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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.