The Korean Film Council (KOFIC) has announced a plan to revitalise the ailing local film industry, starting with the creation of film funds worth a combined $55.5m - including a $3.4m fund for international co-productions and another of the same amount for 'diversity films' (ie arthouse films).

After coming under fire in recent weeks for not carrying out KOFIC's 2008 mandate, while continually criticising past administrations in public forums, KOFIC chairman Kang Han-sup in his fifth month in office brought out the new plan at an industry conference earlier today.

He outlined a $41.6m fund based on public money that aims to 'hedge risks by diversifying investment methods' and 'heighten transparency in production management and accounting'; as well as the two $3.4m funds for international co-productions and diversity films.

Noting that the local film industry is dependent upon theatrical profits for a lop-sided 80% of revenues, KOFIC also proposed a $1.1m plan to 'create a 3D (Download, DVD, Documentary) Market' by setting up an online distribution network, with a VoD service based on films that received production support funds from KOFIC.

It also aims to spend $693,000 on anti-piracy campaigns including legal action against illegal webhards (ie. online file storage and sharing) and services.

As part of the '3D Market' plan, funds receiving KOFIC money will be required to put 5-10% of their investments into documentaries.

It will also encourage broadcasters and filmmakers to work together by providing $104,000 for a loan programme that comes with the condition that broadcasting rights have been sold.

KOFIC also plans to invest $208,000 each in ten films this year to 'mentor representative Korean directors' and support new directors with funds and post-production work; and put $69,300 each into ten films for development.