for a project at our scale to enter international film festivals. Things are different now. AI has transformed the entire creative process, making it far easier than before to produce experimental and original K-Content—and to bring it onto a completely new stage.

According to data from the Korean Film Council, total box office revenue in 2023 stood at KRW 1.2614 trillion, roughly 65.9% of the 2019 figure. Attendance also fell to about 55.2%, indicating that the theater-centric film industry has yet to fully return to its pre-pandemic levels. Meanwhile, OTT (Over-The-Top) platforms have quickly risen to prominence, drastically altering content consumption patterns. However, challenges such as production budgets and manpower remain daunting.

Looking at the global potential of Korean pop-culture exports (K-Content), the Ministry of Culture, Sports and Tourism reported that Korea’s broadcasting and video content exports reached about USD 1.2 billion in 2021—a figure that has grown steadily over the years. Yet in the wake of the pandemic, heightened demands for localization and diversity have placed greater importance on how best to reach international audiences. Against this backdrop, recent progress in AI technology is giving content creators more opportunities to tackle global markets at lower costs and in less time than ever before.

In the past, creating computer graphics (CG) demanded enormous budgets and specialized personnel; even a short few minutes of footage could easily cost hundreds of millions of won. But with the advent and rapid evolution of generative AI, emerging creators and small production companies are now able to generate realistic visuals and sound in a relatively short period.

A small team like MooAm, lacking in massive funding, can leverage AI to achieve eye-catching audio-visual quality, thereby gaining more opportunities to compete at international film festivals once dominated by major studios and renowned directors.

MooAm Production is a small company comprised mostly of creators in their late 20s. Despite not having flashy star casts or multi-billion-won budgets, we have consistently produced experimental web dramas, short-form content, and independent films, all while knocking on the doors of overseas film festivals. In particular, our recent project, “Tales By AI,” reimagines Korean folktales as dark sci-fi thriller short-form series.

One such example is “Tales By AI – Natasha and I,” a short animation restructured via AI from Baek Seok (poet)’s poem “Me, Natasha, and the White Donkey.” Previously, the required CG post-production and set building would have entailed extensive budgets and manpower. Now, we use AI for much of the process, finishing the film in only two weeks at about 20% of the typical CG cost—yet still achieving a high level of quality.

The film was selected for the Korea Creative Content Agency’s AI Content Festival, earned a nomination at AI Film Award Venice 2024, and was chosen as a finalist at the New Wave AI Film Festival in the United States, as well as being featured at the Türkiye AI Film Festival. These achievements prove that AI can unlock previously unattainable genres and scale for small organizations. Going one step further, MooAm collaborates with individual AI artists and emerging creators to produce short-form content and short films with teams of merely three or four members—projects previously unthinkable. The shift in the creative ecosystem triggered by AI demonstrates that even small-scale productions can make an impact on the global stage.

More recently, MooAm has embarked on a large-scale project with the Dong-Ah Institute of Media and Arts, aiming to reinterpret 26 classic Korean folktales with generative AI. By reviving well-known stories such as Heungbujeon, Janghwa Hongryeon, The Brother and Sister Who Became the Sun and Moon, and The Story of Sim Cheong in line with modern tastes, we hope to create short-form series with global appeal.

This initiative is linked to the P³BL (Projects, Problems, Products-Based Learning) approach in the school’s Department of Video Production, providing students with direct experience of AI integration within production. Previously, such tasks would have required hefty budgets and large crews, but generative AI has simplified the process, allowing students to produce impressive work in a short period.

At first, I was concerned that they might find generative AI daunting. However, within just a few days, the students were generating surprisingly high-quality footage—transforming Korean folktales into sci-fi or fantasy, and even reconstructing modern Korean literature via AI. It reaffirms the notion that AI is a technology accessible to anyone armed with a certain degree of intuition and hands-on practice.

Some students have already set their sights on using AI for their graduation projects, while others focus on transforming novels and poetry into animated pieces. This is more than a mere tech experiment; it’s a process requiring creative planning to determine which stories are expanded and how they’re presented.

Such a program also represents an ideal model of industry-academia cooperation. By actively participating in the entire cycle of AI-based content planning, production, and marketing, students gain real project experience that goes far beyond theoretical understanding. At the same time, a small production company like MooAm can incorporate fresh ideas and youthful perspectives to refine each project further.

A growing number of domestic and international companies are also leaning into AI. CJ ENM’s short film “M Hotel”—just six minutes and 31 seconds long—incorporated AI technology into a mysterious narrative and earned a host of awards in New York, Cannes, and at AI-related film festivals. Notably, while older AI-generated works often showcased flashy but unrealistic visuals, “M Hotel” demonstrates delicate character emotions and a sense of realism, exemplifying the fusion of storytelling expertise and technological innovation.

KT (Korea Telecom, transitioning to an AI company) has established a media division and entered the AI-powered film production arena. Some predict that delegating parts of post-production and location scouting to AI could cut existing production budgets by as much as two-thirds. If KT, now striving to become an AI-centric entity, fully commits to media, it could rapidly transform Korea’s film and drama production landscape.

