20th Century Fox, the media giant behind hit movies like "Avatar" and "X-Men," has become the first major U.S. film studio to officially enter the Korean film market

Starting this year, Fox said it will directly invest US$4 to 5 million into five Korean film projects it plans to distribute worldwide. Fox's international unit said the American studio wants to be the distributor and primary investor of the films to be produced in Korea.

Observers said the move highlights Korea's rising profile in the global film market. But critics worry that the presence of Fox's Hollywood-style production culture could infringe on local creative autonomy.