Main Incentives
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- Main Incentives
Jeollabuk-do provides KRW 30 billion of cash grants to large scale investors.
Requirements
- A company shall sign a memorandum of understanding for the investment deal with the provincial authorities.
- A company that has invested in the provincial district shall hire more than 10 full-time employees.(Provided that the company falls into the industry category of R&D, ICT, carbon business or reshoring company shall hire more than 5 full-time employees.)
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The investments shall exceed KRW 1 billion. (In the event of investments made by a company that falls into the industry category of R&D, ICT, carbon business or reshoring company, the value shall go above KRW 100 million.)
※ Provided that a foreign-invested company that has already made investments in Korea plans to transfer its business, newly set up or build out its production facilities into the district shall comply with the provisions stipulated in the statutory guidelines for the investment incentives applicable to businesses in Korea.
Types of investment incentives
| Types | Rent assistance | Investment incentives | Incentive caps |
|---|---|---|---|
| Investment subsidies |
Business relocation in FIZ
75% reduction in rents (for a company that makes over USD 5 million worth of investments
*100% reduction in rents (for a company whose business involves in high-technology and makes over USD 1 million worth of investments or for a company whose business involves in parts and materials and makes over USD 5 million worth of investments) |
Within 10% of investments that exceed KRW 1 billion |
KRW 8 billion |
|
Large scale investments A company that invests over KRW 100 billion or hires more than 100 full-time workers |
KRW 10 billion | ||
|
Business relocation in property owned or leased by each private entity
Rents or differences between net land value and site value
- Within 50% for normal price of land for sale (within 10 years for lease) |
A company that invests over KRW 200 billion or hires more than 500 full-time workers |
KRW 20 billion | |
| A company that invests over KRW 300 billion or hires more than 1,000 full-time workers | KRW 30 billion | ||
| Employment subsidies | When hiring 20 local residents as full-time employees to work with | KRW 1 million for an extra worker per month for a period of 6 months |
KRW 1 billion |
| HR training subsidies | When hiring 20 local residents as full-time employees to work with |
KRW 500,000 for an extra worker per month for a period of 6 months |
KRW 500 million |
Requirements and benefits for designating a foreign investment zone
| Site support | Parts and materials industrial complex | Free trade zone | Individual-type |
|---|---|---|---|
| Rent free for maximum of 100 years (rent for 50 years and renew for another 50 years) |
Parts and materials: Over USD 5 million | Parts and materials: Over USD 5 million Advanced technology: Over USD 1 million Manufacturing industry: Over USD 5 million -75% reduction |
Manufacturing industry: Over USD 30 million Tourism industry: USD 20 million Logistics industry: USD 30 million |
| Target | Type of Tax | Contents of Support | Area | |
|---|---|---|---|---|
| Foreign investment zone | National tax | Corporate tax (Income tax) |
7 years of reduction (100% exemption for the first 5 year period, 50% reduction for the next 2 year period) | in Gunsan city |
| 50% reduction for 4 years | Gimje Horizon Industrial Complex Jeongeup High-Tech Science Industrial Complex |
|||
| Tariff | Exemption for 5 years | Foreign Investment Zone (FIZ) | ||
| 100% exemption | Free Trade Zone (FTZ) | |||
| Local tax | Acquisition tax Property tax |
100% exemption for 15 years | ||