Contents

Andong International Mask Dance Festival

Investment Incentives

Industrial Site Support

    Industrial Site Support
    Classification Requirement Amount of Reduction Details
    individual-type
    Foreign investment Zone
    USD 30 mil. or more in the case of manufacturing 100%
    Complex-type
    Foreign
    Investment Zone
    Business accopanying high technology investing USD 1 mil. or more 100%
    USD 5 mil. or more in the case of manufacturing (Parts & Materials Complexes)
    Manufacturing businesses investing USD 2.5 mil. or more and employing 200 workers or more
    Manufacturing businesses investing USD 2.5 mil. or more and employing 150 workers or more 90%
    Manufacturing businesses investing USD 2.5 mil. or more and employing 70 workers or more 75%

    * 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
Classification Qualifications Incentives
New Growth Engines & Indigenous-
Tech Business
Technolgies by field that fall into the categories of new growth engines and original technologies; and the establishment and operation of factories to do businesses utilizing related technologiesm naterials and production process.(Min. $2M)
  • Acquisition tax, property tax; 100% for 15 years
  • Customs tariff, Value-added tax, Special consumption tax; 100% for 5 years
Individual-type
Foreign investment Zone
  • Manufacturing : min. $30M
  • Tourism & resort, international convention : min. $20M
  • Logistics : min. $10M
  • R&D centers : min. $2M & min. 10 researchers
Complex-type
Foreign Investment Zone
  • Manufacturing : min. $10M
  • Logistics : min. $5M
  • Acquisition tax, Property tax; 100% for 15 years
  • Customs tariff : 100% for 5 years

Cash Grant

For foreign investments that satisfy certain conditions, the central government and Gyeongsangbuk-do provincial goverment of Korea may provide cash grants for certain purposes such as establishment of a factory facility. In the process, the Korean government takes into account whether the relevant foreign investment involves new growth friver industry technology, the effect of technology transfer, the scale of job creation, whether the foreign investment overlaps with domestic investment, the propriety of the location in which the foreign investment is to be made, etc.
* To be determined by the Foreign Investment Committee considering technology transfer effect or created employment scale, etc

Qualifications

Foreign investment with foreign investment ratio of 30 percents or higher falling under one of the following are eligible for a cash grant:

  • Where a new factory facility is installed of an existing factory facility is expanded (or an business establishment in the case of a non-manufacturing business) for the management of a business accompanying new growth driver industry technology
  • Where a new factory facility is installed or an existing factory facility is expanded for the production of parts and materials stipulated under the Act on Special Measures for the Promotion of Specialized Enterprises, etc. for Materials and Components which satisfy one of the following conditions;
    • Parts and materials that contribute significantly to the high added value of the final product
    • Parts and materials that require advanced technology or core high technology and have a high technology spillover effect or create significant added value
    • Parts and materials that act as the basis of an industry or have high inter-industry linkage effects