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外国人 直接 投資 支援 システム |
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Untitled Document
| Designation
of Foreign Investment Zone |
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A zone which a foreign investor
desires to make investments in tourism, manufacturing business or high technology
based business. |
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It is an area specially
designated to provide various incentives such as tax exemption, rental fee
exemption and lenient administrative regulations for foreign enterprise
that wish to make investment within their desired area. |
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It is an post factum area
that is designated after an agreement has been made regarding the desired
area with a foreign investor. |
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Foreign investment of over
20 million USD that are setting up new facilities to manage the following
business |
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Tourist hotel business and
maritime tourist hotel business defined by the Tourism Promotion Act |
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Comprehensive recreation
resort and comprehensive resort business defined by the Tourism Promotion
Act |
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International conference
facilities defined by the International Convention Industry Promotion Act
(When applying for a Foreign Investment Zone, complete payment of invested
must be made within 5 years of being announced as Foreign Investment Zone) |
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Designated by the mayor
or the governor of the province following a deliberation by the Foreign
Investment Committee. |
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National tax (corporate
tax, income tax) : 100% exempt for the first 5 years, 50% exemption for
2 years thereafter (As of 31. December. 2004, 100% exemption for the first
7 years and 50% exemption for the next 3 years thereafter) |
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Local tax (acquisition tax,
registration tax, property tax and composite land tax) : Exemption for 8~15
years accordingly to the Ordinance |
| Exemption of rental
fee, charges for statutory traffic-related contribution and support incentives |
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100% exempt from rental
fee of the national property within the -Foreign Investment Zone. |
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Exemption from charge for
statutory traffic-related contribution for construction of facilities within
the Foreign Investment Zone. |
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Contents of support concerning
common living facilities such as medical, educational, residential facilities
are decided by the Foreign Investment Committee. |
| Support for Foreign
Investment Zone development |
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Cost for construction and
infrastructures will be supported for Foreign Investment Zone development
business within national industry complex. |
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Upon designation as a Foreign
Investment Zone, infrastructures such as roads, irrigation, sewage disposal
plant facilities, and electricity facilities will be supported. |
| Exclusion of other
laws in the Foreign Investment Zone |
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No approval from the relevant
mayor-county-Ward Office Governor within the Foreign Investment Zone is
required for partitioning of land. |
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A business in a Foreign-Investment
Zone is not subject to the restriction over engagement of big business in
a sector exclusively designated as a small, or medium business, or the mandatory
employment for giving priority to those with a record of distinguished service
to the country. |
| Exemption of selling
and rental fee on national, provincial assets for foreign investors |
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Using, leasing and selling
of central, local government owned land, factories and other national-provincial
assets by foreign investment corporation is allowed under reserved procurement. |
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Period of lease can persist
up to 50 years and can be re-leased. Construction of factories or
facilities on the leased land is permitted under the condition that upon
expiration of the lease
period, they may be donated to central or local government or the land be
recovered to their
original conditions. |
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In cases where complete
payment is considered difficult for selling of the land, due date for
payment may be deferred or may be payed through installed payment. |
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National assets : Payment
may be deferred for up to 1 year, or may be made as an installed payment
for up to 20 years. |
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Provincial assets : Conditions
for deferment of payment or installed payment will be stipulated in accordance
with laws concerning investment. |
| Foreigners who
invest over 500 million USD may gain permission to operate noncitizen exclusive
Casinos |
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Foreigners who invest over
500 million USD on tourist facilities are conditionally permitted to
operate non-citizen exclusive Casino business.
(As of June 2004, this comes in force in Jeju Island under Special Act on
Jeju Free International
City, and revision and notification of pending legislation of Tourism Promotion
Act for other
provinces are being carried out.) |
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Permission criteria |
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According to regulations
on tourism business appointed by president decree, the entire 50 million
USD must be invested within 5 years from the date of approval of the casino
business |
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Casinos may be established
within International Airport or international passenger terminal of the
Metropolitan Area or within annex facilities of Hotels or international
convention facilities within the province or specialized tourist regions. |
| Designation of Foreign Investment Zone |
Concept
A zone which a foreign investor desires to make investments in tourism, manufacturing business or high technology based business.
