The Ministry of Trade, Industry and Energy (MOTIE) will adopt a small complex system for foreign investors.

The size of a small foreign investment complex is a minimum 80,000㎡, equivalent to a quarter of that of existing foreign investment complexes. There have so far been two types of foreign investment complexes: an individual-type complex for large investments from a single firm; and a group-type complex, over 330,000㎡ in size, for investments from multiple companies.

“We have decided to adopt small complexes to quickly respond to the demands of small- and mid-sized foreign firms and ease concentration in the Seoul metropolitan area,” said a MOTIE official.

To prevent small complexes from being left idle for a long time, the government will designate a small complex when the actual demands of foreign companies cover more than 50 percent of the complex. Cities and provinces that have group-type complexes can establish a small complex only when the actual demands of foreign firms cover 80 percent of the complex.

An annual rental fee of a small complex is 1 percent of the land price, far lower than that of an existing complex, which stands at 3-5 percent of the land value. Foreign enterprises investing USD 1 million or more in advanced technology are exempt from a rental fee for a small complex.

“We expect that the high incentives of small foreign investment complexes will attract collective foreign investments, leading to the generation of jobs and boosting the local economy,” said a MOTIE official.

Source: Newsis (Apr. 17, 2013)

** This article was translated from the Korean.