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Ministry of Trade, Industry and Energy's Yulchon Free Trade Zone Office

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Tenancy Information

Index page Tenancy Information Incentives

Incentives

Tenant Information

To boost corporate global competitiveness, we provide you with an optimal location environment, including high-speed transportation networks and industrial infrastructure, as well as the best services.

Incentives

Rents
  • Rents within YFTZ may be waived or reduced in accordance with Section 6 or 8 of Article 13 and Article 18 of the Foreign Investment Promotion Act.
  • Rent of private factory land
Rent of private factory land
Rent Lease Criteria Applicable Period
Free of charge The land used by companies under one of the following circumstances (Applicable for 10 years after the lease agreement date)
  1. The new foreign investment amount is USD 10 million.
  2. High-tech businesses under Section 1 of Article 5 of the Industrial Development Act; businesses that require advanced technologies under Section 1 of Articles 121-122 of the Tax Incentive Limitation Law; and industrial support businesses with new foreign investment exceeding USD 1 million
 Aug. 1, 2011
~
Jul. 31, 2013
On payment basis Land used by other tenants: 40 won (㎡/month)
Tax Breaks
  • YFTZ benefits from tax breaks under Article 121 of the Tax Incentive Limitation Law, Article121
  • Details
Tax breaks Details
Category Beneficiaries Support details
Tax breaks Foreign-invested businesses that require
high technologies, and industry support
service businesses
  • Seven years of breaks on corporate tax and income tax (five years of 100% exemption, two years of 50% exemption)
  • 15 years of 100% exemption from acquisition tax, registration tax, and general income tax
Manufacturing businesses in which the foreign investment amount is USD 10 million
  • Five years of breaks on corporate tax and income tax (three years of 100% exemption, two years of 50% exemption)
  • 15 years of 100% exemption from acquisition tax, registration tax, and general income tax
Foreign-invested logistics businesses in which the foreign investment is over USD 5 million
Special incentives All tenants
  • FTZ, which is not included in the customs territory, does not impose tariff on foreign goods.
  • Tariff exemption or refund is given for local goods allowed to enter the FTZ.
Zero-rate VAT All tenants
  • Local goods allowed to enter the FTZ
  • Foreign goods and services that are supplied and provided between FTZ tenants