• Subject
  Businesses accompanying, and in support of, the advanced technology and service sectors are recognized
  as necessary elements in strengthening the international competitiveness of domestic industries. Such
  businesses in GyeonggiProvince satisfy all of the following conditions, and are designated by the Minister of
  Finance and Economy through the Foreign Investment Committee's review.
  Technologies that can have a great economic or technological impact on the national economy are critical for
  evolving the industrial structure of Korea and strengthening its industrial competitive strength.
  These technologies were transferred to Korea less than three years ago. The report on foreign direct
  investment and the report on the agreement of technological transference suggests these recent industries
  have had a greater economic or technological function impact than previously transferred technologies.
  These technologies are used in processes which mostly take place in Korea.
• A number of tax reductions, involving both national and local taxes, are offered.
  
  • National Tax: Over seven years (100% reduction for five years, 50% reduction for two years)
  • Local Tax: 100% reduction for 15 years
• The possibility of reducing or exempting rent in proportion to the investment amount by establishing a Foreign Investment Zone
• Support for the purchase and rental of public properties owned by the local self-governments
  
  • Rent: 1% of land price or higher, 50 - 100% reduction or exemption
  • Purchase: 25 - 100% reduction or exemption, payment in installments (an annual interest rate of 3% is
    applied to the remaining amount of the payment, payment in installments over 20 years or less)
• Companies making large-scale investments will win priority to be established as ®Foreign Investment
  Zones- (foreign investment greater than 30 million dollars)

• GyeonggiProvince expanded the standards for promising small and medium sized foreign companies from
  companies with less than a 50% foreign investment ratio, to all foreign companies since 1999.
• When a company is selected as a promising small or medium sized foreign company, it receives priority
  treatment in access to operating funds, restructuring funds, credit assurances, and other subsidies.
• The company also has access to various data about the industry and technology.

• The Establishment of Foreign Investment Zones
  
  • The Mayor or Premier designates a Foreign Investment Zone through the Foreign Investment Committee review in order to lure foreign investment.
• Standards for Appointment of a Foreign Investment Zone
  
  • Where a foreign company is investing greater than US$30 million and constructing new plant facilities to operate a manufacturing busines
  • Where a foreign company is investing greater than US$20 million and constructing new facilities to operate one of the following businesses
• Tourist Hotel Business, Floating Hotel Business, Comprehensive Resort Business, Comprehensive Amusement Facility Business as specified in the Tourism Promotion Act
• International Conference Facilities as specified in the International Conference Promotion Act
  
  • Where a foreign company is investing greater than US$10 million and constructing new facilities to operate one of the following businesses
• Comprehensive Freight Terminal Business as specified in the Freight Distribution Promotion Act, Distribution Business as specified in the Distribution Industry Development Act, Common Collection and Delivery Terminal Operation Act, Harbor Law, and/or Aviation Act, Facilities Development Business for SOC facilities in compliance with Private Investment Law
  
  • Where a foreign company invests in newly installed or expanded research facilities in order to conduct research and development activities for the industry supporting service business and advanced technology accompanying businesses (all of the following conditions must be satisfied)
• Where foreign investment is US$5 million or higher
• Where the company employs a minimum of ten full-time employees exclusively assigned to research tasks and possess a Master's Degree or higher Degree in a field related to the business, and have at least three years of research experience
• Benefits:Reduction or Exemption of Corporate (Acquisition) Tax: Same conditions apply as to industry supporting service and advanced technology accompanying businesses
• Support for purchasing / renting public properties
  
  • Public properties inside a foreign investment zone may be purchased through private contracts, with rents to be reduced by 50% - 100% over 50 years

• Support for the residential environment, such as medical, educational, and housing facilities, can be provided to tenants of a Foreign Investment Zone.
• GyeonggiProvince provides a variety of conveniences to foreign employees of foreign companies. These include the likes of the introduction of educational institutes, supporting the obtaining and extending of visas, and mediating the purchase of residential property.

• Possible support for the reduction or exemption of tariffs on capital goods, such as foreign capital, facility materials, and equipment purchased as investment for businesses accompanying advanced technology and to the service sector which supports advanced industries
• The tax reduction or exemption is not applied to capital goods purchased as investment for general manufacturing businesses.

• A company operating large-scale investment is designated as a Foreign Investment Zone and will enjoy special benefits, such as support in terms of development costs, business infrastructure, and the reduction or exemption of taxes and expenses.
  This support applies to a company that is investing greater than US$30 million and constructing new plant facilities.
• Support for purchasing / renting public properties
  
  • Rent: 50 - 100% reduction for a company investing a minimum of US$5 million, employing a minimum of 100 people per day on average, or exports a minimum of 50% of its total production output.
  • Rent: 1% of land price
  • Purchase: 25 - 100% reduction or exemption for a company that is willing to become a tenant of the Investment Promotion Zone that the local self-government has developed in order to lure foreign investment, is investing a minimum of US%500 million, and is employing a minimum of 300 new employees.
  • Payment in Installments for Purchase: Where a company is purchasing public property in order to construct new plant facilities, the company may make payments in installments at 3% annual interest for up to 20 years.

