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Internet Movie Fund

Posted May. 06, 2001 07:42,   


Does Netizen Fund guarantee Big Money?

Recently movie fund-raising from the netizen has got attraction. The major fund of this kind is `netizen fund` that the owners share the box-office profit after having invested in a certain movie.

`Indian Summer` which offered bonds for public subscription early last month, sold out at first in 3 minutes (60 million won) and at the second in 41 seconds (60 million won). `Friends` collected 100 million won in one minute after it started offering public subscriptions.

However, the income of the movie-fund is always fluctuating. Not less funds was reduced to the beginning due to their terrible box-office profit.

Park Mi-ah, a team director of Global Cultural Exchange, commented, `movie industry is a high risky business. So, it is very dangerous to invest in a certain site simply because the site is publicly well known.` And she recommended to invest little by little with the mind of movie-lovers.

`The Foul King` of Intz.com (film.intz.com) recorded high 97 percent of income rate, followed by 40 percent of `Sympathy (Dong-gam)` and 30 percent of `Die or Bad.` `Beautiful Bast` is also expected to exceed 50 percent of profits. The most currently circulating internet-funds are evaluated over their offering prices. `Friends` is currently transacted by over 25,500 won, compared to its offering price 10,000, thanks to the surprising box-office record. `Jakarta` is selling by 12,500 (public offering price 10,000). `The Grotesque Woman` of InterPark Goodsdaq (showbiz.goodsdaq.co.kr), which will be open in this summer, is already transacted by the price (5700 won) higher than its public offering (5,000).

The average amount of individual investment is growing as a rolling snow ball according as the netizen-fund has got more attraction from people. It has increased up to 100 – 500 thousand won compared to the last year’s 10-50 thousand won. The average investment for `Indian Summer` is approaching one million won and three `big-hands` bet more than 10 million won on `Paaran.`

However, there are shadows of it. `Kilimanjaro` of InterPark Goodsdaq had suffered 54 percent loss. `Tears` also lost 40 percent of its investment. `Chunsamong` of HansGlobal (www.hanboom.com), which had been expected a big success and collected 336 million won by public subscription, is now anticipating a considerable loss due to its failure in the box-offices. .

Lee Kuk-myung lkmhan@donga.com