Korea's Auto Industry - Today and Tomorrow - Invest Korea
Korea's Auto Industry - Today and Tomorrow - Invest Korea
Korea's Auto Industry - Today and Tomorrow - Invest Korea
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<strong>Korea</strong>’s <strong>Auto</strong> <strong>Industry</strong> - <strong>Today</strong> <strong>and</strong> <strong>Tomorrow</strong><br />
Offering <strong>Invest</strong>ors a Future-Oriented Optimal <strong>Invest</strong>ment Environment<br />
Foreign investment zones. In the case of high tech manufacturing <strong>and</strong> industry support<br />
services<br />
with foreign investment amounting to US$30 million, it may be designated as a foreign<br />
investment zone, granting most of the benefits granted by Foreign <strong>Invest</strong>ment Promotion Act.<br />
Support for foreign investment zones<br />
Rent. The rental for state-owned property within foreign investment zones may be 100%<br />
exempted.<br />
Tax benefits When designated as foreign investment zones, income <strong>and</strong> corporate tax, if they<br />
are national tax, are exempted for 5 years, <strong>and</strong> 50% for another 2 years (when no income is<br />
generated for 5 years from the date of business, the period is counted after 5 years). Local tax,<br />
(acquisition, registration, property <strong>and</strong> integrated l<strong>and</strong> tax) is 100% exempted for 5 years, with<br />
50% exemption for another 3 years, which can be extended up to 15 years maximum.<br />
Other benefits. Support includes development cost within a foreign investment zone, <strong>and</strong><br />
infrastructure such as harbor, roads, water supply <strong>and</strong> electricity, <strong>and</strong> the foreign-invested<br />
company is not obliged to hire nationally meritorious persons as required by the government’s<br />
labor regulations; <strong>and</strong> they are exempted from payment of disruption costs during factory<br />
construction, as well as the medical, education <strong>and</strong> housing benefits.<br />
Region Area<br />
(1000 Py)<br />
Designation of Foreign <strong>Invest</strong>ment Zones<br />
<strong>Invest</strong>ment<br />
(US$1 mil)<br />
Sachun 52 209 <strong>Korea</strong> GN Taiyo Yuden (Japan)<br />
Chunan 150 46<br />
Core Film (US)<br />
Yangsan 6 32<br />
J.S.T (Singapore)<br />
Yeochun 183 206<br />
<strong>Korea</strong> BASF (Germany)<br />
Yeongi 58 70<br />
<strong>Korea</strong> <strong>Auto</strong> Glass (Japan)<br />
Eumsung 45 240 Toshiba (Japan)/Dongbu Elect<br />
Pyeongtaek 31 158 Dongwoo STI, DW Fiber Film<br />
(Japan)<br />
Asan 112 923<br />
Total 637 1,884<br />
<strong>Invest</strong>or<br />
S-LCD (Japan)<br />
8 regions<br />
Designated<br />
date<br />
99.10<br />
99.11<br />
00.03<br />
00.12<br />
00.12<br />
01.06<br />
03.12<br />
04.05<br />
-<br />
40 I 41 <strong>Korea</strong>’s <strong>Auto</strong> <strong>Industry</strong> - <strong>Today</strong> <strong>and</strong> <strong>Tomorrow</strong>
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