AIhybrid

SEOUL, May 1 (UPI) — South Korean entertainment giant CJ ENM premiered its AI-hybrid feature film The House this week, presenting the low-budget occult thriller as a test case for how artificial intelligence could help revive a struggling film industry.

The 60-minute film, unveiled Thursday at CGV Yongsan I’Park Mall in Seoul, follows a young woman who can see dead souls after moving into a decrepit apartment building. It is scheduled to be released Friday on CJ ENM’s streaming platform TVING.

Taken on its own merits, The House is far from innovative. It scans as a fairly forgettable horror flick, leaning heavily on gloomy atmospherics, digital gore and jump scares in service of a paper-thin story.

But behind the scenes, the film represents a cutting-edge use of fast-evolving technology that dramatically reduces both costs and production time.

CJ ENM said the actors’ performances were filmed entirely indoors on a green-screen stage, while every background and visual effect was created with AI, using Google tools including Imagen, Nano Banana and Veo.

“We have expanded the production paradigm,” Jeong Chang-ik, head of CJ ENM’s AI Studio and lead producer of The House, said at a panel discussion after the premiere Thursday.

The film cost about $337,000 to produce — at least five times less than a comparable conventional production, Jeong said.

He added that the efficiency gains could be especially significant for genre films, disaster movies and other effects-heavy productions.

“From our perspective, there isn’t much difference in production costs between making a scene where a main character drinks coffee at a cafe and making a scene where that main character defeats a monster,” he said. “In reality, there is a huge difference, but in terms of AI, the difference is not much.”

Actor Kim Shin-yong, who plays a security guard in the film, said the process differed sharply from traditional chroma-key filming, where performers must imagine effects that are added later.

“I could perform while seeing the completed backgrounds in real time, which made immersion much better,” Kim said, adding that the entire shoot took just four days.

The rapid adoption of AI has raised alarm across the global entertainment industry, helping fuel strikes in Hollywood in 2023 amid concerns over job losses and creative control. But the technology is already being widely integrated across production pipelines.

The team behind The House said the goal is not to replace actors or creators, but to integrate AI into existing production workflows.

Ahn Sung-min, director of customer engineering at Google Cloud Korea, said AI is being used not to “take the place of creation,” but to help realize creators’ intent within the filmmaking process.

CJ ENM executives also pushed back on the idea that AI could replace human performers.

“We are actually certain that AI cannot replace the acting of actors,” Baek Hyun-jung, head of content innovation, said. “That’s why we designed this hybrid approach — to preserve the actor’s unique expressiveness while using AI for backgrounds and effects.”

The experiment comes as South Korea’s film industry faces mounting pressure from rising production costs, reduced investment and competition from streaming platforms.

Korean Film Council data showed theater admissions fell 13.8% in 2025 from a year earlier, while revenue from domestic films plunged 39.4%.

Despite the global popularity of Korean content, Culture, Sports and Tourism Minister Chae Hwi-young said in September that the reality facing the country’s creative industries is one of “despair.”

He singled out the film sector as the most vulnerable, noting the number of commercial Korean productions has dropped from around 60 per year to about 20 in 2025.

“Investment has stopped, and the film production scene has run out of money,” Chae said. “The ecosystem of the film industry is collapsing to the point where filmmakers can’t make a living.”

Some A-list filmmakers have responded with dramatic measures such as “microbudget” productions. Train to Busan director Yeon Sang-ho’s 2025 film The Ugly was made for around $150,000 and performed respectably, drawing more than 1 million theatrical viewers before landing on Netflix.

Against that backdrop, AI is increasingly being seen as a potential lifeline for the industry.

For CJ ENM, The House builds on a growing slate of AI-driven projects, including the animated series Cat Biggie, released online last year.

The new film is less a finished template than a proof of concept. Its visual seams remain visible, and panelists acknowledged that AI tools still struggle with consistency, particularly in longer narrative works.

Still, executives said AI will likely become inseparable from mainstream filmmaking.

“I think AI will be the next generation after CGI,” Baek said. “The era in which the boundaries between regular movies and AI movies disappear will surely come quickly.”