Hanaro Telecom is investing $2m in the fund, alongside Hanhwa Venture Capital Corp and film importer Daisy Entertainment, to buy up content for its IPTV service HanaTV.
HanaTV currently has exclusive rights to films such as Open City, Mist and hit thriller The Chaser.
Hanaro rival Korea Telecom (KT) recently announced a $41m content fund with Japanese IT investment firm Softbank to invest in content for KT's IPTV service MegaTV.
Hanaro's HanaTV leads the IPTV market with 900,000 subscribers and more than 80,000 films and dramas, while MegaTV has 550,000 subscribers and more than 76,000 films and dramas. Both telecoms companies are aiming for an increase to 1.5 million subscribers within the year.
This follows in the steps of previously launched funds for Hanaro, which come to a total of $7.6m.
HanaTV is affiliated with SK Telecom, the majority holder in Hanaro Telecom which also owns production and talent management firm iHQ. SK also bought into mid-level production companies Chungeorahm and iFilm through iHQ.
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