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[Gangwon-do]
East Coast Free Economic Zone (EFEZ)
Date
2014.05.27
■ Development Plan
| Item | Location | Area(㎢) | Development Concept |
Project Budget (KRW 100 mil.) |
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| 1st phase | Stepwise | Total | Central Government Budget | Local Government Budget | Private Investment | |||
| Total | 4 districts | 8.25 | 13.76 | 13,036 (100%) |
1,196 (9.2%) |
1,574 (12.0%) |
10,266 (78.8%) |
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| 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 |
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| 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 |
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| 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) |
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| 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. |
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| 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 |
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□ Investment Contacts
| ㆍInvestment Inducement Team 1, Office of East Coast FEZ: T.+82-33-539-7653 www.efez.go.kr ㆍGangwondo Global Business Department: T.+82-33-249-2082 |