Terence Chang is teaming upwith Korean production company Blue Storm and sales agent Cineclick Asia toproduce $20m Korean war epic Christmas Cargo.

Chang, who is John Woo'spartner in Lion Rock Productions, will executive produce the project. BlueStorm president Bae Yong-kook will produce in association with Cineclick Asiamanaging director Suh Young-joo.

Based on a true story, thefilm will follow events on Christmas Eve in 1950 when the US army was trappedin a northern city on the Korean peninsula along with 100,000 Korean refugees.

'I'm interested inparticipating in this project because I fell in love with the story, especiallyafter watching the documentary. I also want to work with talented Koreandirectors,' said Chang.

Blue Storm has been developingthe project for three years and brought in Cineclick as co-producer to raiseinternational finance and help find US actors and crew.

Talks are underway withpotential US and Japanese investors and an unnamed Korean director is attachedto the project. Full details, including US and Korean cast, will be announcedin spring 2006. Principal photography is scheduled to start in autumn 2006.

Blue Storm previouslyproduced April Snow, directed byHur Jin-ho and starring pan-Asian superstar Bae Yong-joon, which recently set anew box office record for a Korean film in Japan.

Chang is also puttingtogether Woo's China-set blockbuster The Battle Of Red Cliff and Thai actioner Detour, directed by Alexi Tan.