The hinterland of harbors is designated as an FTZ and both Korean and foreign-invested companies are eligible to enter the FTZ. However, there are mainly three broad differences concerning the benefits provided to the companies as stipulated in amendments of the Act on Free Trade Zones:

• First of all, if not all the applications can be accepted, the foreign-invested companies will be given priority.
• Secondly, Korean companies and foreign-invested companies will be offered very low rentals within the FTZ. However, the amendment of the Act on Free Trade Zones stipulates that foreign-invested companies fulfilling certain conditions will be provided with additional reductions to the already low rentals.
• Thirdly, Korean companies and foreign-invested companies enjoy an exemption from indirect taxes such as custom duty and value-added tax. However, incentives for direct taxes such as corporate tax will be given only to foreign-invested companies investing more than US$5 million (for logistics sector), which is a 100% reduction for three years and 40% reduction for the following two years.