According to Yonhap News,

(SEOUL=Yonhap News)The Ministry of Trade, Industry & Energy announced on August 24 new guidelines on the operation of foreign investment zones (FIZ) that will be implemented on August 25.

According to the new guidelines, the minimum investment and ratio of building space to the total area will be lowered to allow companies to move into the complex-type FIZ at a cheaper rental rate.

A complex-type FIZ was established to attract small and medium-sized foreign-invested companies. At present, 185 foreign-invested companies are located in 20 complexes across the nation.

Previously, companies could benefit from a special rental rate (1 percent of the land value) only when its investment was more than double the amount of the land cost and when the ratio of the plant was more than double the building-to-land ratio (3-20 percent).

Companies that failed to meet the requirements had to pay a rate of 5 percent.

With the new guidelines, however, about 40 foreign-invested companies will benefit from a rental rate reduction. The new guidelines also include ways to generate solar energy through plant ceilings at FIZs.

prayerahn@yna.co.kr

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