Cultural Industry Investment Promotion Zone
What is an Investment Promotion Zone?
As a part of the Asian Cultural Hub City Project, special zones are designated for purposes of promoting investment in the cultural industry, developing the cultural industry in urban areas and building culture clusters and granted tax breaks, funding and other benefits.
Designation of an Investment Promotion Zone: Qualifications
Investment: Successful investment attraction of 3 billion won or more
- Eligible business categories
- Tourism, accommodations and tourist facilities (Not including golf courses/international convention, recreation facilities or tourist service facilities)
- Youth training facilities
- Education and training centers
- Successful investment attraction of 500 million won or more in the cultural industry.
※ Cultural industry defined in Article 2, Subparagraph 1 of the Framework Act on the Promotion of Cultural Industries
Eligible regions
- An area selected by the investor.
- A region that is in an advantageous position for promoting investment and satisfies the conditions set forth by the President.
- An area where an investor wishes to make investment in; an area with ten or more cultural enterprises; or an area where the office and support facilities of cultural enterprises account for 50% or more of the total area.
- An area designated as a Venture Business Development and Promotion Zone or as a Class-II District-Unit Planning Zone.
- An area equipped or planned to be equipped with infrastructure (e.g. universities, research institutes) for the development of the cultural industry.
Benefits granted to Investment Promotion Zones
- An investor investing in the cultural industry (500 million won) or in a tourist facility or a youth training facility (3 billion won) inside an Investment Promotion Zone.
- Corporate tax and income tax: 100% exemption for three years, followed by 50% exemption for two years
- Property tax: Exemption for fifteen years.
National and public property benefits
- The use, profit, lease and sale of property are allowed to resident companies (Fifty-year lease, renewable)
- The payment of purchase price can be postponed (up to one year), and payment on an installation basis is also allowed (up to twenty years. Interest rate of 3~5%)
- Permanent structures such as factories can be established.
- Rent discount also available (up to 10/1000 of rent rate. Discount rate of 25%)
Subsidies
- National fund subsidies (Ministry of Culture)
- Fund needed for financing the site purchase price, obtaining rent discount, development projects, etc.
- Local government subsidies (city, gu)
- Site subsidy: Within 20% of parceled-out land price. Within 45% for companies located in the Seoul Metropolitan Area.
- Relocation subsidy: For an enterprise with more than ten employees, up to 1 million is granted to each extra employee (A maximum of 500 million won per enterprise)
- Employment subsidy: For an enterprise that newly employs more than ten permanent employees, up to 1 million won is granted to each extra employee per month for up to twelve months.
- Training subsidy: For an enterprise that trains more than ten persons, up to 1 million won is granted to each extra person for up to six months.
- Consulting subsidy: Within 5% of investment (A maximum of 100 million won per enterprise)
Relocation promotion support
- Facilities and PR expenses support
- Support including shared facilities, shared office spaces, business incubation center, marketing support center, installation of shared stores, and product PR expenses.
- Other support: Marketing support, free-of-charge use of 3D production software, IDC service support, etc.
