Free trade zones are locations designated to attract manufacturing and logistics companies in industrial complexes, airports, ports, distribution complexes, and cargo terminals and create synergic effects by connecting businesses. National and local tax reductions or exemptions are granted depending on the types and sizes of businesses. Tariffs on foreign goods and certain domestic goods imported into the free trade zones are reserved, and a zero-tax rate of value-added tax is applied.

Consequently, companies that intend to export products made with imported foreign raw materials do not have go through complicated refund processes. Long-term leases of land or buildings are available at affordable prices, offering favorable locations to foreign-invested companies that are engaged in manufacturing for the purposes of export, logistics including warehouses, distribution, cargo handling, and packaging, and wholesale for the purpose of export and import transactions. Free trade zones have been established in optimal locations, especially for large-scale foreign-invested companies that concurrently operate manufacturing and logistics businesses.