The film tells the story of two families who go for a vacation on a deserted island that creates murderous doppelgangers of anyone who sets foot on it.
Chen previously directed love triangle drama Eternal Summer, which screened at the Pusan, Tokyo and Karlovy Vary film festivals, and award-winning horror film The Heirloom which was also in Pusan.
Korea's Teddy Hoon-tack Jung (Windstruck), who is head of iHQ and i Love Cinema, and Peter Kimcho (Happy End), president of Generation Blue Films, will executive produce.
iHQ is a production, media, sales and leading talent management company that has an affiliated film production and distribution company i Love Cinema - which is credited as one of the production houses on the film.
The other two production companies for Island are Generation Blue, mostly known for independent arthouse films such as Jealousy Is My Middle Name and No Regret, and Taiwan's Three Dots Entertainment, a production and distribution company reputed for powering fresh new talent into Taiwan cinema with films such as the hit romantic comedy Formula 17 and Chen's Eternal Summer.
The Island script is written by Ko Jeong-Un (Bystanders), with producers Chang-gil Shin, Jude Jung and Michelle Yeh attached. Currently in development, the HD film is budgeted at $2m.
Island will shoot in Taiwan from January to March 2008, with an estimated release date of June 2008.
iHQ is also producing Let's Fall In Love, an $800,000 co-production project with Beijing Polybona Film in China, October Pictures in Hong Kong, and Nabi Pictures in Korea.