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■ Legal basis

  • Article 162 of the Special Act on Establishment of Jeju Special Self-Governing Province and International Free City

■ Purpose

  • Jeju Investment Promotion Zones are designated based on a special policy to develop core industries of the International Free City of Jeju Special Self-Governing Province. Once designated, the zones are eligible for various tax benefits including tax exemptions for both locals and foreigners, and special benefits for national or public properties.

■ Areas that qualify

  • An area in which an investor hopes to invest (individual)
    - If an investor wants to designate a region as an investment promotion district, he or she has to appoint a developer. Approval for the development plan, its confirmation, admission and notification must be received in accordance with individual ordinances.
  • An area that has location advantage for investment promotion and satisfies the following conditions:
    - Area confirmed as an amusement park facility or the second district in accordance with the Act for National Land Planning
    - The corporation/enterprise which intends to develop the project shall be invested by the central government, local government, local public agency or Jeju Development Center
    - Has to acquire an ownership or a right of use for more than two-thirds of the land

■ Eligible industries

  • Tourism Industry [Article 2 of Enforcement Decree of Tourism Promotion Act]à See Article 9, Annex 12
    - Tourist hotel, marine tourism hotel, Korean traditional hotel, general (except for golf course), ferry, performing place, amusement park, international conference facility
  • Cultural Industry [Article 2.1 of Cultural Industry Promotion Act]
    - Industries related to culture, music/video/games, print/publication/periodical publication, broadcasting, cultural asset, animation/character/edutainment/mobile-cultural contents/design (except industrial design), advertising/play/arts/handcraft
  • Management of Welfare Facility for The Aged [Article 31 of Old Age Welfare Law]
    - For the senior citizens, welfare facility, medical center, recreational facility, care center, protection center
  • Management of Youth Training Facility [Article 10.1 of Youth Activity Promotion Act]
    - Youth training facilities: youth training center and institute, youth culture house, youth specialized center, youth camp, youth hostel
    - Other facilities for youth: used for healthy activities other than training
  • Cable Cars and Track Business [Article 2.7 of Cable Car Transportation Act]
    - Cable car industry: Making profits from transporting people or cargoes by using cable cars excluding designated ones
  • Electricity-Producing Enterprise Utilizing New Energy and Renewable Energy [Article 2.1 of the New and Renewable Energy Development, Usage and Distribution Promotion Act]
    - Bio energy generated by converting solar energy and biotic resources, energy generated by liquidifying or vaporizing wind and water power, fuel cells and coals, marine energy, waste energy, geothermal energy, hydrogen energy
  • Educational Institutions [Articles 216, 217, 220, 223 of the Special Act on Establishment of Jeju Special Self-Governing Province and International Free City]
    - Autonomous schools, international high schools, foreign educational institutions, international schools
  • Foreign Medical Institutions [Article 307 of the Special Act on Jeju Special Self-Governing Province and Jeju Free International City]
    - General hospitals, hospitals, convalescent hospitals, dental clinics established by a foreign corporate body in the province
  • Educational Centers (training institutes) [Annexed list No. 10.B of Enforcement Decree of Construction Act]
    - Educational centers (institutes for training and other similar purposes)
  • Industry Utilizing Advanced Technology [Article 5 of the Industry Development Act]
    - The Minister of Trade, Industry and Energy announces the scope of the products with consideration of ripple effects among industries, value added creation and contribution to the improvement of industrial structure (limited to the fields of electricity, electronics, information technology, new materials, and bio-science).
  • Health and Medical Industry [Article 2 of Health and Medical Technology Promotion Act]
    - Technology related to medical sciences, dentistry, traditional Korean medicine, medical engineering, medical informatics, etc., and technology related to the development and enhancement of pharmaceuticals, medical devices, foods, cosmetics, medicinal herb products, etc.
  • Food and Beverage Production [Article 2.1 of the Act on the Accumulation of Relevant Industries and Establishment of factory]
    - Limited to facilities built within the water industrial cluster based on Article 378.2 of the Jeju Special Act.

■ Designation Criteria: Tax Exemptions

National tax
  • Corporate tax, income tax: 100% exemption for 3 years, 50% exemption for 2 years
  • Tariff: 100% exemption for the capital goods imported within the initial three years from the day of designation
Local tax
  • Acquisition tax: 100% exemption (limited to acquisitions made within 5 years of the initial date)
  • Property tax: 100% exemption for 10 years from the initial date
    *Individual-type: date of designation / complex-type: first date of real estate acquisition or the move-in date, whichever is earlier
Other charges
  • 100% exemptions: development charge, occupation or usage fee for publicly owned sea or water
  • 50% exemptions: farmland development charge, alternative green area establishment fee, alternative forest resource establishment fee
  • Public sewage user fee (50% until 2014, 25% in 2015, 15% in 2016)

■ Designation Criteria: Lease of national or public land

  • Legal basis: Article 165 of the Special Act on Establishment of Jeju Special Self-Governing Province and International Free City
  • Lease Period: within 50 years (renewable), eligible for construction as permanent facility
  • Exemption candidates and criteria: up to 75% exemption of rental fees for science and technology complexes, investment promotion zone tenant companies, international organizations
 
 
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