South Korea and China are setting up a $200 million joint entertainment fund to finance their co-production of movies, television shows and music projects.

The bilateral agreement, signed in Seoul Thursday by the heads of South Korea's Culture Ministry and China's media regulatory body, would pave the way for the entry of more Korean-element films into China minus the worries over entertainment import quotas.

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China currently has a cap of 34 foreign films per year, but under the new agreement, any film projects co-produced by the two countries will simply be considered as local films.

Both countries are pouring in $40 million each into the joint fund, while $12 million will be coming from the private sector.

Recently, South Korea and China launched people-to-people exchange programs to deepen cultural ties between them.

The growing population of Chinese tourists in Korea was reported to have been influenced by the entertainment industry.

The Korean Cinema Today newletter once reported that Chinese investors interested in the Korean film industry are starting to increase.

iQIYI, a Chinese online video platform, has purchased the right to the popular Korean drama "My Love From The Star" and to 40 other Korean Films.

Jack Ma, chairman of the e-commerce giant Alibaba, has also expressed interest in the joint entertainment fund.

"I'm very much interested in introducing Korea's cultural content to China," Ma said in a meeting with South Korea's Deputy Prime Minister Choi Kyung-hwan.

"Alibaba is discussing with various companies to invest in TV dramas, movies and entertainment businesses," he added.

Tagskorean drama, korean films, my love from the star