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[Gangwon-do] East Coast Free Economic Zone (EFEZ)

■ Development Plan

Item Location Area(㎢) Development
Project Budget
(KRW 100 mil.)
1st phase Stepwise Total Central Government Budget Local Government Budget Private Investment
Total 4 districts 8.25 13.76   13,036
Bukpyeong ICI (International Compound Industry) Area Songjeong-dong (Donghae Port) and Danbong-dong, Donghae-si 4.61 1st phase:4.61
2nd phase:0.87
ㆍNon-ferrous metal/Hi-tech material parts complex
ㆍLogistics and Distribution Complex
ㆍForeign Investment Complex
7,854 560 560 6,734
Mangsang Flora City Mangsang-dong, Donghae-si 1.82 1st phase:1.82
2nd phase:2.64
3rd phase:1.37
Development of maritime/compound luxury tourist city 2,665 186 186 2,293
Okgye Hi-tech material convergence industry district Okgye-myeon, Gangneung-si 0.71 1st phase:0.71
2nd phase:0.63
ㆍHi-tech material parts and R&D
ㆍLease-based industrial complex for foreign companies
966 294 672 -
Gujeong Zero-carbon city Gujeong-myeon, Gangneung-si 1.11 1st phase:1.11 Apartment + commercial/office + International schools + Specialized colleges, etc. 1,551 156 156 1,239

■ Locations

■ Incentives

Incentives Description Laws/Regula-tions
Tax Reduction 5 Year Condition ○ Manufacturing/Tourism (USD 10 mil. or more,) Logistics/Medical business (USD 5 mil. or more)
○ Developer
Item 1, Article 16 of Free Economic Zones Act
Article 121-2, Restriction of Special Taxation Act
Benefits ○ Corporate Tax/Income Tax (Taxed by the central government): 100% tax reduction for 3 years, 50% for 2 more years
○ Customs Duty: 100% for 5 years (for imported capital goods only)
○ Acquisition Tax/Property Tax (Local Tax): 100% exemption for 15 years
7 Year Condition ○ Manufacturing (USD 30 mil. or more,) tourism (USD 20 mil. or more) and logistics business (USD 10 mil. or more)
○ R&D (USD 2 mil. or more and full-time employment of master's degree-level researchers by 10 or more)
Benefits ○ Corporate Tax/Income Tax (Taxed by the central government): 100% tax reduction for 3 years, 50% for 2 more years
※ The tariff, acquisition tax, and property tax remain the same as those in 5-year conditions.
Property Support Lease ○ 50-year lease for publicly owned land
○ The rent is 10/1000 of the land price.
Items 2 and 4, Article 16 of Free Economic Zones Act
Rental Fee reduction 100% 75% 50%
Foreign investment (USD 10 mil.) 2 1~2 0.5~1
Employment (number of employees/day) 300 200~300 100~200
Export ratio (%) 100 75~100 50~75
Purchase ○ Non-tender contracts with the price set at the development cost without margins (publicly owned properties) Item 5, Article 16 of Free Economic Zones Act
Cash Support Condition ○ Foreign direct investment company registered in Korea wherein the ratio of shares owned by foreigners is 30% or more
○ Building or expanding factories to make parts or materials related to hi-tech. - Investment amount of USD 10 mil. or more to build a new -- or expand an existing -- R&D facility hiring 10 or more researchers with masters' degrees
Article 14-2 of Foreign Investment Promotion Act
Subsidies ○ To be determined by discussion, at least 5% or more of the minimum FDI
Infrastructure Support ○ Priority in support grants from the central government’s fund for infrastructure in FEZ. (50% from the central government budget, 50% from the local budget) Article 18 of Free Economic Zones Act
Mitigation of the labor regulation ○ Exemption from the duty to hire disabled people, regulations on the duration and type of works available for dispatched workers lifted; the employer may also give their employees unpaid vacations. Article 17 of Free Economic Zones Act
Freedom of foreign exchange transactions ○ Foreign exchange transactions possible without reporting to the authority within the limit of USD 10 mil. Article 21 of Free Economic Zones Act
Administrative support ○ One-Stop administrative support (FEZ Bureau, PM-designated)
○ Official letters from public offices may be sent in English if requested by a foreign direct investment company.
Article 27-2 of Free Economic Zones Act
Article 20 of Free Economic Zones Act


□ Investment Contacts

ㆍInvestment Inducement Team 1, Office of East Coast FEZ: T.+82-33-539-7653
ㆍGangwondo Global Business Department: T.+82-33-249-2082
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