map
home > Investment Guide > Investment Incentives
 
 

■ Tax exemption
 

Qualified business Qualified business
Tax Requirement Period
○ New growth engine industry technology accompanying business and
industrial support service business
○ Business in stand-alone type foreign investment zone
○ National tax
- Corporate tax
- Income tax
○ New growth engine industry technology accompanying business and industrial support service business
: None
○ Stand-alone type foreign investment zone
- Manufacturing business: USD 30 million
- Tourism business: USD 20 million
- Logistics business: USD 10 million
- R&D: USD 2 million
○ Tax exemption for 7 years
- 100% for 5 years
- 50% for 2 years
○ Local tax
- Acquisition tax
- Property tax
○ Aquisition tax exemption for 10 years (100% for 7 years, 50% for 3 years)
* New growth engine industry technology accompanying business and industrial support service business for 8 years (100% for 5 years, 30% for 3 years)
○ Property tax exemption
- Cheongju: 15 years (100% for 10 years, 50% for 5 years)
* New growth engine industry technology accompanying business and industrial support service business for 10 years (100% for 6 years, 30% for 4 years)
- Chungju: 10 years (100% for 7 years, 50% for 3 years)
○ Tariff
○ Special consumption tax
○ VAT
○ Capital goods brought in by foreign investors as dividends ○ Completion of import declaration within 5 years
○ Complex-type foreign investment zone
 
○ National tax
- Corporate tax
- Income tax
○ Manufacturing business: USD 10 million ○ Tax exemption for 5 years
- 100% for 3 years
- 50% for 2 years
○ Local tax
- Acquisition tax
- Property tax
○ Tax exemption for 10 years
- 100% for 7 years
- 50% for 3 years
○ Tariff ○ Capital goods brought in by foreign investors as dividends ○ Completion of import declaration within 5 years

 

■ Support for Lease

  • Rental period : 50 years
  • Detail
Classification Condition for exemption and reduction Lease exemption
Stand-alone type foreign investment zone Manufacturing business with investment over USD 30 million 100% exemption
Complex-type foreign investment zone High-level technology accompanying business with investment over USD 1 million 100% exemption
Manufacturing business with investment over USD 5 million 75% exemption
※ Support for lease(provision of leased land) can change depending on whether the budget is secured or not.

 

■ Financial Support

  • Employment subsidy
    ※ Chungbuk : within KRW 1 billion per business
    - Qualified business: In the case when companies hire 20 or more workers within five years from the date of FDI company registration
    - Amount of subsidy : KRW 100,000~500,000/month, within 6 months
  • Educational training subsidy
    ※ Chungbuk : within KRW 1 billion for each business
    - Qualified business : In the case when FDI companies hire 20 or more workers and provide them with educational training
    - Amount of subsidy : KRW 100,000~500,000/month, within 6 months

■ Cash Grant

  • Qualified business : business with over 30% of foreign investment share
  • Qualified business
    - High-level technology accompanying business or industrial support service business with investment of over USD 10 million
    - Foreign-invested companies that invest in parts, material and manufacturing industries with investment of over USD 10 million
    - Research institutes which hire more than 10 researchers with master's degree and more than three years of work experience
  • Use : lease or purchase of land, purchase of capital goods and establishment of infrastructure
  • Support range : 5%~15% of total investment amount (local budget) (Provision of leased land is included in cash grant)

■ Administrative Support

  • PM(project manager) system : government employees provide an exclusive support to projects from beginning to end
  • One-stop service : aftercare service system of Korea Industrial Complex Corporation and one-stop licensing service of local governments
 
 

 

INVEST KOREA

13, Heolleung-ro, Seocho-gu, Seoul, Republic of Korea (06792) | E-mail ikonline@kotra.or.kr

Korea Trade-Investment Promotion Agency | Copyright 2006. Invest KOREA. All rights reserved.