The Good, The Bad, and the Weird (좋은 놈, 나쁜 놈, 이상한 놈) is a fantastic slapstick take on the classic western that has a lot of fun with the setting.
Trollhunter (Trolljegeren) is a great horror-mockumentary done in a found footage style.
Basically anything by Kurosawa.
You’re right on your interpretation of the word and to disagree with the poster. They’re just some lib psuedophrenologist.