JEJU-DO < invest Korea

According to Yonhap News,

The designation of the 'Investment Promotion Districts', which gives benefits including national tax reduction when making a large-scale investment in Jeju, will be given to diverse industries.

Previously, it was mostly large-scale tourism development industry that gets the designation, but it has been gradually expanding to the high-tech industries including the space industry.

According to the Jeju Special Self-governing province, 44 business sites are cuttrently designated as the investment promotion districs in the province.

By industry, 40 are in the tourism and recreatinoal industries, one in the high-tech industry, two in the manufacturing industy, and one is an international school.

The province designated the manufacturing companies such as Mr. Milk and Osulloc as the investment promotion districts in 2022.

The province designated the business site of Contec's "Asian Space Park", which specializes in space ground station service and satellite image, as the investment promotion district in January this year.

It is the first time that manufacturing and high-tech industries have been designated as the investment promotion districts since inaugurated in 2006.

Asian Space Park is where private space company Contec invests KRW 10 billion to create infrastructure for space ground station, and others.

It is a project that constructs 12 buildings including power and communication support facilities and 12 antennas on a 17,546㎡ site in Sangdae-ri, Hallim-eup, Jeju-si.

It will also build facilities for Jeju residents and tourists to experience weightless conditions and what it's like to be an astonaut, and a space museum.

Contec built Asia's first private space ground station in Jeju Yongam Seawater Complex in June 2020 with the initial funds (Seed Money) invested by Jeju-do.

Jeju-do plans to actively engage in investment promotion activities in line with the creation of large-scale sites such as the 2nd High-Tech Science and Technology Complex and Hawon Techno Campus, and provide various support to companies belonging to the investment promotion districts.

The investment promotion district is a system that provides tax benefits for domestic and foreign capital that invests more than USD 20 million (tourism and recreational industries) and USD 5 million (cultural and welfare industries, electricity generation industries, and food manufacturing industries) with a goal of fostering such industries and attracting investment.

If selected as the investment promotion district, a company will be 100% exempted from income tax and corporate tax for three years and 50% for the following two years. In addition, local taxes and others will be reduced, with additional benefits of using national and public property for free.

Previously, the benefits of this system were focused on the tourism and recreation industries such as Jeju Healthcare Town, Jeju Myths and History Park, Grandmer Hotel, Nanta Park Tourist Hotel, Raon The Ma Park, etc.

koss@yna.co.kr

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Source: Yonhap News (February 9, 2024)