KT Corp. is set to enter the film production industry by leveraging artificial intelligence (AI) technology, marking a significant step following the recent creation of its Media Division. The division consolidates the company’s media and content affiliates and is led by an AI expert, highlighting KT’s commitment to integrating AI into its core operations. As the company pivots from a traditional telecommunications provider to an AI-driven enterprise, it aims to embed AI transformation (AX) across its media ventures.
Industry sources revealed on Dec. 12 that KT is preparing to launch an AI-powered film production business. A source familiar with the development stated, “Since forming the Media Division through last month’s organizational restructuring, KT has accelerated its push into new media businesses utilizing AI. Discussions, including script reviews and budget planning, have already been finalized with leading domestic film directors for the AI-based film production project.”
KT’s initial project will involve using AI to generate film backgrounds, while the creative direction and performances will remain under the control of human directors and live actors. This approach distinguishes KT’s efforts from fully AI-generated productions, where generative AI systems independently create virtual actors and environments. By incorporating AI into background production, the company aims to significantly reduce costs associated with set construction, location rentals, and extended shooting schedules. KT estimates that AI-assisted films could be produced at roughly one-third of the cost of traditional methods, based on internal comparisons of production expenses.
A telecommunications industry insider noted, “With cinema attendance plummeting and film production investments dwindling in the aftermath of the pandemic, AI’s cost-saving potential could transform South Korea’s film industry. KT’s strategy underscores its ambition to lead the emerging AI-driven media market.” According to the Korean Film Council, revenue from South Korean films in 2023 reached 598.4 billion won ($417.81 million), a sharp 69% decline compared to the pre-pandemic figure of 1.913 trillion won in 2019.
