Incentive for foreign investments in free economic zone
| Type of tax | Reduction details | Reduction items | |
|---|---|---|---|
| National tax | Tariff | Exemption for 5 years from import report date | Imported capital goods |
| Local tax | Acquisition tax | Full waiver for up to 15 years |
|
| Property tax | Full waiver for up to 15 years ※ Dong-gu and Suseong-gu in Daegu, Dalseong-gun, Yeongcheon-si, Gyeongsangbuk-do |
||
| Full waiver for 10 years, 50% exemption for 5 years ※ Gyeongsan-si and Pohang-si, Gyeongsangbuk-do |
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Financial supports
-
Cash supports
-
Support over 5% of FDI
Costs of construction for factories and research facilities, hiring costs, training costs -
Support decision by evaluation among foreign companies with a foreign investment ratio over 30%
-
Infrastructures
-
50% supports from national government expenditures such as roads, railways, airports, ports, sewerage, waist disposal facilities, and so on
-
Full support in case of approval by the committee of free economic zone
-
Foreign education and research institutions
-
Preparation costs for the establishment of foreign education and research institutions, initial operating expenses, construction costs, and so on
-
Conditions of evaluation parameter qualifications including reputation, contribution to the national development, and so on
-
Rental costs
-
Rental for the state-owned land at 10/1000 level of the land value for 50 years
-
After that, renewal within the range of 50 years
Miscellaneous
-
Deregulation on labors
-
Application exclusion of the priority employment obligations for the disabled, those of national merit, the seniors, and so on
Deregulation on the terms and subjects for dispatched workers, allowance of unpaid leaves, and so on
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Free to trade FOREX
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Direct payment between the parties for current transaction below $10,000
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Application exclusion of Metropolitan Area Readjustment Planning Act
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Exclusion of restrictions for the activities in overcrowding suppression areas and growth control areas in the Metropolitan Area Readjustment Planning Act
Exclusion of restrictions for overcrowding cost, population-densely facilities, and large-scale developmental projects