• 50 - 100% reduction or exemption on public property rent for companies which export a minimum of 50% of their total production output, and a 25 - 50% reduction or exemption on the purchase of public property.

• Mediates business partners and provides a variety of administrative services involved with starting a joint venture company, such as assistance through investment procedures.
• Support for Language (Translation, Interpretation) and the Preparation of Joint Agreements
• Searches for appropriate domestic companies for joint venture operations and provides support, such as a reduction or exemption of taxes
• For businesses accompanying advanced technology and services supporting advanced industries, this scheme reduces or exempts taxes according to the investment ratio.
• The general manufacturing business sector may be designated as a Foreign Investment Zone according to the investment scale, and will become eligible for various measures of support, including a reduction or exemption of tax, rent or purchase of public property, development cost, infrastructure cost, and other necessary expenses.

• GyeonggiProvince reduces or exempts the rent of public properties by 50 - 100% in compliance with provincial regulations where a company expands or moves in from another province to GyeonggiProvince.

• Exemption on corporate tax and income tax relating to royalty concerned with the introduction and provision of technology in the high technology accompanying business sector for five years from the first payment of the technology allowance.
• Exemption on income tax for five years for foreign workers dispatched to Korea in compliance with the Technology Transference Agreement.

• Exemption, reduction, or support for land purchased or rented for the purposes of the installation of plant or research facilities
• Construction Costs for Plant or Research Facilities
• Purchase of capital goods and research equipment and materials to be used for business or research purposes at plant or research facilities
• Costs of installation of infrastructure, such as electricity and communications facilities, required for new construction of plant or research facilities
• Payment of Employment Subsidies and Education and Training Subsidies

• Restrictions on various business activities have been abolished according to the Act on the Exit & Entry and Legal Status of Overseas Koreans as announced by the government on September 2, 1999.
• Overseas Koreans are now treated as Koreans in Korea, and may trade real estate freely and receive social welfare benefits.

• Subject: 34 SOC projects, including railroads, highways, and harbors, as specified in the Private Investment Law
• Reduction or exemption of tax and applicable expenses
  Reduction or exemption of acquisition tax, registration tax, and value added tax in compliance with the Special Tax Treatment Control Law and local tax laws
• Financial Support for Government-Vested Facilities
  Provides subsidies or leases equipment to a company in order to maintain rent at an appropriate level and support the smooth implementation of the project during the construction or operating period
• Concerning Exchange Risks
  Where a foreign exchange loss is incurred due to fluctuations in the exchange rate over a fixed level in the act of gaining a foreign loan for construction expenses (excluding operating funds) that the company supplies with 3rd party capital, any such losses may be redeemed through rental adjustments. This support is provided by the central or local government.
• Request for Purchase and Cancellation of Agreement
  Where a business operator of government-vested facilities becomes unable to continue the construction or the management of the SOC facilities due to unavoidable circumstances, such as natural disaster, the business operator may request the central or local self-government to purchase the corresponding project (including any incidental projects).

• Since the full opening of the real estate market in Korea in April 1998, foreigners or foreign corporations are treated equally in the real estate market. Free trade in the real estate market may be undertaken securely.
• Exemption of acquisition tax and registration tax for 15 years concerning the businesses whose reduction or exemption in tax is approved by the Minister of Finance and Economy.
• GyeonggiProvince supports civil affairs, as well as the permission and authorization processes related to real estate trade.

• Reduced or exempted taxes and/or tariffs where a business falls under the category of a Business Accompanying Advanced Technology.
• Exemption of charges for a company constructing a large-scale plant (a minimum of US$500 million) and a 25 - 50% reduction on charges for businesses accompanying advanced technology or venture companies investing US$3 - 5 million.
• Support for small and medium sized foreign companies with the production facilities fund, operating fund, and R&D fund of up to KRW1 - 3 billion at the low annual interest rate of 3.58% - 5.6%

• Support for the collection and provision of data or information, and mediation for consultation, on the request of a foreign investor or a foreign investment firm.
• Provision of advice regarding support for foreign investments.
• Support in business and civil affairs in relation to foreign investments.
• Support for the settlement of the livelihood of a foreign investor or employees and their families of a foreign investment firm in areas such as housing rentals and school admissions
• Other foreign investment related tasks

• Where a foreign company operates a manufacturing business that exports a minimum of 50% of the total production output, and purchases a minimum of 50% of its raw and subsidiary materials from Korea, the rent for public properties may be reduced by 50 to 100%, and the selling price of public properties, by 50%.