ACFM Chief Ellen YD Kim Talks AI Development; Korean Recovery; Market Spotlights On Thailand & Japan

The Asian Contents & Film Market (ACFM), integral to the Busan International Film Festival, is marking notable progress in its second year of new program initiatives launched in 2024. With a focus on emerging technologies and regional collaboration, ACFM is evolving into a multifaceted platform addressing the contemporary challenges and opportunities within Asian film and content industries.

Central to this evolution is InnoAsia, a program designed to spotlight advancements in AI, virtual production, and immersive media such as VR and AR. InnoAsia’s 2024 debut showcased several AI-driven projects that have since successfully secured financing and international exposure. Among these, Mateo AI Studio, after participating in the AI works-in-progress showcase, secured $1.5 million in pre-Series A funding and forged a promotional partnership with China’s Kling AI, a subsidiary of Kuaishou. Their fully AI-generated feature, Raphael, is preparing for release, illustrating the tangible impact of the platform on pioneering content creation.

In addition to Mateo AI, the AIKNOW Studio team, comprising producer Ham Seul-gi and director Seol Woo-in, transitioned from an AI short project to completing the feature Steelay. This film is set for theatrical release in South Korea shortly after its preview at this year’s market. Another example, Inshorts, an AI upscaling company, expanded from InnoAsia’s startup segment to representing Korea at prominent European events like the European Film Market (EFM) and Cannes Next, securing contracts across multiple Asian territories.

This year’s ACFM exhibits a steady expansion with 339 participating entities from 32 countries, a 17% increase over 2024. The growth is particularly pronounced in Southeast Asia, with Thailand—the market’s inaugural Country of Honor—boosting its presence from 17 to 28 exhibitors. Japan, serving as the Focus Country within the Producers Hub, has emerged as the largest international contingent, featuring 46 exhibitors. European representation has also grown, highlighted by the UK’s increase from a single exhibitor to seven, including notable companies like Protagonist Pictures and Cornerstone Films.

ACFM’s broader program slate continues to flourish, featuring longstanding initiatives such as the Asian Project Market (APM), Busan Story Market, and the Asian Cinema Fund. New components like the Impact Asia Impact Day, focusing on documentary research in Korea, Japan, and Taiwan, and 'The A' summit covering 15 Asian territories, emphasize the market’s commitment to both content diversity and investor engagement. The Investor Summit, a recent addition, aims to bridge the persistent gap between available financing and viable projects in the region.

Thailand’s designation as Country of Honor reflects its strategic positioning as both a lucrative international production hub and a growing content creator. The nation's robust incentives include up to 30% cash rebates for foreign productions, which attracted over 540 foreign projects in 2025. Thai content’s penetration into global platforms like Netflix’s Top 10 underscores its rising influence. The country’s participation in Busan spans two decades, further cementing its regional ties and industry footprint.

Japan's role as the Producers Hub Focus Country highlights its established reputation as a leader in co-productions, independent cinema, and arthouse films. Recent policy shifts and enhanced government support, exemplified by the involvement of Japan’s Agency for Cultural Affairs, are driving expanded international collaborations, including projects with Korea, Canada, Indonesia, and France. This engagement aligns with Japan’s intent to strengthen its export of cultural content and co-production capabilities.

Turning to South Korea, the domestic film market is experiencing a notable recovery following pandemic disruptions. The first half of 2025 saw box office revenues rise by 42% to approximately $431 million (KRW 579 billion) and admissions increase by 34% to over 57 million. Korean films captured 64% of the market share, with The King’s Warden achieving record-breaking revenue. Importantly, this rebound spans multiple genres and targets younger demographics, indicating shifting audience dynamics and renewed interest in theatrical releases.

However, industry challenges persist. Despite the box office surge, the number of Korean film releases declined by 22%, and average returns on commercial films remain negative. Market concentration is evident, with a few blockbusters and distributors dominating revenue. Compounding these issues, a major cinema chain filed for corporate rehabilitation in mid-2025. These factors collectively suggest that while demand and IP strength are confirmed, the structural stability of Korea’s film industry requires further development.

In response, the Korean government has significantly increased its support for film production and innovation. The Mid-Budget Film Production Support Program has expanded funding fourfold within a year, now backing 32 films with a combined budget exceeding $34 million (KRW 45.8 billion). Development funding and contributions to film investment funds have also risen sharply. Notably, new initiatives encourage international co-productions, exemplified by projects like Bound, a Korea-Australia collaboration, and a feature by Japanese filmmaker Koji Fukada, supported through ACFM’s Asian Cinema Fund.

Technology and AI have gained prominence in government policy, with tripled budgets and the introduction of the AI Film Production Support Program. The 2027 budget proposal anticipates a further 30% increase in film funding to $128.6 million (KRW 172.6 billion), including expanded support for international co-productions and foreign productions shooting in Korea. Ongoing industry debates focus on theatrical-to-online release windows and integrating streaming platforms into regulatory frameworks to contribute to film financing.

Despite these efforts, industry insiders note a persistent disconnect between available funding and investable projects, underscoring the need for platforms like ACFM’s Investor Summit to facilitate greater alignment. As ACFM convenes in October 2025 at BEXCO during the Busan International Film Festival, it stands as a pivotal event fostering collaboration, innovation, and market expansion amid Asia’s rapidly evolving audiovisual landscape.