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Investment Incentives

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Tax Reductions or Exemptions

Tax Reductions or Exemptions : Qualifications, Local Tax, Customs Duty and Others
Qualifications Local Tax Customs Duty and Others
A. Industry-supporting service businesses or high-tech businesses Acquisition, Property, Registration Taxes:
All exempted for 15 years
Customs Duty on Imported Capital Goods, Special Consumption Tax, VAT:
All exempted for a maximum of 5 years
B. Companies within an individual-type foreign investment zone (FIZ)
Category Minimum amount of foreign investment
a) Manufacturing USD 30 Million
b) Tourism USD 20 Million
c) Logistics and social infrastructure USD 10 Million
d) R&D (With at least 10 employees with a master's degree or higher) USD 2 Million
C. Companies within a complex-type FIZ or a free economic zone (FEZ) Exempt from Customs Duty only for a maximum of 5 years
a) Manufacturing USD 10 Million
b) Logistics USD 5 Million
※ National Tax: Corporate tax and Income Tax

Rent* Reductions or Exemptions on National or Public Properties

Rent* Reductions or Exemptions : Qualifications, Reduction Rate, Period
Qualifications Reduction Rate Period
A. Companies within an individual-type FIZ Exempted 50 years
B. High-tech or industry-supporting service companies with a minimum investment of USD 1 million Complex-type FIZ Fully exempted
National Industrial Complex 50%
C. Manufacturing with a minimum invesetment of USD 5 million Complex-type FIZ 75%
National Industrial Complex 50%
※ Rent: 1% of the construction cost (1% of the official land price in case it is higher than the construction cost

Financial Support

Financial Support : Qualification, Category, Support Limit
Qualification Category Support Limit
FDI should be over 30% of the total investment or the foreigner should be the largest shareholder New investment 50% of the FDI volume
Additional investment for facility expansion 1) 50% of the FDI volume or
2) 25% of FDI volume+retained earnings*
※ In the case of 2), FDI should be over 25% of the total investment

Subsidies

Subsidies : Category, Description
Category Description
Employment subsidy
(monthly)
From KRW 0.1 million up to KRW 1 million per person from the 21st employee for up to 6 months, given more than 20 people are newly employeed (maximum amount limited to KRW 0.3 billion per company)
Education and training subsidy
(monthly)
From KRW 0.1 million up to KRW 1 million per person for up to 6 months, given more than 20 people are newly employeed (maximum amount limited to KRW 0.3 billion per company)

Cash Grant

Cash Grant : Topic, Description
Topic Description
Support criterion The share of FDI should be more than 30%
Qualifications A. High-tech or industry-supporting service companies with FDI of over USD 10 million
B. Parts and materials manufacturers with FDI of over USD 10 million
C. R&D involving FDI of over USD 5 million and over 20 new employees with a master's degree or higher
Purposes Land purchase, construction, equipment purchase, employment, employee training & education, or infrastructure construction
Evaluation criteria Technology transter effects, job creation effects, locating in an underdeveloped area, not-overlapping with domestic investment
Support amount Negotiable within the amount of 5% of the total FDI