Incentive

  • Domestic company benefits
    • 1. Corporate tax and income tax
      (reduction/exemption)
      for 4 years,
      100
      after 2 years,
      50
    • 2. Acquisition tax
      (reduction/exemption)
      until the end of 2022
      75
    • 3. Property tax
      (reduction or exemption)
      for 5 years,
      35
  • Foreigner-investing company benefits
    • 1. Tariff
      (exemption)
      for 5 years,
      100
    • 2. Acquisition tax
      (reduction)
      for 7 years,
      85
      after 3 years,
      50
    • 3. Property tax
      (reduction or exemption)
      PT for 15 years,
      85
      SH for 10 years,
      75
      after 5 years,
      50

Tax Support

It is classified as a table on tax support, providing contents such as domestic companies (in-industrial complex, outside-industrial complex), foreigner-investing companies (in-industrial complex, outside-industrial complex), etc.
Category Domestic companies Foreigner-investing companies
Within the Industrial Complex Outside the Industrial Complex In & Out the Industrial Complex
Ground
  • • Act on Industrial Location and Development
      (abbreviation: Industrial Location Act)
 • Special Act on Designation and Operation of Free Economic Zones
  (abbreviation: Free Economic Zone Act)
• Act on Industrial Location and Development (abbreviation: Industrial Location Act)
Contract
  • • Announcement for sale
    • In case of competition, it will be decided according to the priority during the occupancy deliberation stage
  • • Private contract allowed
    • ※ No pre-sale notice required
Tenant Qualifications
  • • Not applicable
  • • Registered as a foreigner-investing company
  • • Investment amount of 100 million won or more per foreigner
  • • At least 10% of the total number of stocks with voting rights or total investment
Tax Reduction National Tax Corporate Tax Income Tax
  • • SMEs moving out of the metropolitan area overcrowding control area
      (When moving from overcrowding control area → growth management area)
    • 100% for 4 years, 50% for 2 years thereafter
        (Article 63 Paragraph 1 of the Restriction of Special Taxation Act)
 • Not applicable
Customs
  • Not applicable
  • • 100% for imported capital goods for 5 years from the date of foreign investment declaration
Local tax Acquisition tax (province)
Property tax (city and county)
    Application of the Restriction of Special Local Taxation Act
  • (Industrial complex: applicable to both domestic and foreign companies)
    <Acquisition tax> 75% until the end of 2022
  •   (Required to apply 20% tax reduction of special agricultural tax from the reduced tax amount)
  • • 50% reduction in acquisition tax + 25% reduction in Gyeonggi Province
    ※ Until December 31, 2022
  • Article 78 of the Restriction of Special Local Taxation Act
       (Reduction or exemption for industrial complexes, etc.)
  • Gyeonggi Province Provincial Tax Reduction or Exemption Ordinance Article 8
       (Reduction or exemption for industrial complexes, etc.)
    <Property tax>35% reduction for 5 years
  • • Metropolitan area (Gyeonggi-do): 35% reduction for 5 years
      (Non-metropolitan area: 75% reduction for 5 years)
  • Article 78 of the Restriction of Special Local Taxation Act
       (Reduction or exemption for industrial complexes, etc.)
 Not applicable
    Application of the Restriction of Special Local Taxation Act
  • (Free Economic Zone: Applied to foreigner-investing companies (applied as much as the foreign investment ratio))
  • ※ Notification of tax reduction or exemption decision from Ministry of Finance must be attached (local tax)
  • ※ In case of registration: Exemption by the foreign investment ratio of the foreign company registration certificate
    <Acquisition tax> 85% for 7 years + 50% for 3 years
  • • reduction for 7 years from the date of business start + 50% exemption for 3 years from the date of business start
  • Gyeonggi Province Provincial Tax Reduction Ordinance Article 16 (Reduction or Exemption for Foreign Investment Attraction Support)
  • Article 20 of Gyeonggi Province Provincial Tax Reduction Ordinance (Restrictions on Special Cases for Local Tax Reduction or Exemption)
  • Article 78-3 of the Restriction of Special Local Taxation Act (Tax reduction or exemption for foreign investment)
  • Article 177-2 of Special Local Tax Restriction Act (Restriction on Special Cases for Local Tax Reduction or Exemption)
    <Property tax> Pyeongtaek City 85% for 15 years, Pyeongtaek City, 85% for 10 years in Siheung City + 50% reduction for 5 years
  • • 85% for 15 years from the date of business start 85% in Pyeongtaek City,
      85% for 10 years in Siheung City + 50% reduction for 5 years
  • Article 6 of Pyeongtaek City Tax Reduction Ordinance (Reduction of property tax for foreign investment)
  • Article 6 of Siheung City Tax Reduction Ordinance (Reduction or Exemption for support for Foreign Investment Attraction)
  • Article 78-3 of the Restriction of Special Local Taxation Act (Reduction or Exemption for Foreign Investment)
  • Article 177-2 of Restriction of Special Local Tax Restriction Act (Restriction on Special Cases for Local Tax Reduction or Exemption)
    <Reduction/Exemption Investment Requirements>
  • • Manufacturing: More than $10 million
  • • Tourism: More than $10 million
  • • Logistics business: $5 million or more ※ Complex logistics terminal, joint collection and delivery operation business
  • • R&D for new growth engines: over 1 million dollars

Location support
(planned site for foreign military units)

Provide rental, sale, etc. information as a table on location support.
Lease Available for lease within 50 years for about national and public land
Rent reduction is the amount calculated by multiplying the land value by a rate of 10/1,000 or more
For Sale (National and public property) Sale at construction cost, possible through private contract

Cash Support

It provides information on classification and main contents as a table on cash support.
Category Main contents
Target Support through negotiations for foreigner-investing companies with a foreign investment ratio of 30% or more
When investing in new technologies, large-scale job creation, R&D centers, etc., fund support within the limit of 30% (R&D 40%) of the investment amount
Support Contents Support for factory facility installation cost, dog equipment installation cost, employment subsidy, education and training subsidy, etc.

Other Support

It provides information on classification and main contents as a table on other support.
Category Main Contents
Exclusion of application of the Metropolitan Area refinement Planning Act For resident foreigner-investing companies, exemptions of the Articles 7 (Restrictions on Activities in Overcrowding Control Zones), Articles 8 (Restrictions on Activities in Growth Management Zones), Article 12 (Imposition and Collection of Overcrowding Charges), Article 18 (Population Concentration) and Article 19 (Regulation on large-scale development projects) of the Seoul Metropolitan Area refinement Planning Act
Relaxation of Labor Regulations Exclusion of compulsory employment such as the employment of disabled, exclusion of restrictions on the period and target work of dispatched workers, the permission of unpaid leave, etc.
Forex Trading Freedom The consideration for current transactions can be directly paid in foreign currency (under $20,000)
Administrative Procedure Support Agenda for the establishment of various plans, agenda for various licenses, etc.