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Designating the Foreign Investment Zone

Designating the Foreign Investment Zone

- Foreign investment zones are areas designated and declared by mayors or provincial governors to facilitate foreign investment
in accordance with the Foreign Investment Promotion Act
- Foreign investment zones operated by the Seoul Metropolitan Government are classified into service-type and individual- type zones.
Each type has different requirements, types of resident businesses, and incentives for investment.

Individual-type
  • Areas designated through deliberation where the foreign investors choose to attract large-scale investment over a certain scale
Eligibility
Eligibility
Manufacturing industry USD 30 million and more
New growth engine industry
Knowledge service industry
(computer programming, system integration and management industries)
Information service industry (data processing, hosting and relevant industries)
Tourism USD 20 million and more
Industrial support service industry (excluding logistics)
International conference facilities
Theatres, sports industry promotion facilities, museums, and art museums
Complex logistics terminal business USD 20 million and more
Creating joint collection and delivery centers
Social infrastructure development projects
Industrial support service industry or R&D facilities to conduct businesses equipped with advanced technologies

※ Facilities with ten or more regular employees consisting of dedicated researchers with a master’s degree or higher in relevant fields and three years of research experience or more

USD 2 million and more
Requirements
  • Newly installing or expanding a factory or a place of business while attracting more than a certain amount of investment into an industry
Details
  • Rental fee : Up to 100 percent exemption in the case of public property
  • Exempting acquisition tax and property tax
    • For 10 years from the date of the commencement of business : 100 percent of the amount of tax subject to cuts
    • For the following five years : 50 percent of the amount of tax subject to cuts
      ※ The amount of tax subject to cuts = tax amount on property x foreign investment ratio
  • Exempting tariffs, individual consumption tax, and value-added tax
  • Exempting these taxes in accordance with the Restriction of Special Local Taxation Act in the case of capital goods imported in response to the investment declaration by foreigners upon acquiring newly-issued stocks among the below-mentioned capital goods ① and ② required for businesses eligible for tax cuts or exemption
    • ① Capital goods that foreign investment companies imported as instruments of foreign payment or domestic payment means funded by foreign investors
    • ② Capital goods that foreign investors import for the purpose of investment
Current status of Individual-type foreign investment zones designated by SMG
Current status of Individual-type foreign investment zones designated by SMG
Location Dimension Company Date of initial designation
15, World Cup buk-ro 58-gil,
Mapo-gu
26,278.3㎡ Stanford Hotel Korea Ltd. May 2007