The film has been a smash hit in its home territory, grossing more than $4m in Taipei alone, and has been submitted as Taiwan's official entry to the foreign-language category of the Academy Awards.
The Golden Orchid for best documentary went to Noho Hewa: The Wrongful Occupation Of Hawai'I directed by Anne Keala Kelly. (Full winners list below).
Jurors, who included producer Roy Lee (The Ring), actor Cliff Curtis (Whale Rider), and executive director of the Vilcek Foundation, Rick Kinsel, announced the feature and documentary winners were chosen for 'best expressing artistic and technical excellence and for promoting cross-cultural understanding.'
HIFF opened Oct 9 with Kim Yoo-jin's period piece The Divine Weapon in its international premiere. The festival runs until Oct 19 with additional repeat screenings and a closing ceremony on Oct 18.
The fest is screening 150 films from over 36 countries, with Gala Presentations including Tokyo!, the city-specific omnibus by Michel Gondry, Leos Carax and Bong Joon-ho; and Anthony Wall's documentary Bob Marley: Exodus 77.
'HIFF has been awarded as one of the 10 most significant festivals with an Asian focus, and when it comes to audiences, we have a unique mix in all the world,' said festival director Chuck Boller. 'We have many people of Asian descent in the area, but also enthusiasts who travel here from around the world each year to catch the gathering of films. It's almost a kind of alternative tourism.'
This year the big attraction for travelling fans is Korean star Jung Woo-sung. He will be awarded at the closing for Achievement In Acting for films such as Musa - The Warrior, A Moment To Remember, and HIFF's closing film - The Good, The Bad, The Weird.
The film's director Kim Jee-woon will also receive the festival's Maverick Award.
The Academy of Motion Picture Arts and Sciences (AMPAS) is sponsoring four seminars at HIFF, including 'Cyber-Samurai Redux, how the internet, new media and heavy metal saved one of the most revered film studios in Japan'.
AMPAS executive director Bruce Davis said: 'We wanted to support this festival not only because of the Asian and Pacific focus, but also because of the spotlight it puts on independent and small films.'
Officially the Louis Vuitton Hawaii International Film Festival (LVHIFF), named for its main sponsor, the fest is also 'Going Green' this year, with online programmes and fewer printed ones.
Full List of Winners:
Best Narrative Feature - Cape No. 7 (Taiwan) dir: Wei Te-Sheng
Best Documentary Feature - Noho Hewa: The Wrongful Occupation Of Hawai'I (US) dir: Anne Keala Kelly
NETPAC Award: - Brutus - The Adventure (Philippines) dir: Tara Illenberger
NETPAC Honorable Mention - The Little Heart (Vietnam) dir: Thanh Van Nguyen
Film In Hawaii Award, presented by the State of Hawaii - Joan Lander and Puhipau, for their significant contributions to promoting the local film industry
Best Short Film - Coffee And Allah (New Zealand) dir: Sima Urale
Honorable Mention for Short Film - Texas Girl (US) Hyung Hyup Kim
Video-on-Demand Viewers Choice Award (Oceanic Time Warner Cable) - The Hollow (US) dir: Dana Ledoux Miller