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Untitled Document
Overview of the Tourism Industry

Overview

Tourism is one of the most important schemes to meeting the pursued desires of mankind in the 21st century, and tourism along with knowledge & information technology and environment, is emerging as a major industry of the 21st century.

Revenues from tourism, yielding of job opportunities, invigoration of the regional economy and so
on, are being considered as significant objectives in policy making.

Tourism is a greatly welcomed area within the leisurespending market. Failure to quench the desires of the customers may consequently lead tourism to becoming assimilated into other competing areas, or may direct their customers to turn to travelling abroad instead.

A dramatic change is coming about in the population structure due to growth in economy and increase in the leisure time.

Tourist facilities and services must be expanded to be able to accommodate the increase of the senior population.
A new change is anticipated in the digitally relevant tourism market by the versatile and colorful expression of the Ngeneration spawned by the Information age.

Efforts to preserve the environment is directly affecting the tourism industry.

There ought to be an increase in environment preserving activities centered around the government or civil groups.
More interest on natural or ecological tourism and persistent development of tourism products is demanded.

Tourism Policy and Status of Implementation

Development of projects for promoting profitability and attracting foreign capital in the form of direct investment

Tourist Accommodation Business Area

Expansion and enlargement of tourist hotels and attracting investments for mid-low priced hotel franchises.
Establishment of family hotels, recreational condominiums, Korean traditional houses, old houses as tourist accommodation facilities.

Sport Leisure Complex and Recreational Business Area

Expansion of large theme parks and leisure facilities and development of small-medium sized theme park facilities
Construction of recreational resorts with spectacular natural scenery and transportation (golf course, sports & leisure facilities)

Convention Industry Area

Support for establishment of local convention centers
Nurturing of Convention professionals
Support for hosting and attracting large international conference and events

Other Facility Area

Development of complex, versatile tourist attraction such as family, game-leisure, shopping tourism facilities.
Development of multimedia facilities for new generation tourists of the 21st Century.

Reinforcement of various incentive system for tourism industry

Deregulation (overseas remittance, tax exemption, liberalization of investment)
Land purchasing related incentives and support for investment area development
Simplification of administrative services

Improvement of investment environment for inducing foreign investment in the tourism industry

Connecting regions and expanding of domestic, international transportation network
Persistent improvement in living conditions and environment for attracting investment within investment area.

Execution of promotional activities for attracting more foreign tourists and induce foreign investments

Improve international promotional efforts (establishment of pan-governmental system of support for promotion, online promotion and marketing reinforcement)
Reinforcement of tour-guide system (language communication, establishment of high-tech guiding system, expansion of tourism guide centers)
Nurturing of professional workers in tourism at the international level (establishment of professionals education center)
Persistent attraction of foreign tourists (China, Japan, Southeast Asia and Americas etc.)
Development and promotion of tourist culture products (genuine culture product, regionally specialized product)

Liberalization of Foreign Investment

Guarantee of profit repatriation

Dividends and proceeds from stocks earned by foreign Investors
Principal interest and commission payed by long-term loan contract
Cost payed by technology introduction contract

Equal treatment with Korean nationals

Foreign Investor and foreign investment enterprise, unless otherwise stated under the law as a
specified regulation, will be treated equally upon operation of business as the nationals or the
domestic enterprise.

Upon matters regarding tax exemption or reserved procurements for selling of properties, there will be more incentives for foreigners than tthose for the nationals.

Liberalization of foreign investment

Unless it opposes the law, in principle, it is stipulated that there are no regulations in foreign
investment

Foreign investment target business

Partially opened business :
27 Units. (Foreign Investments are allowed upon meeting the permission criteria)
Closed business : 2 Units. (radio broadcasting business, television broadcasting business)

According to the tourism promotion act. there are no regulations for tourism business

Land acquisition by a foreigner

When a foreigner acquires domestic land, acquisition of the land is permitted merely by reporting, regardless of the purpose of it use. However, exceptions apply to land within military facility protection zone, cultural assets protection zone, ecological preservation area, and land acquisition of certain island area required for military purposes need prior permission.