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Investment Incentives

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Tax Exemption

Tax Exemption Target: Qualified business, Tax, Requirement, Period
Qualified business Qualified business
Tax Requirement Period
  • New growth engine industry technology accompanying business and industrial support service business
  • Business in stand-alone type foreign investment zone
  • National tax
    • Corporate tax
    • Income tax
  • New growth engine industry technology accompanying business and industrial support service business
    : None
  • Stand-alone type foreign investment zone
    • Manufacturing business: USD 30 million
    • Tourism business: USD 20 million
    • Logistics business: USD 10 million
    • R&D: USD 2 million
  • Tax exemption for 7 years
    • 100% for 5 years
    • 50% for 2 years
  • Local tax
    • Acquisition tax
    • Property tax
  • Aquisition tax exemption for 10 years (100% for 7 years, 50% for 3 years)
    * New growth engine industry technology accompanying business and industrial support service business for 8 years (100% for 5 years, 30% for 3 years)
  • Property tax exemption
    • Cheongju: 15 years (100% for 10 years, 50% for 5 years)
      * New growth engine industry technology accompanying business and industrial support service business for 10 years (100% for 6 years, 30% for 4 years)
    • Chungju: 10 years (100% for 7 years, 50% for 3 years)
  • Tariff
  • Special consumption tax
  • VAT
Capital goods brought in by foreign investors as dividends Completion of import declaration within 5 years
Complex-type foreign investment zone
  • National tax
    • Corporate tax
    • Income tax
Manufacturing business: USD 10 million
  • Tax exemption for 5 years
    • 100% for 3 years
    • 50% for 2 years
  • Local tax
    • Acquisition tax
    • Property tax
  • Tax exemption for 10 years
    • 100% for 7 years
    • 50% for 3 years
  • Tariff
Capital goods brought in by foreign investors as dividends Completion of import declaration within 5 years

Support for Lease

  • Rental period: 50 years
  • Detail
    Support for Lease: Classification, Condition for exemption and reduction, Lease exemption
    Classification Condition for exemption and reduction Lease exemption
    Stand-alone type foreign investment zone Manufacturing business with investment over USD 30 million 100% exemption
    Complex-type foreign investment zone High-level technology accompanying business with investment over USD 1 million 100% exemption
    Manufacturing business with investment over USD 5 million 75% exemption
    ※ Support for lease(provision of leased land) can change depending on whether the budget is secured or not.

Financial Support

  • Employment subsidy
    ※ Chungbuk: within KRW 1 billion per business
    • Qualified business: In the case when companies hire 20 or more workers within five years from the date of FDI company registration
    • Amount of subsidy: KRW 100,000~500,000/month, within 6 months
  • Educational training subsidy
    ※ Chungbuk: within KRW 1 billion for each business
    • Qualified business: In the case when FDI companies hire 20 or more workers and provide them with educational training
    • Amount of subsidy: KRW 100,000~500,000/month, within 6 months

Cash Grant

  • Qualified business: business with over 30% of foreign investment share
  • Qualified business
    • High-level technology accompanying business or industrial support service business with investment of over USD 10 million
    • Foreign-invested companies that invest in parts, material and manufacturing industries with investment of over USD 10 million
    • Research institutes which hire more than 10 researchers with master's degree and more than three years of work experience
  • Use: lease or purchase of land, purchase of capital goods and establishment of infrastructure
  • Support range: 5%~15% of total investment amount (local budget) (Provision of leased land is included in cash grant)

Administrative Support

  • PM(project manager) system
    • government employees provide an exclusive support to projects from beginning to end
  • One-stop service: aftercare service system of Korea Industrial Complex Corporation and one-stop licensing service of local governments