Overseas, Lionsgate is collaborating with the AI startup Runway in an effort to replace certain special effects and backgrounds with AI. Although technical limitations persist, the potential cost savings for budget-conscious independent filmmakers is already generating excitement. It may still take time for AI to effortlessly handle multi-minute footage, yet current developments suggest that milestone is not far off.

AI Adoption: Is Everything Perfectly Rosy?

Of course, accelerated AI adoption will inevitably alter existing employment structures in film and television production. CG artists and post-production specialists may see their roles evolve, while new positions emerge that revolve around managing AI models. This is more than a technological shift; it could produce seismic changes across the entire content industry ecosystem.

Large-scale corporate projects must carefully consider how to integrate existing staff with newly hired AI operators. Even for small production companies like MooAm, we must decide where to draw the line between using AI and relying on human creativity—and how best to combine both.

As companies, creators, and educational institutions worldwide embrace AI all at once, the entire value chain of content creation is undergoing reorganization. I firmly believe that small teams, young talent, and AI can come together to produce results beyond anyone’s wildest dreams. A new AI artist I met at an AI Content Festival recently noted, “I’m creating work by myself that would have been unimaginable before, and I’m so excited to debut as both creator and director.”

In earlier times, producing a sci-fi film required budgets of hundreds of millions—or even billions—of won, plus large crews. Now, a single creator can craft a trailer and pitch it to overseas buyers. That’s the era we’re in.

MooAm witnessed this firsthand when we ran AI booths at the K-Expo in Indonesia and the Asia TV Forum (ATF) in Singapore. Screening an AI-generated sci-fi trailer on the spot and booking business meetings right there would have been unimaginable just a few years ago. The fact that what was once impossible is now real is proof of how rapidly the industry is evolving.

Still, not all of these changes are guaranteed to be positive. Questions surrounding copyright, ethics, and data bias have become core debates that may determine whether the AI industry thrives in the long run.

Copyright is a prime example. A significant portion of the data used to train AI models—texts, images, and videos—comes from the internet, where original creators hold rights. The question of whether it’s permissible to use such materials without explicit permission is growing more contentious. Artists claim their works are being exploited without compensation, filing lawsuits for substantial damages, while corporations argue that publicly available data falls under fair use.

Legal action taken against Midjourney and Stability AI has reportedly moved to the discovery phase, and final rulings could profoundly reshape the AI ecosystem. The entire industry is watching anxiously.

Ethically, AI may reflect societal and cultural biases, potentially excluding or misrepresenting certain groups. For instance, some AI-based image generators have repeatedly produced the same race or gender when prompted to show a “CEO.”

Such issues can be a serious risk for K-Content targeting global audiences. If a final product conveys a skewed message, any resulting controversy may come too late—by which point consumer trust could already be lost.

Data bias is equally concerning. If AI models are primarily trained on data from a particular language or cultural sphere, they may fail to represent other perspectives accurately, resulting in unnatural or awkward output. Attempts to preserve an authentic “Korean vibe” could be frustrated by AI’s Western-centric training data, while going overboard to chase global audiences might dilute Korea’s own storytelling essence.

Smaller production companies like MooAm, freelancers, and emerging AI creators are especially vulnerable. Even large corporations face major legal risks and can struggle to respond quickly. One serious controversy could wipe out the trust or reputation built over many years. For this reason, creators must thoroughly vet their data and address ethical and legal questions throughout the production process.

Nevertheless, I encourage the creators and students I meet to face AI head-on. Our experiences with “Tales By AI” receiving a positive response at film festivals abroad, and the students at Dong-Ah Institute of Media and Arts producing advanced footage in a short time, have convinced me that AI is indeed accessible with a blend of intuition and practice.

Furthermore, Korean-themed narratives still maintain a strong following in global markets, providing a major opportunity. By transforming classic folktales or modern literature into genres like sci-fi, horror, or fantasy—and then coupling them with AI-based visuals—we can create something entirely new. In fact, overseas buyers have praised MooAm’s short films for reinventing familiar stories in refreshingly creative ways.

A small team need not be deterred. MooAm regularly partners with individual AI artists and creators, working with minimal staff to produce high-quality content in a short time. Our belief remains that those bold enough to seize these new opportunities will lead the market.

Ultimately, the expanded creative possibilities and enhanced efficiency that AI offers could propel K-Content to the next level on the global stage. While issues of copyright, ethics, and data bias are growing ever more pressing—and large-scale legal battles, such as The New York Times vs. OpenAI, appear increasingly probable—AI can be a formidable tool if we use it responsibly and prepare for these challenges in advance.

From giant companies like CJ ENM, KT, and Lionsgate to smaller outfits like MooAm, as well as new AI authors and solo creators, we are all moving forward with AI in our own ways. It’s a sign that content production no longer hinges solely on capital and connections. With high-quality storytelling, bold ambition, and AI as a catalyst, the possibilities for K-Content to expand beyond its current horizons are truly limitless.

Of course, AI alone cannot solve every problem. As the industrial ecosystem and workforce structures evolve, existing roles may be reduced, and copyright or ethical issues could block progress at any time. However, if conscientious creators and producers proactively tackle these risks, AI could become a powerful asset that helps the industry flourish even further.