Servicetype Foreign Investment Zones
- Location Support
- Foreign Investment Zones
- Servicetype Foreign Investment Zones
- Foreign Investment Zones
- Complex type Foreign Investment Zone
- Individual type Foreign Investment Zones
- Service type Foreign Investment Zones
Procedure of Designation
The Minister of Trade, Industry and Energy submits the mayor and provincial governor's designation plan to the Foreign Investment Working Committee by reviewing whether it is suitable for the designation requirements. The mayor or the provincial governor shall attach a review report that comprehensively considers the feasibility of attracting foreign investment, the effect of regional development, the effect of increasing employment, etc., while the effect of providing financial support when submitting a plan to designate new or extended foreign investment areas as a service within the region.
Requirements for Designation
The land or building to be designated should be available for immediate occupancy and the foreign-invested company's occupancy demand for which foreign investment notification was completed should be specified. However, a certain area in a national or public property (including buildings) has been designated in advance, companies that completed foreign investment notification must account for at least 30 percent of the designated space.
Type of Businesses Eligible as Tenants
Research and development (Natural science and engineering R&D business), finance and insurance, knowledge service (industrial development business), cultural industry (Framework Act on the Promotion of Cultural Industries), tourism business (Tourism Promotion Act, except for casino business)
A foreign-invested company with an FDI ratio of 30 percent or more shall move into the zone only when registered until the time of the occupancy contract.
Minimum Number of Employees per Industry in service-type FIZ
|Type of business||Minimum number of employees||Criteria for FDI|
|R&D||5 or more researchers||The FDI amount should be equal to or more than the
price of the land or building to be leased.
|Finance and insurance||15 or more researchers|
Where a services-type FIZ is a site for lease, an occupancy contract shall be made for a period not exceeding ten years in total (fifty years for research and development service business); in contrast, where a services-type FIZ is any building for lease, an occupancy contract shall be made for a period not exceeding five years in total, the occupancy contract may be renewed only once for a period not exceeding the former lease period.
Subsidization of Rents for Buildings
The state or a local government may subsidize the rent for buildings in a services-type FIZ. In such cases, the state or a local government may subsidize an amount not exceeding 50 percent of the standard rent, but the standard rent shall not include a rental security deposit.