AI Film Costs Could Soar to $3.66 Million, Korean Producers Warn

Korean AI production leaders warned that artificial intelligence could make feature films more expensive than traditional 35mm movie production. Speaking at the Taiwan Creative Content Fest in Taipei on November 8, industry executives detailed how token usage and iterative revisions create financial risks for long-form projects. These costs could soon exceed the material expenses of the celluloid era.

Kim Kwang-jib, founder and CEO of Studio Meta-K, stated that the token bill for a 100-minute film using premium commercial tools can exceed 500 million won. This amount is approximately $366,000. Kim noted that AI companies currently keep prices low as a marketing strategy while operating at a loss. He projected that a tenfold increase in token costs would push expenses to 5 billion won, or $3.66 million. This figure would challenge the efficiency of mid-budget Asian productions.

The financial structure of AI filmmaking differs sharply from digital video editing. In the digital era, shooting and cutting incurred no extra material costs. AI, however, requires payment for every re-render. Kim explained that if a client submits changes individually over ten days, the studio must pay for ten separate render passes. Batching changes into a single round reduces costs. Without meticulous preproduction, the final budget could surpass that of the film era.

Lee Sang-wook, head of the AI Content Lab at MBC C&I, agreed that budgeting is complex due to rapidly evolving tools. His lab produced a 139-minute feature titled Raphael. The project took more than a year to complete. New software updates arrived weekly during production. Lee noted that a single shot could require ten artists for a full day. Using outdated technology would make scenes appear dated to modern audiences.

Raphael is created by emerging directors with support from the Korean Ministry of Culture, Sports and Tourism. The film is set to open in Korean cinemas on November 25. Lee explained that the cinema release was chosen to demonstrate that AI studios can take commercial risks through IP development. This follows an earlier initiative in 2024 where the lab produced AI shorts that received a cold market reaction.

In the advertising sector, cost savings are already evident. Kim cited a Pizza Hut commercial that originally cost 2 billion won to produce over eight months. Studio Meta-K recreated the spot in two weeks for approximately 30 million won. This reduced the expense by more than 90%. For drama productions, Kim favors a hybrid model that combines live-action star performances with AI-generated background elements. Studio Meta-K, founded in 2022, has completed over 100 commercial projects. The company recently raised 10 billion won in funding and is preparing for an IPO next year.

The company is collaborating with Busan's Dongseo University to convert Im Kwon-taek's 1993 classic Seopyeonje into an animated feature. The project targets a theatrical release next summer. The experts also discussed employment shifts. Kim predicted that large on-set crews will become rarer, with roles like drone operators potentially disappearing. Lee compared the transition to the introduction of sound or digital cameras. He noted that actors have generally welcomed AI, particularly for handling dangerous scenes.