According to the LOI, Fox would invest in Showbox films, which would then be distributed through Fox's network outside of Korea, including the US. Fox would not be responsible for distribution of Showbox films it did not invest in.
'This is just the preliminary stage to signing a deal, and we are still discussing details such as how many films would receive investment and when,' said Showbox spokesperson Geun-ha Choi.
Showbox states that the deal came about independent of and unrelated to the upcoming sci-fi monster flick D-War, the company's first English-language investment.
The Fox-Showbox deal would be the first time a major US studio chose to invest directly in multiple Korean films.
Previously, New Line Entertainment invested in Taewon Entertainment's martial arts fantasy Shadowless Sword, and there have been cases of foreign investment in local companies.
Conversely, rival investor/distributor CJ Entertainment has this year started distributing Paramount films locally in Korea, in accordance with a deal that does not have anything to do with local films.