Korean film exportsincreased by 15% to $67m this year, according to a report from localinvestor/producer IM Pictures, with Japan a major buyer of star-powered Korean fare.

The report states that 80%of sales were concentrated in Asia and estimates that overall investmentprofits were $17.4m, making 2005 the Korean industry's third year in the black.

Major pre-sales went toJapan for tearjerker April Snow at$7.5m, rom-com Cheong Chun Man Hwa at$4.5m, action blockbuster Typhoon at$4m, crime thriller Running Wild at$4m, melodrama Yeonriji Now And Foreverat $3.5m and Park Chan-wook's thriller SympathyFor Lady Vengeance at $3m.

April Snowand weepie A Moment to Remember wererecord-breaking box office hits in Japan for Korean films, raking in over $20m each.

European exports were at asturdy 15.5% while North American accounted for only 3.3% of sales.

Domestic revenues are alsoup 9.3%, a rate similar to US increase, but production budgets and P&A costscontinue to rise at 9% as well. With growing casting fees, wider releases andincreasing digital intermediate costs, the average film spent $3m on productionand over $1.5m on P&A.

The report estimates thatoutside of ancillaries, the average film needs to draw in 1.7 millionadmissions at the local box office to break even, and despite major sales forcertain star vehicles, 76% of films were estimated to be in the red.

Korea's 2005 box office hits to date are WelcomeTo Dongmakgol with more than 8 million admissions, Marrying The Mafia 2 with 5.7 million, Marathon and Sympathy ForLady Vengeance. Korean films hold a 55.1% market share.

Hollywood made a comeback this year with The Island, Mr. & Mrs.Smith, Harry Potter And The Goblet OfFire and War Of The Worlds all inthe top ten.