"A Small but Strong Studio"... KT Studio Genie's Next Strategy

Jae Oh, Head of New Business at KT Studio Genie, Interview
"An organization built by recombining core competencies... Each team is a company"
AI Production to Be Internalized, Short-Form Content Approached with Caution

The advent of the global online video service (OTT) era is shrinking the video content rights market. KT Studio Genie's business is not immune to this trend. It has become increasingly difficult to ensure growth through dramas—which have long served as cash cows—or through content distribution transferred from KT Alpha. In response, the company has established a New Business Division to seek a breakthrough. In a recent interview with The Asia Business Daily, Jae Oh, Head of the New Business Division at KT Studio Genie, stated, "This is an organization created by recombining the company's core competencies."

O Gije, Head of New Business Division at KT Studio Genie.

The New Business Division spans five distinct areas: film, short form, web novels, digital content, and channel operations. When asked why these areas were grouped together, Oh pointed to the way the organization is managed. "While the company does not have separate labels, each team is run as a small company, and each team leader is regarded as a CEO of their respective business," he explained. Although each business is unique in its nature, the approach to delegation and support remains the same across the board.

Small but Strong Studio

KT Studio Genie aims to establish itself in the film industry as a small but strong studio, akin to international companies like A24 or Blumhouse. With distinctive planning, it hopes to create new avenues in the Korean film market, which has been suffering from an investment drought. The focus will be on small to medium-sized films with production costs below 5 billion won. The company has already created a risk management model through joint investments with Showbox.

The reason for incorporating films into the New Business Division is slightly different. Oh explained, "From an economic perspective, dramas and films are based on the same production elements." The rationale is that there is no reason not to apply KT Studio Genie's story development expertise, which has been developed over five years of drama production, to the film business. The New Business Division plans to leverage this capability to expand its business infrastructure and broaden its sourcing of projects.

Drama 'Shinbyeong' Still Cut.

Four titles have been confirmed so far. Director Min Jin-ki’s "Shinbyeong The Movie" is preparing for release at the end of the year or early next year. Director Lee Seung-won’s "Not Ashamed" is in the editing stage, with a release targeted for the first half of next year. "Vengeful Spirit," directed by Hong Eui-jeong, and "Nameunjeong," starring Yum Jung-ah and Park Eun-bin and currently in production, are also slated for release next year.

The direction for future projects has not yet been established. Oh said, "Just as we've gained an edge in drama, we also hope to find our strengths in film by engaging in the business," adding, "Rather than building a portfolio that covers every genre like major investment and distribution companies, we plan to focus on films with distinctive concepts."

AI Production Internalization

One pillar of KT Studio Genie's production method is artificial intelligence (AI) production. Oh predicted that the technical aspect would soon become standardized industry-wide. He pointed to three elements that distinguish a competitive edge: project execution experience, a prompting archive (a collection of accumulated prompt examples), and asset archiving of the outputs produced as a result.

All three are assets that require time to accumulate internally. In terms of management convenience alone, outsourcing may seem advantageous. Since there is no time to market constraint, the final product may also be delayed. However, to reinforce internal capabilities, it is essential to build these three types of assets in-house.

How does this play out in real work? Oh cited the war scenes in the drama "Shinbyeong" as an example. "Initially, it was not a project designed as an AI hybrid production," he explained. "We filmed in the traditional way, but utilized AI-generated cuts during post-production." He added, "We pursue efficient production methods regardless of methodology, and it is now safe to say that AI is used throughout the drama production process."

'Musin Guihwanlog' Production Site / KT Studio Genie.

There are also productions that have utilized AI even more boldly. The short-form drama "Musin Guihwanlog," soon to be released, is one such case. Oh mentioned three benefits: first, green studio shooting eliminates the need for location moves; second, using AI to regenerate actors' performances reduces the need to repeat unsatisfactory takes; third, an AI supervisor allows real-time preview by synthesizing actual performances with pre-generated images, saving significant time.

However, Oh remained cautious about cost reduction. "It depends on the situation," he said, "but as far as short-form content is concerned, the savings on shooting days and travel expenses are clear." He also noted that "the overall extent of cost reduction depends on how much AI is used, which is determined by the planning, story, and script."

Short-Form Market: Not a Rosy Outlook

Unlike the steady progress in film and AI production, short-form is the area Oh regards with the greatest caution. This is due to the decrease in production activity driven by Chinese platforms, which peaked from the second half of 2024 to last year. The majority of projects have switched to AI production. For script-based live-action drama producers like KT Studio Genie, this presents a challenging business environment. Even major platforms have not seen great success in terms of profits or scale, which raises further concerns.

With the market as a whole contracting, KT Studio Genie is revising its business hypotheses. The company is recalculating how much to invest in production, how to distribute content, and how much can be recouped. Oh assessed, "At this point, I cannot say the outlook is rosy."

Jae Oh, Head of New Business Division at KT Studio Genie.

Nonetheless, he believes there are opportunities in the mid-to-long term. Not only social platforms like TikTok and Meta, but also established OTT providers such as Netflix and Disney+ have shown interest in the short-form content business. Notably, Disney+ recently launched a short-form video feature (Verts) within its app in the United States. Oh said, "Depending on how OTT and social platforms utilize short-form dramas, studios like ours could find new opportunities."

In the long run, he expects mobile-based short-form scripted content to continue growing. "As the purchasing power of generations who have used mobile devices since birth increases, content and formats tailored to them will continue to evolve," he forecast.

KT Studio Genie is responding by pursuing two strategies. First, the company is producing short-form content as complete works; second, it is expanding its distribution network alongside production. Oh explained, "Since the end of 2024, we have established a network of around 40 buyers. Even if no single outlet brings in a large sum, if we spread our content across many channels, the total scale becomes significant." The strategy is to rely on a dense network rather than looking for a big hit.

This content was produced with the assistance of AI translation services.