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1. Tax Reductions or Exemptions

Qualifications Local Tax Customs Duty and Others
A. Industry-supporting service businesses or high-tech businesses Acquisition, Property, Registration Taxes: All exempted for 15 years Customs Duty on Imported Capital Goods, Special Consumption Tax, VAT: All exempted for a maximum of 5 years
B. Companies within an individual-type foreign investment zone (FIZ)
Category Minimum amount of foreign investment
a) Manufacturing USD 30 Million
b) Tourism USD 20 Million
c) Logistics and social infrastructure USD 10 Million
d) R&D (With at least 10 employees with a master's degree or higher) USD 2 Million
C. Companies within a complex-type FIZ or a free economic zone (FEZ) Exempt from Customs Duty only for a maximum of 5 years
a) Manufacturing USD 10 Million
b) Logistics USD 5 Million
* National Tax: Corporate tax and Income Tax

 

2. Rent* Reductions or Exemptions on National or Public Properties

Qualifications Reduction Rate Period
A. Companies within an individual-type FIZ Exempted 50 years
B. High-tech or industry-supporting service companies with a minimum investment of USD 1 million Complex-type FIZ Fully exempted
National Industrial Complex 50%
C. Manufacturing with a minimum invesetment of USD 5 million Complex-type FIZ 75%
National Industrial Complex 50%
* Rent: 1% of the construction cost (1% of the official land price in case it is higher than the construction cost

 

3. Financial Support

Qualification Category Support Limit
FDI should be over 30% of the total investment or the foreigner should be the largest shareholder New investment 50% of the FDI volume
Additional investment for facility expansion 1) 50% of the FDI volume or 2) 25% of FDI volume+retained earnings*
* In the case of 2), FDI should be over 25% of the total investment

 

4. Subsidies

Category Description
Employment subsidy (monthly) From KRW 0.1 million up to KRW 1 million per person from the 21st employee for up to 6 months, given more than 20 people are newly employeed (maximum amount limited to KRW 0.3 billion per company)
Education and training subsidy (monthly) From KRW 0.1 million up to KRW 1 million per person for up to 6 months, given more than 20 people are newly employeed (maximum amount limited to KRW 0.3 billion per company)

5. Cash Grant

Topic Description
Support criterion The share of FDI should be more than 30%
Qualifications A. High-tech or industry-supporting service companies with FDI of over USD 10 million
B. Parts and materials manufacturers with FDI of over USD 10 million
C. R&D involving FDI of over USD 5 million and over 20 new employees with a master's degree or higher
Purposes Land purchase, construction, equipment purchase, employment, employee training & education, or infrastructure construction
Evaluation criteria Technology transter effects, job creation effects, locating in an underdeveloped area, not-overlapping with domestic investment
Support amount Negotiable within the amount of 5% of the total FDI
 
 

 

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