| |
 Rationale
| |
Rationale
for extending support
for foreign investment
is derived from applicable
provisions in other
laws and regulations
pertaining to foreign
investment.
 |
Applicable
laws &
regulations |
| |
- The
Act on
Designation
&
Operation
of the
Free Economic
Zone
- The
Act on
Designation
of Free
Trade
Zone
- The
Act on
Foreign
Investment
Promotion
- The
Act on
Tax Relief
Restriction
- Local
government
ordinances
pertaining
to promotion
of foreign
investment
- Local
government
ordinances
pertaining
to management
of shared
properties |
|
Scope of
Support
| |
|
Tax Deduction
&
Relief,
etc. |
| |
- National
tax :
Customs,
corporate
income
tax, personal
income
tax
- Local
tax :
Acquisition
tax, property
tax, registration
tax
- Subsidy
in cash
: from
central
or local
governments
- Sales
of national/public
properties(by
negotiated
contract
and sales
price
payment
in install- ment,
etc.),
discount
on rent
- Location
subsidy,
recruitment
subsidy,
training
subsidy,
facility
subsidy
and land
acquisition
subsidy,
etc. |
|
Waiver
on other
statutory
obligations |
| |
- Waiver
on recruitment
privileges
applicable
to patriots,
war veterans
of the
physically
- challenged
- Waiver
on restrictions
on entry
by big
corporations
into SME-protected
industries
- Waiver
on restrictions
on commercial
activities
or urban
congestion
liabilities
as defined
in the
Capital
Region
Readjustment
Planning
Act
- Waiver
on paid
leave
or paid
menstruation
leave
requirements
- Extension
of national/public
property
lease
arrangement
or endorsement
of permanent
facility
construction |
|
Tax incentives apply to investments made under the following
conditions
|
|
| |
Logistics (US $5 million and more)
Tourism (US $10 million and more)
Manufacturing (US $10 million and more)
Master developers
(US $30 million or more or joint venture projects
totaling more than US $500 million with over 50%
being of foreign investment) |
| |
| Tax Breaks |
| National
Tax |
Tariff |
100% for 3 years |
Corporate Tax
Income Tax |
100% for 3 years,
50% for the following 2 years |
| Local
tax |
Acquisition Tax
Registration Tax |
100% for 15 years |
Property Tax
|
100% for 7 years,
50% for the following 3 years |
| Rental
Fee Reductions |
| Central
Govt.-Run Properties |
Through negotiation
with the Authority |
| Public-Sector
Owned Properties |
100% Exemption |
Investment of
US $20 million or more |
| 75% Reduction |
Investment of
US $10 million or more |
| 50% Reduction |
Investment of
US $5 million or more |
※Tax incentives go into effect three years after
reporting a profit. |
| |
Industrial Support Services / High-Tech Businesses |
| |
| Tax Breaks |
| National
Tax |
Tariff
Value Added Tax
Special Excise Duties |
100% for 3 years |
Corporate Tax
Income Tax |
100% for 5 years,
50% for the following 2 years |
| Local
tax |
Acquisition Tax
Registration Tax |
100% for 15 years |
Property Tax
|
100% for 7 years,
50% for the following 3 years |
| Rental
Fee Reductions |
| Central
Govt.-Run Properties |
Through negotiation
with the Authority |
| Public-Sector
Owned Properties |
100% Exemption |
Investment of
US $20 million or more |
| 75% Reduction |
Investment of
US $10 million or more |
| 50% Reduction |
Investment of
US $5 million or more |
|
| |
| ※ |
Subsidy Support
The cash grant amount for renting or purchasing
land, training employees and funding of facilities
depends on the company size, industry type
and investment amount. |
|
| |
| |
♣ Improved Financial
Environment
- The allowance of direct payments made within
the range of US $10,000 |
| |
| ♣
Labor & Management Flexibility |
- Exemption of monthly
paid holiday
- Exemption of mandatory employment
quota for veterans, the elderly or the
handicapped
- Expanding business scope and period
of dispatching employees following discussion
with and a decision made by the
Free Economic Zone Committee
- Large enterprises are exempted from
Korean law which prohibits them from
engaging in business activities designated
only
for SMEs
|
|
|
|
