Shortcut to Body Shortcut to main menu

Investment Projects

  • Home
  • Investment Projects
  • Investment Projects
Donghae Free Trade Zone, Donghae-si
Date
2014.05.26
Views
3942

■ Donghae-si, Gangwon-do

  • Area: 180.2㎢
  • Population: 95,000 (40,000 households)
  • GRDP (2011): KRW 2.153 trillion *7.1% of Gangwon-do's total GRDP (KRW 30 trillion)
  • Regional characteristics: An industrial/logistics city at the center of the Trans-Pacific Zone
    ※ Closed Korean port to the Arctic Seaway, making it one of the best locations for export and import logistics
  • Transportation network:
    - Yeongdong·Donghae Highway (3 hrs from Seoul to Donghae) 7th National Route (7 hrs from Seoul to Busan)
    - Donghae Port (annual volume: 37,072,000 tons) *6 more berths to be completed by 2020, Seaway to Russia and Japan

■ Project Overview

Free Trade Area: Area with various incentives and benefits for foreign investors, such as tax incentives, support facilities, and tariff exemptions.

□ Complex Overview

  • Location: Gongdan-1-ro, Donghae-si, Gangwon-do (Block 8, Bukpyeong Industrial Complex)
  • Area: 247,734㎡
    Type Area(㎡) Rental Fee Lease Period
    Industrial Site Self-owned factory 154,213 26 won/ ㎡ per month Long-term lease (50 years)
    ※ Can be extended further
    Standard Factory 27,708 Heavy Industry Pavilion: 370 won/㎡
    Light Industry Pavilion: 404 won/㎡
    Logistics Site 19,276 26 won/㎡ per month
    Public Facility Site 46,537
  • Dormitory: 1 Pavilion (4 stories, 23 units) (Rent: 22,000 won per month)
  • Types of Business: Electronics, Electricity, IT, Medical devices, hi-tech ceramic material-related companies, non-ferrous metals (magnesium,) parts materials, or other related businesses
Qualification Requirements for Tenants Description
Korean company Manufacturing industry for export Company whose export accounted for 50% or more for 1 year or more within the past 3 years prior to the application for tenancy (5% in case of a knowledge-based service company).
Wholesale business whose primary business activity involves export and import transactions
Knowledge-based service company
Foreign Investment Enterprises Manufacturing or knowledge-based service Capital investment should be KRW 100,000,000 per entity, and foreign share should account for 10% or more of the local entity.

□ Bird's Eye View of the Donghae Free Trade Zone

■ Incentives

  • Rental Free: Rent-free lease for land used by a company that satisfies any of the following requirements (for 10 years):
    ① Newly established foreign investment enterprises with capital investment of USD 10 mil. or more by foreign investors
    ② Newly established foreign investment enterprises with capital investment of USD 1 mil. or more, and with businesses involving hi-tech or advanced technology
    ※ Land used by other tenants: 34 won (㎡/month)
  • Tax Incentive
Item Beneficiary Description
Tax incentive Foreign investment amount
(USD 10 mil. or more, manufacturing)
- Corporate Tax: Tax reduction by 100% for 3 years and 50% for 2 more years
- Property tax - 100% tax exemption for 10 years and 50% for another 5 years
- Acquisition/Registration tax exemption
Export-centered companies - Corporate Tax/Income Tax reduction: 50% until Mar. 20, 2015
- Property Tax reduction: 100% for 5 years
- Acquisition/Registration tax exemption
Special benefits for customs duty All tenants - No tariffs for imported goods
- Exemptions or refund of domestic goods at the port of importation declaration
No value-added tax All tenants - Domestic goods declared for import
- Overseas goods and services transaction between tenants

Advantages for Investment

  • Optimal SOC infra including centerpiece airport for the Trans-Pacific Zone, ports, and highways
  • Leased land for competitive rent, combination of manufacturing, logistics, and distribution functions, as well as One-stop Service by the administration agency, enabling the tenants to launch businesses immediately after they move in (Advantageous for small-scale investments)

□ Business Infrastructure

ㆍHuman resources: 24,700 students from 5 colleges, plus 15,700 high school students from 27 high schools in the Yeongdong region
ㆍInfrastructure: 20,000 tons/day of industrial water (400 won/ton,), Wastewater treatment facility with capacity of 6,500 tons/day Competitive electricity charge (voltage maintenance rate of 99.93% (No. 1 in the world))
ㆍLeading enterprises: LS C&S, Dongbu Metal, Ssangyong Cement, etc.

□ Donghae Rim Economic Zone

ㆍGangwondo Global Business Department: T.+82-33-249-2082
ㆍDonghae-si Investment Support Team: T.+82-33-530-2171
ㆍDonghae Free Trade Area Administration Office, Ministry of Industry: T.+82-33-522-6113 / www.ftz.go.kr/donghae