■ Target Business
– Manufacturing and logistics businesses which are run by the occupational companies stipulated in Act on Designation and Management of Free Trade Zones
– logistics business stipulated in the Act on Designation and Management of Free Trade Zones for Cultivation of International Logistics Base”
■ Investment requirements and size
– New plant facilities shall be installed and the foreign investment should be more than $ 10 million for manufacturing business and more than $ 5 million for logistics business.
– Corporate (Income) tax reduction: Full reduction of corporate tax equivalent to the equity of foreign investment for 3 years from the date of first income generation year (if note income is not generated within 5 years, the fiscal year of the day when 5 years are applied and 50% for the subsequent 2 years
<Previous occupied businesses in Masan and Iksan free trade zones>
The existing free export zones are considered to be designated as free trade zones (article w of Addenda of Free Trade Area Establishment Act) and are applicable to tax reduction and rents compared with complex type foreign investment districts (article 8 of Addenda of the Act).
– Accordingly, the foreign-invested company which moved into the free export zones gets the same tax reduction benefits.
