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South Korea
Date: 2015-7-16 17:34:16

South Korea Foreign Directly Investment--FDI

To attract foreign companies to invest in South Korea , South Korea government had already taken measures , they had already published different types policies to inspire foreign investment .

 

There are three types :

South Korea Foreign Directly Investment--FDI

South Korea Free Economic Zone-FEZ

South Korea Free Trade Zone --FTZ

 

South Korea Foreign Directly Investment--FDI , the deatils as follows:

Tax Support for Foreign-Invested Companies

For foreign investment that meets a set of qualifications, corporate and income tax on business income, dividend income, payment for technology introduction, earned income and customs duties on capital goods are exempted or reduced in accordance with the Restriction of Special Taxation Act. Acquisition tax, registration tax and property tax on properties acquired or held for the operation of the business are exempted or reduced under local government ordinances mandated by the Restriction of Special Taxation Act.

 

Cash Grant for Foreign-Invested Companies
In cases where foreign investment satisfies certain conditions, the central and local governments of Korea provide cash grants for the construction of a new factory and more. In the process, the Korean government takes into account whether the relevant foreign investment accompanies high technology, technology transfer effects, job creation, whether the foreign investment overlaps with domestic investment, the propriety of the location in which the foreign investment is made, etc.

 

Site Location Support
Korea provides a variety ofvarious support forto foreign investment executed in industrial complexes, which are designated and developed strategically for industrial development. Also, foreign investment zones, free trade zones, and free economic zones in Korea offer favorable investment environments for favorable to foreign investors. 

 

 

Tax Reduction Cash Grant

– Corporate tax, income tax:
100% reduction for 5 yrs, 50% reduction for the next 2 yrs
– Acquisition tax, registration tax, property tax: 5-15 yrs 100% or 50% reduction
– Tariff for capital goods: 100% reduction for 5 yrs  


Qualifications
– Status of high-tech industry
– FIZ (Foreign Investment Zone)
– FEZ (Free Economic Zone)

-To finance the construction of facilities or the purchase of equipment related to the investment  


Qualifications
– More than 30% of foreign investor’s stock rate
– Manufacturing business with parts & material specialty or high-tech status
– R&D center

Location Support Others
– Reduction or exemption of rent
– Support for building infrastructure  
Qualifications
– More than 30% of foreign investor’s stock rate
– Subsidies for employment and training
– Support for improving management and other environments

 

 

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