This movie had many obvious elements similar with Audition. It seems like Sion was definitely inspired by that movie.
But I think this one had a better ending (I didn't put together the scarification club scene with the rest of the movie)so it was a good shock.
Audition was good but incredibly slow. For me this was an all around better put together film.
Other good Asian Horrors:
Ichi the Killer
Three... Extremes
I Saw the Devil
The Chaser
Sympathy for Lady Vengeance
Sympathy for Mr. Vengeance
Oldboy
A Tale of Two Sisters
Battle Royale
Suicide Club
Cold Fish
Thirst
Let me know if you have others.