China’s Huayi Brothers has recently signed an exclusive three-year co-production deal with South Korea’s investment and distribution firm Showbox/Mediaplex. The joint film venture will release at least six movie titles.
The inking of the agreement on Wednesday, March 25, marks South Korea's initiative to enter the lucrative Chinese film market. Since 2005, this market has seen an average annual growth rate of 30 percent.
"I am confident that this partnership will allow Showbox to positively establish itself as a brand in China, and furthermore, ensure future profits," Showbox CEO Yoo Jeong-hun remarked.
This partnership will also aid in the establishment of Showbox China, a local branch of the South Korean firm. In Oct. 2014, Showbox announced that it would be launching a branch in China this year. However, the date of opening is yet to be revealed.
For this exclusive deal, Showbox is tasked to select the projects, while its local unit in China is assigned to adapt it to the local standards and tastes. Both Showbox and Huayi Brothers will make investment decisions based on the final script.
The movies that will be produced until 2018 will also be in partnership with major film studios in the country. Huayi Brothers will also take charge in the marketing and film distribution in China.
Showbox has high hopes that this partnership will help them gain a larger share in Asian markets, citing Huayi Brothers's wide production network and production capacity. Huayi Brothers has produced four out of the top 10 highest grossing films of all time in China.
Meanwhile, Huayi Brothers head Wang Zhonglei shared how the Chinese firm appreciates this joint endeavor.
"It is truly meaningful to have this opportunity to produce and distribute Korean films, which are globally competitive, in China," Wang said.
Back in 2013, the two companies have already teamed up for the ambitious sports drama "Mr. Go 3D," which pulled out a total of $16.73 million in China and $8.46 million in South Korea.