Investment Incentives in South Korea
South Korea: Investing
Incentives or guarantees
- Forms of Aid
Tax Abatement, Exemption of Customs, Cash Grant, Location Incentive, Other supports (Renting).
Click here for more info.
- Privileged Domains
- Industry support service, High-tech industry business, R&D service, Manufacturing, Tourist service, Welfare facilities, etc.
- Privileged geographical sectors
Industrial complex located close to a port or an airport, making it convenient for the businesses within it to engage in foreign trade, International airport area, Distribution complex or cargo terminals, etc.
Each local government is suggesting its own projects of development by giving investment incentives like tax reduction ,etc. to foreign investors including Jeju Special Self-Government province, Incheon, Busan -Jinhae, Ulsan, Gwangyagng, etc.
- Privileged Geographical Zones
Busan-Jinhae Free Economic Zone (BJFEZ),
Gwangyang Free Economic Zone (GFEZ),
Incheon Free Economic Zone (IFEZ)
- Country Risk
Tax incentives offered to foreign investors
- Special tax treatments
There is a number of tax incentives in Korea - provided under the special tax treatment control law (STTCL) - related to SME’s business performance, international capital movement, investment promotion, business restructuring and public business promotion and foreigners’ investment. Tax incentives in the new regime are aimed at promoting foreign investments which utilise highly advanced technology or industry-supporting service businesses to improve the international competitiveness of Korean industries.
Theses special tax incentives include 100% income tax exemption for foreign-owned companies for three to five years depending upon the investments and businesses entered into. Any dividends paid to foreign investors are exempted from tax for the same time periods and rates. Capital goods imported as an equity investment in a foreign-owned company will be exempted from import customs duty, where certain conditions are met for three years from the commencement of its business.
- Useful Links
Korea Trade Investment Promotion Agency (KOTRA)
Office of the Investment Ombudsman (OIO)
Invest Korea Plaza
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