"These days, we hear people say, 'I want to make something good, but I don't have the money.'"
At a meeting on July 23 at the Korea Cultural Information Service in Sangam-dong, Seoul, hosted by the Ministry of Culture, Sports and Tourism, industry experts discussed the challenges facing the AI video sector, which has encountered significant cost barriers this year.
The meeting included Minister of Culture, Sports and Tourism Choi Hwi-young, along with representatives from AI content production companies and the film and video industry, who addressed the difficulties and potential policy support for the AI video industry.
Participants expressed concerns over the skyrocketing costs of AI video production, including token fees and electricity expenses.
Yang Yoon-ho, director of the Korean Film Artists Association, reported, "To produce a high-quality 15-minute video, the cost was around 3 million won last year, but now it has risen to nearly 15 million won." He added, "The more tokens you use, the better the results, leading to a potential class divide based on subscription fees for production tools."
AI content producers are facing similar challenges. Kwon Han-seul, CEO of Studio Freewill, noted, "There was a perception that AI would be cheaper and more efficient than traditional methods, but recently, while the quality of videos has improved, the costs have risen to match traditional methods. We spend 200 million won a month on AI credits, totaling 2 to 3 billion won annually." He lamented that expectations of reduced disparities in creativity due to AI have now resulted in increased inequality.
Companies are investing 2 to 3 billion won in research and development to establish their own pipelines using open-source technologies, but small businesses find it challenging to implement such measures.
Moreover, to supply AI-generated content to global OTT platforms, companies must overcome existing quality thresholds.
Hyun Hae-ri, CEO of Muam, stated, "When trying to deliver AI-generated content to global OTTs, it often fails to meet the quality control standards set for traditional live-action videos." He emphasized the need for new quality standards that reflect the unique characteristics of AI content, noting that even hundreds of cuts may not meet the specifications.
The structural limitations of the domestic AI ecosystem were also highlighted. Jegal Seung, head of Dexter Studio, pointed out that most generative AI tools currently in use are services from the U.S. or China, resulting in domestic companies paying substantial fees to foreign firms each year.
Hong Seong-ho, CEO of Locus, added, "Token costs must be paid in dollars, while foreign competitors receive tax refunds and cash rebates, putting our companies at a relative disadvantage."
Additionally, calls for support in establishing AI hubs, subsidizing token fees and electricity costs, and project-based labor cost assistance were voiced.
There were clear differences of opinion regarding AI training data and copyright issues. Some attendees pointed out that the prohibition of AI training on the vast amount of video content accumulated in South Korea has blocked the ability to represent Koreans in AI-generated videos. Conversely, others stressed the need to prevent unauthorized use of videos for AI training through surveys.
Minister Choi Hwi-young stated, "As the government promotes AI foundation models and sovereign AI, we need to actively discuss what national projects are necessary in the AI film and video sector." He added, "Infrastructure and hub development are beyond the capacity of individual companies, so we must unite to push for national-level projects."
* This article has been translated by AI.
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