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SECC

Saemangeum awaits Korean and Chinese investors and entrepreneurs who will jointly create new opportunities through economic cooperation.

Saemangeum Korea-China Economic Cooperation Complex and Korea-China Industrial Cooperation Complex

The Saemangeum Korea-China Economic Cooperation Complex (SECC) is an open economic zone that is to be jointly developed by Korea and China. Since the 2014 Korea–China Summit, the Korean government has been promoting the development of Saemangeum as an issue of high priority on its national policy agenda. At the forefront of the development of the SECC is the creation of the Korea-China Industrial Cooperation Complex (SICC), which will promote the industries of Korea and China in accordance with the bilateral free trade agreement. The officials of the two governments—the Ministry of Trade, Industry and Energy in Korea, and the Ministry of Commerce in China—regularly meet through the Vice Ministers’ Meetings to accelerate the progress of the SICC development project in Saemangeum.

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Source : Saemangeum Development and Investment Agency

Introducing the Saemangeum Program

The Saemangeum Program is an ambitious undertaking through which the Korean government seeks to create a new hub of economic, industrial, and tourist activities in Northeast Asia by developing a vast reclaimed land in Saemangeum. Encompassing a total area of 409 km2, Saemangeum, once developed, will amount to two-third of Seoul and one-half of Singapore in terms of size. The entire program is estimated to cost KRW 22.2 trillion, including KRW 10.9 trillion from the Korean government, KRW 0.95 trillion from local governments, and KRW 10.3 trillion from the private sector. In an effort to ensure the successful progress of the program, the Korean government has newly established a central administrative agency, the Saemangeum Development and Investment Agency, and is creating all major features of infrastructure, including harbors and roads, with the government revenue. The Korean legislature has also enacted the Special Saemangeum Act to provide a wide range of incentives and benefits for investors including tax exemptions and subsidies.

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Source : Saemangeum Development and Investment Agency

Location of Saemangeum

Situated in the center of the Pan Yellow Sea Region, Saemangeum provides easy access to China, Japan, and Eurasia. You can reach more than 60 cities with a population of at least 1 million each in just 3 hours by flight from Saemangeum. The center of Korea’s West Coast, Saemangeum also provides quick access to Seoul, Incheon, and the rest of central Korea, as well as to all other major cities in the country in just 2 hours.

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Source : Saemangeum Development and Investment Agency

Why Invest in the SICC

Investors can instantly move into and open their businesses in Districts 1 and 2 of the SICC upon signing the tenancy contract. The districts are already equipped with all the utilities that businesses need including electricity and water service. The diverse incentives being offered include tariff exemptions for businesses in the general bonded trade areas, long-term leases for foreign investing companies, and the suspension of regulatory requirements concerning the hiring of foreigners and their travels across national borders. The Korean Ministry of Trade, Industry and Energy, and the Chinese Ministry of Commerce have established a strong network of cooperation to turn Saemangeum into a new center of economic exchange and partnership between Korea and China.

Incentives for Foreign Investors in Saemangeum

The Korean government is actively recruiting foreign investors in the Saemangeum Program with a wide range of incentives including tax benefits, assistance with leases, and subsidies.

Tax benefits


Tax benefits
Target Type of Taxes Reduction Terms Investment Thresholds for Eligibility
Tenant businesses National taxes
Corporate tax
Income tax
100% exemption for five years, 50% discount for the next two years · Manufacturing: USD 30 million
· Tourism: USD 20 million
· Logistics: USD 10 million
· R & D: USD 2 million
100% exemption for three years, 50% discount for the next two years · Manufacturing: USD 10–30 million
· Tourism: USD 10–20 million
· R & D: USD 1–2 million
· Medical institutions: USD 5 million or higher
Tariffs
Excise tax
VAT
100% exemption for five years · Manufacturing: USD 10 million or higher
· Tourism: USD 10 million or higher
· Logistics: USD 10 million or higher
· R & D: USD 1 million or higher
· Medical institutions: USD 5 million or higher (for tariffs only)
Local taxes
Acquisition tax
Property tax
100% exemption for seven years, 50% discount for the next three years · Manufacturing: USD 10 million or higher
· Tourism: USD 10 million or higher
· Logistics: USD 10 million or higher
· R & D: USD 1 million or higher
· Medical institutions: USD 5 million or higher
Individual developers National taxes
Corporate tax
Income tax
100% exemption for three years, 50% discount for the next two years · Any developer planning a project worth at least USD 500 million in total cost, by investing USD 30 million of the developer’s own and/or with foreign investments for at least 50% of the total project cost
Tariffs 100% exemption for five years
Local taxes
Acquisition tax
Property tax
100% exemption for seven years, 50% discount for the next three years

Other incentives


Other incentives
Type Featuring Investment Thresholds for Eligibility
Lease support · Up to 100 years of free lease (50 years initially, renewable for another 50 years) USD 30 million or more
Subsidies Investment subsidies · Up to 10% (or up to KRW 5 billion) of the total investment except for the initial KRW 1 billion USD 1 billion or more
Employment subsidies · KRW 500,000–1,000,000 per employee per month, up to six months For each business hiring at least 20 full-time employees and hiring new employees
Training subsidies · KRW 100,000–500,000 per employee per month, up to six month