It is an area specially designated to provide various incentives such as tax exemption, rental fee exemption and lenient administrative regulations for foreign enterprise that wish to make investment within their desired area.
It is an post factum area that is designated after an agreement has been made regarding the desired area with a foreign investor.
Designation Criteria
Foreign investment of over 20 million USD that are setting up new facilities to manage the
following business ;
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Tourist hotel business and maritime tourist hotel business defined by the Tourism Promotion Act |
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Comprehensive recreation resort and comprehensive resort business defined by the Tourism Promotion Act |
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International conference facilities defined by the International Convention Industry Promotion Act
(When applying for a Foreign Investment Zone, complete payment of invested must be made within 5 years of being announced as Foreign Investment Zone) |
Designation Procedure Designated by the mayor or the governor of the province following a deliberation by the Foreign Investment Committee. |
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National tax (corporate tax, income tax) : 100% exempt for the first 5 years, 50% exemption for 2 years thereafter (As of 31. December. 2004, 100% exemption for the first 7 years and 50% exemption for the next 3 years thereafter) |
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Local tax (acquisition tax, registration tax, property tax and composite land tax) : Exemption for 8~15 years accordingly to the Ordinance |
| Exemption of rental fee, charges for statutory traffic-related contribution and support incentives |
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100% exempt from rental fee of the national property within the -Foreign Investment Zone. |
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Exemption from charge for statutory traffic-related contribution for construction of facilities within the Foreign Investment Zone. |
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Contents of support concerning common living facilities such as medical, educational, residential facilities are decided by the Foreign Investment Committee. |
| Support for Foreign Investment Zone development |
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Cost for construction and infrastructures will be supported for Foreign Investment Zone development business within national industry complex. |
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Upon designation as a Foreign Investment Zone, infrastructures such as roads, irrigation, sewage disposal plant facilities, and electricity facilities will be supported. |
| Exclusion of other laws in the Foreign Investment Zone |
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No approval from the relevant mayor-county-Ward Office Governor within the Foreign Investment Zone is required for partitioning of land. |
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A business in a Foreign-Investment Zone is not subject to the restriction over engagement of big business in a sector exclusively designated as a small, or medium business, or the mandatory employment for giving priority to those with a record of distinguished service to the country. |
| Exemption of selling and rental fee on national, provincial assets for foreign investors |
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Using, leasing and selling of central, local government owned land, factories and other national-provincial assets by foreign investment corporation is allowed under reserved procurement. |
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Period of lease can persist up to 50 years and can be re-leased. Construction of factories or
facilities on the leased land is permitted under the condition that upon expiration of the lease
period, they may be donated to central or local government or the land be recovered to their
original conditions. |
|
In cases where complete payment is considered difficult for selling of the land, due date for
payment may be deferred or may be payed through installed payment. |
|
National assets : Payment may be deferred for up to 1 year, or may be made as an installed payment for up to 20 years. |
|
Provincial assets : Conditions for deferment of payment or installed payment will be stipulated in accordance with laws concerning investment. |
| Foreigners who invest over 500 million USD may gain permission to operate noncitizen exclusive Casinos |
|
Foreigners who invest over 500 million USD on tourist facilities are conditionally permitted to
operate non-citizen exclusive Casino business.
(As of June 2004, this comes in force in Jeju Island under Special Act on Jeju Free International
City, and revision and notification of pending legislation of Tourism Promotion Act for other
provinces are being carried out.) |
|
Permission criteria |
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According to regulations on tourism business appointed by president decree, the entire 50 million USD must be invested within 5 years from the date of approval of the casino business |
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Casinos may be established within International Airport or international passenger terminal of the Metropolitan Area or within annex facilities of Hotels or international convention facilities within the province or specialized tourist regions. |
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Area specifically established
to enhanced business environment for foreign investment enterprise and living
conditions of the foreign employees. |
| Incheon Free Economic
Zone : |
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Date of Designation : 11.
