Seoul-based distributor Sponge Entertainment has acquired all rights to Japanese studio Nikkatsu's indie hit Megane.

The sale was closed during Pusan 's Asian Film Market by Shinako Matsuda of Nikkatsu's film business division and Sponge international business manager Eugene Song.

A drama set at a remote island inn, Megane reunites director Naoko Ogigami and key cast, plus new addition Ryo Kase (Letters From Iwo Jima), of Ogigami's previous indie hit Kamome Diner ($4.3m). Megane was released on September 22 in Japan is set to surpass Kamome's success in Japan.

Sponge previously picked up the rights to Kamome Diner prior to this year's Cannes market and the film opened this August in Korea. Primarily an arthouse specialist, Sponge is set to release more mainstream Japanese fare with Death Note spin-off L in February as part of the film's pan-Asian release.

Nikkatsu also announced a partnership with Desperado to launch production outfit Django Film Corp. Nikkatsu has invested 80% and Desperado 20% in the venture, with titles still in development.

Nikkatsu's is currently co-distributing with Klockworx this year's PIFF closing film Evangelion 1.0: You Are (Not) Alone, which has remained in the top ten for five weeks and earned over $13m.