Busan Metropolitan City and Lotte Entertainment will launch on Thursday a fund investing in “all aspects of the film business” to further develop a sustainable movie ecosystem in the southeastern port city, according to Busan City on Wednesday.
Lotte injected 10 billion won ($8 million) into the “Busan-Lotte Creative Film Fund,” with Busan, Busan Bank and Timewise Investment providing 6 billion won, 4 billion won and 1 billion won, respectively.
Timewise will be the fund’s asset manager, while Lotte and Busan will assume the role of the fund’s limited partners.
“The fund will provide liquidity in all aspects of filmmaking from preproduction and production to postproduction, sales and distribution in order to create a sustainable ecosystem in the movie business,” said a Busan City official.
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A film crew member shoots at a movie studio complex in Busan. (Busan City) |
“The parties have been involved in talks to create this fund since February 2015,” the official added, noting that this fund has nothing to do with the operations of the Busan International Film Festival.
Observers speculated that the launch of the fund comes as Busan is trying to fend off criticism over attempting to exert control over BIFF. Last month, Busan Mayor Suh Byung-soo resigned from the BIFF Organizing Committee chairman post, opening up the position to people from the private sector.
Lotte Entertainment said the fund will focus on investing in people and the storytellers who speak for them so they can develop and create quality motion pictures.
“When we say ‘ecosystem,’ we mean providing the necessary finances for the creators to produce and distribute quality movies. The investment will also include investment in education -- fostering the next generation of filmmakers at the Busan Center for Creative Economy & Innovation,” a Lotte Entertainment spokesperson said.
“This falls in line with further making Busan a ‘filmmaking mecca.’ And we will seek to expand the operation of the fund beyond Busan in the future,” he added.
Lotte backs the Busan Center for Creative Economy & Innovation in the field of movie businesses ranging from production to distribution.
The innovative center will work with Timewise Investment to identify potential movie projects for investments, the Lotte Entertainment spokesperson added.
Timewise, formerly CJ Venture Investment, a venture capital arm of CJ E&M, which will function like a general partner in private equity, is known for having invested in blockbusters such as “The Thieves,” “Ode to My Father” and “The Admiral: Roaring Currents.” Its most recent investments include director Lee Joon-ik’s low-budget film “Dong-ju.”
Film projects scheduled to shoot in Busan locations that also use the city’s movie studio complex will be an ideal investment for the 21 billion won fund, Timewise said.
“Every investment decision will be made with Lotte and Busan, which will screen and propose ideal projects for investments,” said an official of Timewise.
“Busan is already a film mecca with a studio complex and variety of other agencies such as the Korean Film Council and Korea Media Rating Board.”
The fund will invest 10 billion won in film projects, especially low-budget or independent movies shot in Busan, and the remainder in commercial or big-budget films, according to Busan and Lotte Entertainment.
Not all of the movies’ sequences should be filmed in the city, they said, noting that about 20 percent of sequences expected to be shot in Busan for a film would be considered.
Furthermore, films that cost less than 500 million won -- independent movies -- can receive investment of up to 50 percent of the total budget, according to the city.
“The purpose of this fund is like any other concept, supporting innovative start-ups and ecosystems -- financially supporting those with ideas and helping them realize them in the market,” said the Busan official.
By Park Hyong-ki (
hkp@heraldcorp.com)
