Invest KOREA

With its General Industrial Complex No. 5 designated a foreign investment zone (FIZ), Cheonan-si (City), Chungcheongnam-do (Province) is gearing up to attract foreign companies seeking to locate in the complex.

Cheonan plans to target foreign companies having concluded an investment memorandum of understanding with the province in collaboration with the Chungcheongnam-do Association of Foreign Investment Companies as well as foreign-invested companies doing operation in Korea.

In addition, the city also decided to team up with the Korea Trade-Investment Promotion Agency and the Ministry of Commerce, Industry, Trade and Energy to provide investors with the current information on investment.

The FIZ offers various incentives including land lease and tax cut. Foreign investors can lease land for up to 50 years with the annual payment worth 1 percent of the total land price. Manufacturers that invest more than USD 5 million are subject to 75 percent of reduction in the land rental payment. Manufacturers that invest more than USD 10 million are eligible for corporate tax exemption for the first three years and 50 percent for the following two years. Plus, they are exempted from local tax for 15 years and from tariffs on equipment whose import declaration is completed within five years.

The designation of a 336,208 square meter-land out of the 1.52 million square meter-General Industrial Complex No. 5 as a complex-type FIZ was announced on December 21.

Source Text

Source: Newsis (Feb. 4, 2013)

** This is the translation of a Korean article.