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Foreign Investment Zone

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Industrial locations include areas to support foreign investors such as free economic zones, foreign investment zones and free trade zones, and locations supported in the form of lease or sale. These areas are subject to tax relief as well as location support when certain requirements are met. There are, in some cases, exceptions to those restricted by other legislation.
Designation of Foreign Investment Zones (Article 18 of the Foreign Investment Promotion Act)
Please refer to the information below Please refer to the information below
  1. negotiate - KOTRA, local government ↔ foreign investor
  2. make a decision on investment - foreign-invested company → KOTRA, local government
  3. negotiate practical businesses and establish development plans - KOTRA, local government ↔ ministry of trade, industry and energy
  4. request designation of foreign investment zone - local government → Ministry of Trade, Industry and Energy
  5. Review Feasibility of designation of foreign investment zone - Foreign Investment Promotion Division, Ministry of Trade, Industry and Energy
  6. deliberated by the foreign investment working committee - Chairperson : VICE Ministry of Trade, Industry and Energy
  7. approved by the foreign investment committee - Chairperson : Ministry of Trade, Industry and Energy
  8. announce designation - Local Government
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Comparison of Complex-Type and Individual-Type
Comparison of Complex-Type and Individual-Type : Category,Complex-Type Foreign Investment Zone,Individual-Type Foreign Investment Zone
Category Complex-Type Foreign Investment Zone Individual-Type Foreign Investment Zone
Overview Areas designated in existing industrial complexes to attract small- and medium-sized foreign-invested companies (from 1994) Areas deliberated and designated after large-scale investors choose (from 1997)
Location Industrial complexes (national and general) No limit (Investors’ choice)
Requirements for Designation (Occupancy)
  • Requirements for designation : See above
  • Requirements for occupancy : Foreign investment ratio of at least 30%·at least KRW 100 million
Requirements for designation : At least minimum amount designated for each business; decided after deliberation (USD 30 million for manufacturing, USD 20 million for tourism, USD 10 million for logistics)
Location Support
  • Purchase and lease land
  • ratio of central and local government expenditure
    • (Metropolitan) 30:70 (Non-metropolitan) 60:40
  • Purchase and lease land (if requested);
  • ratio of central and local government expenditure
    • (Metropolitan) 30:70 (Non-metropolitan) 60:40
Tax Reductions or Exemptions Requirements for reductions or exemptions
  • Manufacturing : At least USD 10 million
  • Logistics : At least USD 5 million
Same as for requirements for designation
Local tax Exempted for up to 15 years in accordance with local government ordinances Exempted for up to 15 years in accordance with local government ordinances
Tariff Exempted for 5 years from the date of import of capital goods Exempted for 5 years from the date of import of capital goods
Value-added tax N/A Exempted for 5 years from the date of import of capital goods
Rental Fee Reductions or Exemptions
  • Businesses dealing technologies for new growth engine industries worth USD 1 million or more: 100% for 10 years
  • Manufacturing worth USD 5 million or more: 75% (100% within special complexes for materials and parts)
  • Manufacturing worth USD 2.5 million or more with 200 full-time workers or more: 100%
  • Manufacturing worth USD 2.5 million or more with 150 full-time workers or more: 90%
  • Manufacturing worth USD 2.5 million or more with 70 full-time workers or more: 75%
100% when designated and leased
Limit on Occupancy (FDI)
  • Execution within 5 years from the date of occupancy contract (and retain)
  • Invest 100% or more of the site value (officially assessed price) (FDI)
  • Factory establishment area: Standard factory area ratio per business (at least 12%)
  • Execution within 5 years from the date of occupancy contract (and retain)
  • Minimum investment amount per business (two times or more of the site value
※ Companies that intend to receive reductions or exemptions of rental fees in foreign investment zones must submit supporting documents to a competent authority. Rental fees are reduced or exempted from the month in which a decision is made. Companies must pay the full rental fees until the completion of factory establishment.
There are three types of foreign investment zones: complex-type, individual-type, and service-type. Complex-type and individual-type zones offer low rental fees. If certain requirements are met, additional rental reductions and tax reductions or exemptions are applied. Service-type zones offer incentives to support rental fees, but no tax reductions or exemptions.

Foreign Investment Zone

Designation of Foreign Investment Zones
As of end-December 2020
Designation of Foreign Investment Zones : Complex-Type,Individual-Type,Service-Type
Complex-Type Individual-Type Service-Type
Number of FIZs 28 78 3
※ An official count is announced after Mar. 2021.
Complex-type Foreign Investment Zones
As of end-December 2020
Please refer to the information below Please refer to the information below
  • Gyeonggi Province : Jangan High-Tech 1 FIZ, Jangan High-Tech 2 FIZ, Dangdong FIZ, Oseong FIZ
  • Gangwon Province : Munmak FIZ
  • Chungcheongbuk Province : Ochang FIZ, Jincheon Sansu FIZ, Chungju FIZ
  • Chungcheongnam Province : Cheonan FIZ, Inju FIZ, Cheonan5 FIZ, Songsan2 FIZ, Songsan2-1 FIZ
  • Daejeon Metropolitan City : Daejeon FIZ
  • Jeollabuk Province : Iksan Parts FIZ, National Food FIZ
  • Jeollanam Province : Daebul FIZ, Gwangyang Sepung General Industrial Complex
  • Gwangju Metropolitan City : Woljeon FIZ
  • Gyeongsangbuk Province : Gumi FIZ, Gumi Parts FIZ, Pohang Parts FIZ
  • Gyeongsangnam Province : Sacheon FIZ, Changwon Parts FIZ
  • Daegu Metropolitan City : Dalseong FIZ
  • Busan Metropolitan City : Jisa FIZ, Mieum Parts General Industrial Complex
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※ Refer to Major business ▶ FIZ Operation page at Korea Industrial Complex Corporation website (www.kicox.or.kr )

Rent in Foreign Investment Zones

As of end-December 2020
Rental Fees of Complex-type Foreign Investment Zones by Region : Complex,Monthly Rental (KRW/m2 per month)
Complex Monthly
Rent (KRW/㎡)
Complex Monthly
Rent (KRW/㎡)
Complex Monthly
Rent (KRW/㎡)
Cheonan
(Chungnam)
320 Dalseong
(Daegu)
241 Munmak
(Gangwon)
249
Daebul
(Jeonnam)
74 Gumi Parts
(Gyeongbuk)
155 Jincheon Sansu
(Chungbuk)
144
Sacheon
(Gyeongnam)
234 Oseong
(Gyeonggi)
323 Songsan 2
(Chungnam)
290
Gumi
(Gyeongbuk)
171 Pohang Parts 127 National Food
(Jeonbuk)
122
Ochang
(Chungbuk)
227 Iksan Parts 103 Chungju
(Chungbuk)
160
Jangan 1
(Gyeonggi)
262 Changwon
Nammun Parts
451 Songsan 2-1
(Chungnam)
290
Inju
(Chungnam)
165 Miuem Parts 470 Gwangyang
Sepung
(Jeonnam)
248
Dangdong
(Gyeonggi)
383 Cheonan 5
(Chungnam)
207 Songsan 2-2 290
Jisa (Busan) 446 Wouljeon
(Gwangju)
(first)214 /
(second)250
Daejeon 374
Jangan 2 (Gyeonggi) 303