Contents

Andong International Mask Dance Festival

Support Systems for Small & Mid-sized Enterprises

Site Location Support

  • Supported Qualification: A company whose Foreign Direct Investment(FDI) ratio is over 30% or whose majority shareholder is foreign investor
  • Support information (up to 50 years)
    Site Location Support
    Location Eligibility(FDI) Amount of Reduction
    Complex-type foreign investment zones Industry support services and high technology Business (more than 1 USD), parts and materials (USD 5 million or more) 100%
    Manufacture business (USD 5 million dollar or more) 75%
    Individual foreign investment zones Manufacture business (USD 30 million or more), Tourism (USD 20 million or more), Logistics (USD 10 million or more), R & D (USD 2 million or more) 100%
    Industrial complexes (national, general, agro-industrial complex, etc.) Industry support services and high technology business (more than USD 1 million) or Manufacture business (USD 5 million or more) 50%

    * Foreign Investment Zones: Designated to attract foreign investment

    • Complex-type foreign investment zones: Complex-type foreign investment zones refer to areas of national or general industrial complexes that are designated for lease or sale. This type of foreign investment zones are designed to attract small and medium-sized foreign-invested companies, and are practically leased to foreign-invested companies.
    • Individual foreign investment zones: Individual foreign investment zones are designated as units of foreign-invested companies' establishment. The region, timing, and incentives preferred by foreign investors are generally reflected in the designation. This type of foreign investment zones are aimed to attract investment from large foreign-invested companies.
      • Eligibility(FDI) : Manufacturing(more than USD 30 million), tourism industry(more than USD 20 million), logistics(more than USD 10 million), R & D (more than USD 2 million)

Tax Support

Tax Support
Type Eligibility(FDI) Reduction content Remarks
Corporate Tax (Income Tax) Industry support services and high technology business Individual Foreign Investment Zone 100% for 5 years and 50% for 2 years afterwards The reduction limit is determined based on accumulated foreign investment and no. of employees
Complex-type Foreign Investment Zones (manufacturing more than USD 10 million, logistics USD 5 million or more) 100% for 3 years 50% for 2 years afterwards
Local taxes (acquisition tax, property taxes) Industry Support Services and high technology business Individual Foreign Investment Zone Up to 15 years (accordance with province, city and county ordinance)
Complex-type Foreign Investment Zones (manufacturing more than 10 million, logistics 5 million or more)
Tariffs, etc. Industry Support Services and high technology business Individual Foreign Investment Zone Exemption of customs duty, individual consumption tax and VAT for 5 years Counted from the date of investment notification
Complex-type Foreign Investment Zones 5 year exemption of customs duty

Cash Grant

In cases where foreign investment satisfies certain conditions, Gyeongsangbuk-do provides cash grant for the construction of a new factory, etc. In the process, Gyeongsangbuk-do takes into account whether the relevant foreign investment accompanies high technology, the effect of technology transfer, the size of job creation, whether the foreign investment overlaps with domestic investment or the propriety of the location in which the foreign investment is made, etc.

* To be determined by the Foreign Investment Committee considering technology transfer effect or created employment scale, etc.

  • Qualification : 30% or more Foreign Direct Investment(FDI) ratio
  • Details : employment, education and training subsidy, land purchase/lease, construction, basic facilities installation, purchase of capital goods and research equipment etc.