China’s Wanda Group and Korea’s second biggest city, Busan, are reportedly setting up a $90m (KRW100bn) fund to finance China-Korea co-productions.

Korean media reported that the agreement was signed in Beijing this week by Wanda chairman Wang Jianlin and Busan mayor Suh Byung-soo. However, Wanda Group declined to comment. Suh arrived in Beijing on Monday for a week-long trade mission.

The tie-up follows the recent signing of the China-Korea co-production treaty, although the two countries have already been collaborating on joint film projects for several years.

“The agreement is expected to serve as a bridgehead for our film industry to make inroads into the Chinese market,” said a statement from the city of Busan.

Wanda Group is the parent company of Wanda Cinemas and producer-distributor Wanda Media. The Dalian-based company is also setting up the Qingdao International Film Festival, and film and tourism park, Qingdao Oriental Movie Metropolis.

The city of Busan hosts the annual Busan International Film Festival, Asia’s biggest film festival, and promotes the city as a hub of Asian cinema. Both the Korean Film Council (KOFIC) and the proactive Busan Film Commission are based in Busan.