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 Incentives for Foreign Investors |
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Investment enterprises that meet the designated conditions for establishment within this exclusive foreign enterprise district and invest more than $1,000,000 US in the management of industrial support services, high technology industries, or other enterprises in the foreign investment zone will be 100% exempt from paying rent. Those which invest over $5,000,000 US in the manufacturing industries will receive a 75% rent reduction. The rental period is fifty years and rental agreements can be renewed within the fifty year time frame.
Designated conditions for establishing enterprises within the foreign investment district:
- Common manufacturing industries, high-tech industries, and industrial support services which invest more than $30,000,000 US
- Tourism industries which invest more than $20,000,000 US
- Physical distribution industries which invest more than $10,000,000 US
- R & D facilities which invest more than $5,000,000 US, and employ more than 10 researchers with a Master's degree or higher |
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For production and services in high tech industries, industrial support services and foreign investors:
- A 100% exemption from the National Tax (Corporation Tax and Income Tax) and Local Tax for the first seven years after establishment.
- A 50% reduction of the National Tax and Local Tax for the next three years.
- From 2005, the reduction period will be reduced to a 100% reduction for the National Tax for the first five years and a 50% reduction for next two years.
- Exemptions from customs duties, special consumption tax, and VAT on capital goods for tax-reduction eligible industries (limited to importations completed within three years after the declaration of the foreign investment).
- A 17% single income tariff of the total allowance will be applied to foreign officers and staff, so that their income taxes will be reduced. |
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| Foreign investors who invest more than $10,000,000 US in high technology industries. industrial support service, parts and materials corporations, and those which invest more than $5,000,000 US in R & D activities will be eligible for a designated percentage of their cash investment (such like building costs). |
| In cases where more than a designated number of local people are employed, the foreign investment industries may be subsidized to an extent equal to domestic industries involved in education and training, employment, and small and medium enterprise support industries. |
International Affairs and Trade Division,
70 Hyangchongil (1420 Dunsan-dong), Seo-Gu 302-789, Daejeon, Republic of Korea
www.daejeon.go.kr
Phone: 82-42-600-3681 Fax: 82-42-222-0262 |
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Invest Daejeon
Techno Valley