August. 2003 (Ministry of Finance and Economy Notification No. 2003-19) |
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Location : In the vicinity
of Songdo (Yeonsu-gu), Yeongjong (Jung-gu), Cheongna region (Seo-gu), Incheon-si |
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Area : Songdo-53 km², Yeongjongdo-138
km², Cheongna-18 km² |
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Operator of development
business |
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Overall business operator
: City of Incheon |
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Unit business operator :
City of Incheon-Government Investment Organizations (including Incheon Airport
Organization), City of Incheon Development Organization-Domestic and foreign
private businesses |
| Busan/Jinhae Free
Economic Zone |
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Date of Designation : 30.
October. 2003 |
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Location : Vicinity of Gangseo-gu
(Busan-si), Jinhae-si (Gyeongsangnam-do) |
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Area : 5 areas, total 10
km² |
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New harbors : 10.7 km² |
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Myongji : 10.9 km² |
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Jisa : 40.2 km² |
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Dudong : 20.6 km² |
| Operator of development
business |
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Overall business operator
: Busan Metropolitan, Gyeongsangnam-do |
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Unit business operator :
Busan Metropolitan, Gyeongsangnam-do, Busan Gangseo-gu,
Jinhae-si, Ministry of maritime Affairs and Fisheries, Government investment
Organization
(including Korea Land Corporation), Busan Metropolitan, Busan Metropolitan
Development
Organization, Gyeongsangnam-do Development Organization, Busan New harbors
Corporation, Domestic and foreign private businesses etc. |
| Gwangyang Bay
Free Economic Zone |
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Date of Designation : 30.
October. 2003. |
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Location : Vicinity of Yeosu,
Suncheon, Gwangyang-si (Jeonanam), Hadong-gun (Gyeongnam) |
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Area : Total 88.98 km² (Jeonnam
76.42 km², Gyeongnam 12,56 km²) |
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Operator of development
business |
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Overall business operator
: Jeollanam-do, Gyeongsangnam-do |
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Unit business operator :
Jeollanam-do, Gyeongsangnam-do, Ministry of Maritime Affairs and Fisheries,
Ministry of Construction and Transportation, Korea Land Coporation, Yeosu-si,
Suncheon-si, Gwangyang-si, Hadong-gun, Domestic and foreign Private Business
etc. |
Tax exemption
criteria for tourism industry within the zone
Criteria : In cases whereby new facilities are being installed to maintain
following business; tourist
hotel business, maritime tourist hotel business, comprehensive recreation
industry, comprehensive
resort facility business, international conference facility business. --
Investment requirement is over
10 million USD |
Content
of tax exemption
Tax exemption applies to investors making investment in tourism industry
within Free Economic Zone. |
National tax and
local tax (acquisition tax, registration tax, property tax, composite land
tax
etc.) ⇒ 100% exempt for the first 3 years of initiation and 50% exemption
for 3 years thereafter. |
| Tariff exemption
: Tariff is exempted for capital goods directly utilized for businesses
that are exempt from Corporate tax. The imported goods must be declared
according to the customs law within 3 years after reporting of foreign investment.
