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Individualtype Foreign Investment Zones

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An individual-type Foreign Investment Zone (FIZ) is a tailored location for large-scale investors and foreign investors can choose and designate the location of the investment zone.

Criteria for Designation

The FIZ shall be designated when new factory facilities (or workplace) are built or newly installed on existing buildings by the same corporation to install factory facilities, machines, facilities, and devices that can be accounted for separately from existing factory facilities, or when buildings that have not been completed are acquired and business activities are conducted after obtaining approval to use the building.

Requirements for Designation

The FIZ shall be designated when factory facilities (or workplace) are newly installed which satisfy the required investment amount.
Guide for Requirements for Designation of Individual type Foreign Investment Zones(Required Investment Amount, Type of Business)
Required Investment Amount Type of Business
At least
USD 30 million
Manufacturing business, new growth engine industrial technology business, computer programming, system integration and management services, data processing, hosting, and other related service activities
At least
USD 20 million
Resort condominium business, tourist business (tourist hotel business, floating tourist hotel business, Korean traditional hotel business), specialized resort business, general resort business, general amusement complex business, international convention facilities, youth training facilities
At least
USD 10 million
Complex logistics terminal business, Joint collection and delivery center, business operating a harbor facility, logistics business operated within a harbor hinterland complex, business operating an airport facility and logistics business operated within an airport zone, project creating revertible facilities
At least
USD 5 million
A research and development facility to engage in industry-supporting service business or business accompanying high technology under the Enforcement Decree of the Restriction of Special Taxation Act The number of regular workers in exclusive charge of research with at least a master's degree related to the business and at least 3 years’ research career must be at least 10 persons
※ Related law: Article 25 of the Foreign Investment Promotion Act

The amount of foreign investment that was executed before application for designation shall be excluded. However, where paid-in foreign investment amount is recognized as used for obtaining designation as a foreign investment zone, such as purchase of real estate in an area where the company is planning to obtain designation as an individual-type foreign investment zone, such amount shall be recognized as foreign investment amount. If two or more foreign investors are designated as individual-type FIZs, they shall enter into contracts with the foreign investors on the implementation and performance obligations of their investment plans on the year of the designation.

Application for Designation

To be designated as an individual-type FIZ, a mayor or provincial governor shall make the designation plan including the following documents and file it to the Minister of Trade, Industry and Energy.

Rent and Limit on Occupancy

The rent for Individual-type FIZ may be reduced by 100 percent if the Foreign Investment Committee decides that it will have a positive effect on the national economy. The maximum area to be occupied shall be not more than the area equal to the value of 50 percent of the foreign investment amount by the tenant company.

Alteration of Designation

If changes are made to investment plans and designated notices after being designated as individual-type FIZs, the designated notice must be changed after deliberation by the Foreign Investment Committee. However, insignificant alterations prescribed separately may be notified through prior consultation with the Minister of Trade, Industry and Energy

Designation plan for an Individual-type Foreign Investment Zone
  • Details of the investment, scale of employment, and business plan of foreign-invested companies to take occupancy in the foreign investment zone
  • Viability of eligible foreign investment
  • Funding plans
  • Plans for supporting major facilities in the foreign investment
  • Managing institutions
  • Development project implementer
  • Plans for land use and major infrastructure
  • Land for the zone, buildings, a detailed list of other things or rights, if any
  • Other matters prescribed by the Foreign Investment Committee
※ Related law: Article 25 (6) 2 of the Enforcement Decree of the Foreign Investment Promotion