AI, AR, and Emotion Technology: The New Engine of K-Content [K, to Hollywood]

From Labor Cost Competition to Technological Efficiency Competition
Seamless Integration Within the Story Is Key

On-site at 'U-KNOCK 2025 in USA'

The venue for 'U-KNOCK 2025 in USA' brings together the latest Korean technologies. Terms such as "real-time rendering" and "virtual production" are exchanged at various booths, while American producers and investors visiting the site nod in approval as they watch demonstration screens. This is the forefront of K-content, where technology takes center stage.

Technology Becomes the Engine of Growth

According to its 2024 white paper, the Korea Creative Content Agency diagnosed that the growth of the content industry now stems from "technology." In fact, sectors such as games, visual effects (VFX), animation, and immersive production technology are expanding their share in both sales and employment. Companies are also rapidly increasing their investments in technology.

Woo Sungbae, Head of Content Finance Support at the Korea Creative Content Agency, explained, "There is no longer a boundary between content companies and technology companies, and the industry's future revenue sources are concentrated in artificial intelligence (AI), VFX, and digital asset technologies. Investors linked to the financial sector prefer these companies the most."

In line with this trend, the government has designated AI, extended reality (XR), and immersive production technology as core areas for development in its content industry strategy. The Korea Creative Content Agency is also expanding research and development (R&D) and investment-linked programs for companies, emphasizing a transition to a technology-centered ecosystem.

The industry's biggest focus is on the scope of AI applications. This is because AI is expanding beyond video editing and translation to include emotion analysis and real-time interaction. Especially in advertising, over-the-top (OTT) platforms, and gaming, both cost reduction and production speed improvements are being achieved, leading to increased investment in related technologies.

In North America as well, demand for AI, augmented reality (AR), and VFX is rapidly growing. As Hollywood studios begin to apply AI-based compositing, facial correction, and real-time rendering in post-production, the technological capabilities of Korean companies are naturally becoming a benchmark for comparison.

An industry insider commented, "In the past, it was a competition over labor costs, but now it has shifted to a competition over technological efficiency. Korea shows strengths in this field."

On-site at 'U-KNOCK 2025 in USA'

"Content Comes First, AI Is a Tool"

As technology takes the spotlight, reflection on the proper use of technology is also emerging. A representative from an American production company, who requested anonymity, clearly stated Hollywood's standards for AI production: "Content comes first, and AI is simply a technology naturally chosen to serve the story. Already, major platforms such as Amazon and Netflix have released works in which some scenes were produced using AI."

He added, "The key is not that it's made with AI, but that audiences accept it because the content is good. Studios want the same thing. Technology should work naturally within the story, not be AI for AI's sake."

A representative from a leading local investment firm said, "We let the content speak for itself. The core is to find unmet needs in the market." He continued, "Just because AI is used doesn't make a work good. What matters is whether the technology truly supports the story in a natural way."

This aligns with the direction of the technology demonstrations shown by Korean companies at U-KNOCK. Director Jang Sung-ho's statement that "technology does not replace creativity but expands it," and High Stranger CEO Kim Dongguk's philosophy that "data is not a yardstick for creation but a compass," are in line with Hollywood's evaluation standards.

On-site at 'U-KNOCK 2025 in USA'

Concerns Over Technological Polarization

As technological competition intensifies, new problems arise. Fields such as virtual production, real-time rendering, and emotion recognition AI require expensive equipment and specialized personnel, making it difficult for small and medium-sized production companies to access them. The industry refers to this as "technological polarization."

The fact that privacy regulations differ from country to country is also an obstacle. In particular, data-driven technologies such as emotion analysis and facial recognition face significant legal review and certification costs when entering overseas markets. A representative from a domestic production company said, "Responding to regulations is more challenging than acquiring equipment or personnel. International certification is virtually essential for data utilization."

U-KNOCK, which shows signs of expanding into "technology exports," could provide clues to solving these issues. A participating company CEO, who requested anonymity, said, "We were able to find solutions through conversations with local stakeholders. We use a method of de-identifying, encrypting, and separately storing all data. We are preparing not only for domestic privacy standards but also for overseas certifications."