The burgeoning animation industry of South Korea has one more notch in its belt today. Daily Variety is reporting that South Korea’s Sieundesign has signed a potentially $10 million deal with U.K.-based licensing group Copyright Promotions.

Among other things, the two companies are going to collaborate in the production of the CG-animated feature Merry Christmas Tete. The film is to be directed by Jang Uk-sang.

The project is a family film, in which Santa’s helpers have only one Christmas present to deliver to an entire village. With a budget of $10 million the film is scheduled for a December 2008 release.

Copyright Promotions will raise half of the film’s budget, negotiate a U.S. distribution deal and engage in co-marketing activities. Copyright will be co-owned by the two companies, with Sieundesign retaining distribution rights outside of the U.S.