Opportunity Development ZonesView Details | Major projects

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Opportunity Development Zones

Date

2025.12.18

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Basic Concept

A zone supported by a package of tax and financial support, regulatory exceptions, and improved living conditions to attract large-scale investments from companies to the regions.

* Article 23 of the Special Act on Local Autonomy and Balanced Regional Development (Designation and Support of Opportunity Development Zones)

Target Areas

Non-metropolitan areas and some parts of the metropolitan area (areas experiencing population decline, border areas)

(Location) Local governments select locations in consultation with investment companies.
* Can include already developed planned sites such as industrial complexes, economic free zones, and enterprise cities, as well as individual locations.
(Area) Multiple zones can be applied for within the regional area limits (metropolitan cities: 4.95㎢, provinces: 6.6㎢).

Designation Procedure

Local governments (mayors/governors) apply in consultation with investment companies. After review and resolution by the Local Era Committee, the Minister of Industry designates the zones.

Designation Requirements

Factors include company demand for settlement, worker living conditions, availability of infrastructure and specialized manpower, and the potential for linked development with the region's key industries.

Support Details

Tax and financial support, living condition improvements, and other packages

① When a company in the metropolitan area sells real estate and relocates to the opportunity zone, capital gains and corporate taxes are deferred until the real estate in the zone is sold.
② Relaxation of post-management requirements, such as eliminating "business type change restrictions" and "mandatory CEO participation" during succession within the zone.
③ When purchasing business real estate or building new factories to relocate to non-metropolitan opportunity zones or start a business within the zone, acquisition and property taxes are reduced.
④ Corporate tax reductions when setting up a new business or starting a company within the zone.
⑤ Additional local investment promotion grants for investments in the zone.

Key Incentives for Opportunity Development Zones

기회발전특구 주요 인센티브 표로 세제혜택, 재정지원, 규제특례 등 행정적·재정적 지원정보 제공
구 분	내 용
❶ Income & Corporate Tax	When a metropolitan company disposes of business property and moves to an opportunity zone, capital gains and corporate taxes are deferred until the property in the zone is sold. Tax reduction for start-ups and newly established businesses (100% for 5 years + 50% for 2 years)
❷ Acquisition & Property Taxes	When a company moves from the metropolitan area to the opportunity zone (non-metropolitan) * 100% acquisition tax reduction (including 50% ordinance), property tax 100% for 5 years + 50% for 5 years (including ordinance). For start-ups in the zone - (Non-metropolitan) 100% acquisition tax reduction (including 50% ordinance), property tax 100% for 5 years + 50% for 5 years (including ordinance). - (Metropolitan) 75% acquisition tax reduction (including 25% ordinance), property tax 100% for 3 years + 50% for 2 years. When expanding or building new factories - (Non-metropolitan) 75% acquisition tax reduction (including 25% ordinance), property tax 75% for 5 years - (Metropolitan) 75% acquisition tax reduction (including 25% ordinance), property tax 35% for 5 years.
❸ Inheritance Tax	Relaxation of post-management requirements for inherited businesses moving to opportunity zones, - ‘ such as eliminating "business type change restrictions" and "mandatory CEO participation." Expansion of inheritance tax exemptions for start-ups and companies moving to the zone (effective when the 2024 tax revision bill is passed). - (Target) Small and medium-sized businesses / mid-sized businesses with sales under 500 billion KRW → all small and medium-sized businesses. - (Limit) Up to 60 billion KRW → no limit.
❹ Interest & Dividend Income Tax	9% separate taxation on private capital invested in opportunity development zone funds for over 10 years.
❺ Capital Gains Tax	Special tax treatment for the transfer of agricultural and rural housing in the opportunity zone.
❻ Local Investment Promotion Subsidies	Additional 5% increase in the local investment promotion subsidy ratio.
❼ Development Charges	Exemption from 100% of development charges.
❽ Regulatory Exceptions	Local governments directly design regulatory exceptions and apply for them. After review and resolution by the Local Era Committee, regulatory exceptions are granted.
❾ Special Housing Supply	Special supply of private housing for employees in the opportunity zone.
❿ Shared Workplace Childcare Facilities	Additional points awarded when selected to install shared workplace childcare facilities.

※ Note: Exemptions for development charges, regulatory exceptions, and special housing supply will apply after the passage of the "Regional Balance Investment Promotion Special Act" by the National Assembly.

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