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A US$43 million fund of primarily internationally-raised capital for investment in Korean film is set to launch this July.  German-based services and technology company Contraco will contribute $26.9 million in foreign-raised capital while Korean advertising firm Wise Interactive has raised $16.1 in domestic capital. 

This is welcome news for production companies seeking financing, as investment from local financiers has been scaled back for 2007 following a production glut in 2006 with as many as 108 features produced, hurting per-feature profits. 

Wise Interactive, according to Variety, is planning to expand into the film industry directly by establishing a film investment, production and distribution firm. The new venture has already acquired rights to several feature projects and plans to begin production on one of them in May. It will also continue to invest in projects from other film companies.

Foreign investors are keeping a close eye on the still-growing Korean film market.  The recent expansion of multiplexes has made movie-going a typical social activity in the densely populated country.  According to Variety, "Based on movie-going frequency, South Korea is fast becoming one of the world's best markets. Its citizens go to the movies nearly three times a year -- twice as often as the Japanese and more than the British, Germans or Italians."

 Nigel D’Sa (KOFIC)