Opening of Overseas Direct Investment and Protecting Industrial Activities
- Republic of Korea is making constant efforts for the opening of overseas direct investments and most industries are now in the open status (the current market opening rate is 98.9%).
- Overseas investors or enterprises and domestic ones are equally treated for their business activities unless special regulations are prescribed.
- Targets for Benefits
Advanced Technology-Based Industry
Industrial support services essential for international competitiveness of domestic industries
Overseas investors industries that occupied overseas investing areas
Other industries for which tax exemptions are inevitable to secure overseas investments.
Benefit application form submitted ⇒ Ministry of Finance and Economy (consultation with chairman of the local assembly, an application is decided within 20 days) ⇒ Outcomes notified
Contents of Benefits
100% exemption for corporation tax, income tax for 7 years, 50% reduction for the next 3 years 100% exemption for acquisition tax, registration tax, intergrated land tax for 7 years, 50% reduction for the next 3 years
National or public property lease and sales incentives
- Public properties [lease]
Lease term: 50 years (when the term is expired, another 50-year term can be renewed only once). Lease Fee Reduction 100% Reduction: Overseas investors industries that occupied overseas investment areas, overseas industry complexes, advanced technology operating business of more than US $1 million 75% Reduction: overseas industry complex, enterprises contributing to manufactures SOC expansion of more than US $10 million, restructuring, financial independence of local government, etc. 50% Reduction: Overseas investment enterprises in domestic industrial complex
- Reduction of diversion use cost
When overseas investment enterprises divert agricultural land or wild fields into establishing plants, diversion cost is reducted. (Reduction rates are proportional to the rates of overseas investment)
- Administrative Support
Special Support Team for overseas investment has been established to provide overseas investors or enterprises with one-stop services.
- Address : (360-700) Sangdang-Ro 155, Sangdang-Gu, Cheongju City, Chungcheong Bukdo Province, Republic of Korea
- Tel/Fax (Investment Promotion Division, Economy & Investement Office, City of Cheongju)
- Tel : +82-43-201-1412~3
- Fax : +82-43-201-1449