Designation of Foreign Investment Zone
Foreign Investment Zones are areas designated and announced by the Governor under the Foreign Investment Promotion Act to attract large-scale foreign investment.
There are complex, individual, and service-type foreign investment zones. Designation requirements, the type of business, and investment incentives depend on regions.
Service type
Areas (including buildings) designated for lease or transfer to foreign-invested companies with high value-added services, such as finance and R&D.
Designation requirements
Support
Rental subsidy : up to 50% of rent
Individual type
To attract large-scale investments, foreigners can select desirable locations. After deliberation, approved areas will be designated for rental subsidy.
Support
100% reduction of public land rent
Local tax reduction for up to 15 years
Status of Foreign Investment Zones in Seoul
Incentives : Cash Grant
Seoul will provide cash for a business that has a significant impact on the domestic economy
Details
∙ Purchase cost or rent of land or building
∙ Construction cost of factories or research facilities
∙ Purchase cost of capital goods and research equipment
∙ Installation cost of infrastructure such as electricity and telecommunication facilities
∙ The amount of support
※ The amount of support money is determined within the investment amount after deliberation by the Foreign Investment Committee.
Incentives : Employment and Training Subsidy
Employment subsidies and training subsidies are paid as to the size of employment and the effects on regional economic development.
Incentive : Tax Reduction
Acquisition and property tax reduction or exemption for foreign-invested companies as Tax Reduction and Exemption Control Act
* The amount of exempted tax comes from the amount of calculated tax for the exempted business multiplied by the ratio of foreign investment.