♦ Businesses eligible to move into the Free Trade Zones:

– Manufacturing and logistics businesses operated by a local foreign-invested company as
stipulated in the Act on the Designation of Free Trade Zones;
– Local logistics businesses as stipulated in the Act on Designation and Management of
Customs-Free Zones for Fostering International Logistics Centers.

♦ Investment conditions and amount of investment

– New factory facilities have to be set up with an investment amount of at least US$ 10mil.
for the manufacturing sector and US$5 mil. for the logistics sector
– Exemption of corporate and income tax rates: Corporate tax shall be exempted for the
first three years after income accrues, and reduced by 50% for the following two years. If
no income accrues during five years, then tax shall be exempted for five years since
establishment.

<Businesses in the Masan and Iksan Free Trade Zones>

– Businesses in the Masan and Iksan areas (formerly free export zones) are considered to
be Free Trade Zones and are therefore subject to the same conditions as for Foreign
Investment Zones with regard to tax reduction and rent.
– In other words, foreign-invested companies located in the free export zones are subject
to the same conditions with regard to tax reduction and benefits as businesses in Foreign
Investment Zones.