(MUAN=Newsis News) Foreign investment areas will be designated within the Sepung Industrial Complex in Gwangyang, South Jeolla Province.
South Jeolla Province and the Gwangyang Bay Area Free Economic Zone Authority announced that they will seek designation of foreign investment zone in a bid to attract more foreign-invested firms.
Under their plan, 82,641 square meters in the 2,420,000-square-meter Gwangyang Sepung Industrial Complex will be foreign investment zone. Upon the completion of the designation process, the central government, South Jeolla Province, and Gwangyang City will jointly purchase plots of land and lease them to foreign-invested companies at a reduced rent.
Foreign firms moving into the area will be exempted from corporation tax, acquisition tax and property tax for up to 100% for 5 years.
The Sepung Industrial Complex already satisfies requirements for a foreign investment zone. Out of total area, land pledged investment should exceed 30% and land under memorandum of understanding (MOU) should exceed 50% to be a foreign investment zone. Those figures for the Sepung Industrial Complex are 80% and 72% respectively.
South Jeolla Province expects the designation process to complete as early as the first half of this year after being passed deliberation of the Foreign Investment Committee of the Ministry of Trade, Industry and Energy.
"If designated as a foreign investment zone, we plan to offer land to foreign companies at a reduced rent funded by the central government, South Jeolla Province and Gwangyang City," a provincial official said, adding that the land purchase is estimated to cost around KRW 24.6 billion.
praxis@newsis.com
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Source: Newsis News (Jan. 9, 2017)