97 oasis (lee c-d, 2002)

The term "magical realism" is so ill-defined and abused that I feel safe to use it however I like, and you should, too. Here, it indicates Lee Chang-dong's mixture of a "naturalistic" environment (urban dwellings and businesses, what appears to be natural light and location shooting), and its characters projecting onto the environment their fantastical ideas and dreams. Butterflies.