China and South Korea have signed a tentative film co-production agreement and a formal co-production treaty is expected to be signed during 2013. If the treaty goes through, co-production projects will enjoy free market access regardless of the Chinese foreign film quota and also enjoy tax benefits from both countries. South Korea's Ministry of Culture, Sports and Tourism (MCST) expects the co-production treaty to create growth not only in film co-productions but also in film VFX and employment of film crews. The Korean Film Council (KOFIC) also opened a 'Korean Film Business Centre' in Beijing in 2012 to support co-production and backed other collaboration with the Chinese film industry.
In 2012, three Korean films (including co-productions) reached Chinese cinemas with a market share of around 0.8 per cent. 19 Chinese titles were released in Korea with a market share of 0.5 per cent, up from 0.3 per cent in 2011, but this dropped from 1.5 per cent in 2010 and 2.1 per cent in 2009. The co-production agreement is expected to boost the market share of both in the future. To date, China has signed co-production treaties with Canada, Italy, Australia, France, New Zealand, Belgium and Singapore and is also in talks with Spain and Brazil.