Site Location Support
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Location Support
Site support package designed to incentivize foreign investors is divided into three separate zones; Foreign Investment Zones (FIZs), Free Economic Zones (FEZs) and Free Trade Zones (FTZs), and the scope and coverage of the program includes a rent reduction and tax cuts (tariffs, local taxes etc.)
Support Programs for Businesses in FIZs
| Type | Category | Details | |
|---|---|---|---|
| Complex(cluster) Type | Outline | A specifically designated area to encourage small and mid-sized foreign-invested companies | |
| Period | Within 50 years from the initial conclusion of a tenancy agreement (the contract shall be renewed or extended for every 10 years) | ||
| Eligibility | A company; -whose foreign investor’s ownership goes above 30%, -whose foreign investments amount to more than KRW 100 mln | ||
| Tenant requirements | A company; -whose investments are equivalent, in value, to, or more than, its land acquisition costs, -which has built up or newly established its production facility whose total floor area falls under the category of “Standard Factory Area Ratio (12%)” | ||
| Rent reduction |
- A company which is involved in the new growth industries and reaches USD 1mln in sales (different reduction rate may be imposed depending on its investments or the number of employees from the period of time ending on complete(100%) rent relief for 10 years from the initial date of investment) - A manufacturing company that reaches USD 2.5mln in sales and hires more than 200 full-time workers - A manufacturing company that reaches USD 5mln in sales and moves in the local materials-components industry cluster |
100% reduction | |
| -A manufacturing company that reaches USD 2.5mln in sales and hires more than 150 full-time workers | 90% reduction | ||
|
-A manufacturing company that reaches USD 5mln in sales -A manufacturing company that reaches USD 2.5mln in sales and hires more than 70 full-time workers |
75% reduction | ||
| Independent(Individual) Type | Outline | An area designated in accordance with applications by a large-scale investor | |
| Period | Within 50 years from the initial conclusion of a tenancy agreement (the contract shall be renewed or extended for every 10 years) | ||
| Eligibility |
A company whose investments shall go above minimum investment requirements set by each business category (Manufacturing: USD 30mln or more/ Tourism: USD 20mln or more/ Logistics: USD 10 mln or more) |
||
| Tenant requirements | A company whose investments are equivalent, in value, to, or more than, double the costs to pay for the land acquisition | ||
| Rent reduction | A company which meets contractual eligibility and requirements of tenancy | 100% reduction | |
| Service Type | Outline | A designated area to promote FDI attraction in R&D and value-added service business | |
| Period |
-Leased land :Sign tenancy agreement within 10 years -R&D: Sign tenancy agreement within 50 years -Leased building: Sign tenancy agreement within 5 years (contract renewal is allowed) |
||
| Eligibility for tenancy |
-A company;
-whose foreign investor’s ownership goes above 30%,-whose foreign investments amount to more than KRW 100 bln -A company which meets minimum employment requirements, set by each business category (R&D: 5 or more researchers, Financial /insurance services, knowledge services, business support services (excluding logistics), entertainment and culture industry: 15 or more ) |
||
| Requirement for tenancy | A company whose investments are equivalent, in value, to, or more than, the marketable cost of a building or property leased. | ||
| Rent reduction | Rent reduction: equal to the reduction rate applicable to complex(cluster)type zones | 75%~100% reduction | |
| Rental assistance for renters | 50% reduction | ||
Current Status
| Type | District (Company Name) | Gross Area (1,000㎡) | |
|---|---|---|---|
| FIZs | Complex(cluster) type | Dalseong FIZs | 104.2 |
| Independent(individual) type | TaeguTec Ltd. | 57.8 | |
| SSLM | 110.4 | ||
| IMC Endmill | 58.3 | ||
| FEZs | Daegu-Gyeongbuk FEZs | Daegu Technopolis | 7,259 |
| Daegu Suseong Medical District | 976 | ||
| Sinseo Meditech District | 1,030 | ||
| Daegu Int’l Fashion Design District | 1,170 | ||