Reduction of direct taxation

– For foreign-invested companies in the high-technology and industry-supporting sector;
– For foreign-invested companies in the manufacturing sector with a foreign investment of
over US$10 million;
– For foreign-invested companies in the logistics sector with a foreign investment of over
US$ 5 million.

For national tax (corporate tax and income tax) and local tax (acquisition tax, registration tax, comprehensive land tax): 100% exemption for three years, 50% reduction for two years.

Indirect taxes

– Customs for foreign goods carried in and out of the FTZ are reserved;
– Zero percent value-added tax is applied to internal trade (within the companies in the
FTZ) and for Korean goods carried into the FTZ;
– Reservation for the following taxes: temporary import surtax, liquor tax, special excise
tax, traffic tax, special tax for rural development, education tax.

Excluded are exemption for traffic violations and the application of the Act on the Honorable Treatment of Persons of Distinguished Services to Independence.

Incentives for lease

– Exceptionally cheap lease price expected (one-fifth of the lease price in other regions);
– Maximum 100% reduction of lease for foreign-invested companies;
– Up to 50 years lease possible for national and public land and permission to construct
permanent facilities.

Facilitated notification procedure for the logistics of various value-added, such as the use and consumption of foreign goods as
well as the moving and transfer of goods between the companies within the FTZ.