Tax Support | Busan

Investment Incentives

Eligibility

Foreign-invested enterprises (FIEs) with a foreign investment ratio of 30% or higher that meet one of the following criteria

New growth engine industries, industries involving advanced technologies/products, materials/parts/equipment industries, companies creating new employment above a certain scale by sector, or Busan City strategic industries
Foreign research institutes performing R&D functions with 5 or more full-time research personnel
FIEs owning businesses in 3 or more countries that establish a regional headquarters within the city jurisdiction to oversee 2 or more regions

Tax Incentives

Local Tax Reductions

Local Tax Reduction Incentives
Category	Details
Target	Assets acquired or held by foreign-invested enterprises
Reduction Methods	Acquisition Tax	100% reduction for up to 15 years (Article 5 of the 「Busan Metropolitan City Ordinance on City Tax Reduction and Exemption」)
Reduction Methods	Property Tax	Reductions for up to 10 years ▹ 100% for 7 years, followed by 50% for 3 years (Autonomous District Ordinance on District Tax Reduction and Exemption)

* Upon residency in Opportunity Development Zones (Mieum FI Zone): Max 100% reduction in Acquisition Tax; max 10-year reduction in Property Tax (100% for 5 years + 50% for 5 years)

National Tax Reductions

National Tax Reduction Incentives
Reduction Target	Method
Reduction Target	Applicable Taxes	Eligible Capital Goods
New Growth Engine Industries Installation or operation of factory facilities Foreign investment of USD 2 million or more Enterprises in Individual-type Foreign Investment Zones	Customs Duties Individual Consumption Tax Value Added Tax (VAT)	Capital goods imported by FIEs using domestic or foreign payment means contributed by foreign investors Capital goods introduced as objects of investment by foreign investors ※ Applicable only to capital goods for which import declaration under [the Customs Act] is completed within 5 years (7 years if extended) of investment notification
Enterprises in Complex-type Foreign Investment Zones	Customs Duties

* (Corporate Tax) 100 % for 5 years + 50 % for 2 years ◃ Incentives for Opportunity Development Zones (Mieum)