(Special Excise Taxes and VAT are not eligible for exemption as in Foreign
Investment Zone) |
| Support for other
development business |
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Support for funds necessary
for setting up various convenience facilities for foreigner, such as site
development for lease for foreign investment corporation, exemption of land
rental fee, medical facilities, education facilities, residential houses
etc. are available. |
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Exemption of rental fees
for tenant foreign investment corporation within national-provincial
assets are available. |
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For tenant foreign investment
corporation, restriction of engagement of big businesses in sectors exclusively
designated for small, medium businesses will be applied. |
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Regulations such as restriction
of activities within overcrowd-inhibiting area and overcrowd-control area,
imposing and collecting of over-concentration charge, overall regulation
on facilities inducing population concentration, regulation on large development
business etc. in accordance with Metropolis Maintenance Plan Ordinance,
to foreign investments, will not be applied. |
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Regulations on unpaid holidays,
unpaid maternity leave, after-pay leave etc. will not be applied. As for
professional businesses that have undergone deliberation and decision by
the Free Economic Zone Committee, expanding the scope, or extending the
period of application for the worker dispatch system is possible. |
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Mayor-Governor of the province
is to publish, accept and process official documents in foreign
language to provide foreign language services. |
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Charges for ordinary transaction
of 10 thousand USD or less is payable directly as a non-national currency-based
means of payment between the party of transaction. |
| Jeju
Island Investment Promotion Zone |
Concept
Investment Promotion Zone, to promote tourism related business in Jeju Island,
is designated to businesses, where a domestic & foreign investor desires
to make investments of certain amount and is granted with various incentives
such as exemption of taxes and charges. |
Designated
area
In cases where new facilities are being installed to maintain the following
businesses; tourist hotel business, maritime tourist hotel business, comprehensive
recreation industry, comprehensive resort facility business, international
conference facility business, professional recreational business, tourist
pleasure boat business, tourist concert business, Korea traditional hotel
⇒ domestic, foreign investments need to be over 10 million USD. |
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In a case where a Jeju Island
investment Promotion Zone does not meet the designation criteria, Governor
of Province must give orders to the investor to satisfy the requirements
for the criteria within 6 years |
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When the designation criteria
has not been satisfied within the period of fulfillment, a deliberation
must be requested for the dismissal of the designation within 30 days
When acknowledged that there is an inevitable cause, the period of fulfillment may be extended one time only. |
Dissimilarity
with pre-existing foreign investment zone
Foreign Investment Zone is only subjected to foreign direct investment that
fulfil its requirements as foreign capitals, whereas subject of investment
Promotion Zone can be both a native and a foreign investor. Furthermore,
Foreign Investment Zone can only be designated when more than 20 million
USD are invested, while it is possible to be designated as Investment Promotion
Zone as long as the amount invested is over 10 million USD, and the scope
of target tourism relevant business for Zone designation has also been extended. |
Tax
exemption
Tax exemption applicable to investors residing in Jeju Island investment
Promotion Zone |
| National tax (corporate
tax and income tax) |
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100% exempt for the first
3 years after initiation of the business, 50% exemption for 2 years
thereafter
However, this applies when the deduction period has been extended for another 10 years or deduction rate has been increased under the ordinance |
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Acquisition tax and registration
tax : Exemption of the entire tax amount |
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Property tax : 100% exempt
for the first 3 years after initiation of the business, 50% exemption
for 2 years thereafter |
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Composite land tax : 100%
exempt of the tax base for the first 3 years after initiation of the
business, 50% exemption for 2 years thereafter |
Tariff exemption:
Tax is exempt for resources directly utilized for businesses that are exempt
from Corporate tax. The imported goods (with exceptions to goods for repairing
or exchange purposes) must be declared according to the customs law within
3 years after reporting foreign investment (Unlike Foreign Investment Zone,
only Tariff will be exempted, Special Consumption Taxes and VAT is not eligible
for exemption)
In cases where foreign investment meets the Foreign Investment Zone designation criteria.
Incentives for tax exemption is applicable according to the Foreign Investment Promotion Act |
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50% exemption for land development
tax, special agricultural tax, transfer of forest charge, alternate afforestation
charge, formation of alternate grassland, farmland development tax for investing
firm. |
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Lease and sales method of
national-provincial assets may be carried out by a reserved procurement
and may be leased for not more than 50 years. |
Promotion of International
Free City
To meet the emerging Pacific Age of the 21st Century, the government is
determining priority projects and consolidating various systematic schemes
to implement establishment of Free Tourism City as the phase 1 (2010) plan,
and Free Trade and Commerce City, as a phase 2 (2020) plan. |
Incentives for
investors
Incentives such as exemption of various taxes, rental fees and subsidy for
construction of foundation facilities are provided upon Investment Promotion
Zone Designation, according to Special Act on Jeju Free International City,
and Foreign Investment Zone designation, according to Foreign Investment
Promotion Act. |
| Systemized conditions
for inducement of private capital |
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50% Exemption of acquisition
tax and registration tax according to the Jeju Island Tax
Exemption Ordinance |
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Granting of various incentives
according to Special Act on Jeju Free International City |
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Granting of incentives on
taxes for foreigners according to Foreign Investment Promotion Act |
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Various privileged incentives
conferred to person who buys mass land for large resort development purposes |
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