The move was announced Monday by the president of Korea Park Geun-hye, who also opened an innovation center in Busan, the state-owned Yonhap news agency reported.
Park said that the fund would be used for film industry activities, including investment, distribution and screenings.
Lotte, which is already Korea’s second largest vertically-integrated movie company, is expected to provide half of the fund. Busan Bank will provide KRW16 billion and the Busan city government a further KRW4 billion. Earlier this month Lotte Entertainment struck a long-term deal to handle distribution of Paramount’s studio titles in Korea, the world’s sixth largest theatrical territory.
The company’s film sales unit will attend next week’s Filmart trade show in Hong Kong.
Lotte’s activities also include department stores, hotels and fast food restaurants.