Korea's Nabi Pictures is establishing a branch in China, Beijing Nabi Pictures, to produce aChinese-language film.

Speaking to reporters at China's Hengdian World Studios, Nabi Pictures co-CEOs JoMin-hwan and Kim Sung-soo claim this marks the first time that a Korean filmcompany has set up a local corporation in China to produce a Chinese film. The company is currentlyshooting Korean-language swordplay fantasy Restlessat Hengdian, which is being sold internationally by CJ Entertainment.

Beijing Nabi Pictures is tobe headed by former Beijing Film Studio deputy managing director Zhang Xiawhose producer credits include BeijingBicycle and The Emperor And TheAssassin.

Producer of the popular 2003comedy Please Teach Me English, NabiPictures plans to produce GyeolhonJinhwaron - a working title that literally translates as Marriage Evolution Theory - in China. The film, to be directed by a promising new Chinesehelmer, is about a Korean man and a Chinese woman who fall in love at firstsight but find culture clashes in their marriage.

China's stringent import quotas would not be applicable to the film as itwould be classed as a domestic production.

With Korean companies suchas MK Pictures and CJ CGV entering Chinese exhibition, Nabi Pictures' move isseen as a localisation strategy aimed at facilitating large-scale distributionof films.