Korea's CJ Entertainment and state-owned China Film Group Corp signed a Memorandum of Understanding (MoU) at the Shanghai Film Festival today to become strategic partners on film co-productions.

According to CJ Entertainment president Kim Joo-sung, the partnership involves the production of both Chinese and Korean-language films to be set in both Korea and China.

So far, two unnamed projects have been identified for the partnership. One is at the pre-production stage and the other in development. Kim said at least one of the two will start shooting in the latter half of the year.

Kim said the partnership between CJ and China Film will not be just confined to sharing investment and acting talent, but other areas including directors, scriptwriters and co-developing scripts. It will also involve re-makes of existing successful Korean or Chinese films.

Since setting up its Beijing subsidiary CJ Century in 2005, CJ's involvement in China also includes film distribution and cinema management. It released Korean martial arts film Shadowless Sword in China in 2006 and will be releasing Shrek The Third in Chinese digital cinemas in August.