Tax reduction/exemption

Tax reduction/exemption
Eligibility

Content

Applicable tax

Requirements of investment Period of relief
* High technology,
Industrial support service

* Foreign companies
operating in individual foreign investment zone
*National tax
- Corporate tax
- Income tax
*High technology,
Industrial support
service: nil
* companies in
individual foreign
investment zone
-Manufacturing: USD 30 million or more
Seven years
First five years:100%
Remaining two years:50%
* Local tax
- Acquisition tax
- Registration tax
- Property tax
Ten years
First seven years:100%
Remaining three years: 50%
* Customs duties
* Special Excise
* VAT
Capital goods import as part of investment by acquisition of new shares Ten yearsFirst seven years:100%Remaining three years: 50%
* Foreign company
operating in complex foreign investment zone
* National tax
- Corporate tax
- Income tax
* Manufacturing: USD 10 million or more Five years
First three years:100%
Remaining two years:50%
* Local tax
- Acquisition tax
- Registration tax
- Property tax
Ten years
First seven years:100%
Remaining three years: 50%
* Customs duties
* Capital goods import as part of investment by acquisition of new shares Three years: 100%(Import
report must be filed)

Rent support for land or facilities

  • Rent period: 50 years
  • Support details
Zone Requirements  Reduction rate of rental
Individual foreign investment zone Manufacturing company with foreign investment of USD 30 million or more 100%
Complex foreign investment zone High technology business with foreign investment of USD 1 million or more Manufacturing company with foreign investment of USD 5 million or more 100%

  75%

Financial assistance

  • Subsidies for job creation ※Chungbuk: up to 1 billion Korean won by company
    • Qualification: Foreign company employing 20 new people or more within five years of registration of foreign investment
    • Subsidies: 100~500 thousand Korean won by month, up to six months
  • Subsidies for job training ※Chungbuk: up to 1 billion Korean won by company
    • Qualification: Foreign company that employs 20 new people or more and conducts job training program for them within five years of foreign investment
    • Subsidies: 100~500 thousand Korean won by month, up to six months
  • Financial aid for purchase of land: to give financial aid to the foreign company purchasing land

Cash grant

  • Qualifying company: A foreign company with 30% or more foreign investment ratio
  • Specific qualification:
    • Investment of USD 10 million or more, establishment or expansion of plant facilities in high technology or
         industrial support service industry.
    • Investment of USD 10 million or more, foreign investment in the parts/material manufacturing industry
    • Establishment or expansion of research institutions that employ ten or more researchers with master's
         degrees and more than three years of experience in the related field.
  • Applicable cases of cash grant: Rent or land purchase, purchase of capital goods, installation of infrastructure
  • Cash grant level: 5~15% of the invested amount

Administrative supports

  • Project Manager System
    • Officials of central and local governments and staff of Invest KOREA are engaged in full-time service
         from the beginning of each project.
  • One-stop Service: Specialized management system of the Korea Industrial Complex Corp.
    and one-stop permit service of local governments.