Welcome to the FREE TRADE ZONE

Incentives

Rents

Rents within DFTZ 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	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 121-2 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: 26 won (㎡/month)

Rent on standard factory buildings

Property	Usage	Rent Application Period	Applicable period
Building	Standard factories 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 5 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 121-2 of the Tax Incentive Limitation Law; and industrial support businesses in which the new foreign investment amount is over USD 1 million	Free of charge	Aug.1.2011 ~ Jul.31.2013
Standard factories used by other tenants Heavy industry buildings Light industry buildings	370won 401won

Property

Usage

Rent Application Period

Applicable period

Building

Standard factories 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 5 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 121-2 of the Tax Incentive Limitation Law;
and industrial support businesses in which the new foreign investment
amount is over USD 1 million

Free of
charge

Aug.1.2011
~
Jul.31.2013

Standard factories used by other tenants

Heavy industry buildings

Light industry buildings

370won
401won

Common charge

- A common charge is imposed upon all tenants for the operation and maintenance of common convenience facilities in the FTZ: Common charge = 20 won × leased land and building area (m2) × 4 quarters/year

Tax Breaks

DFTZ benefits from tax breaks under Article 121 of the Tax Incentive Limitation Law, Article121.
Details

Category	Beneficiaries	Support details
Tax breaks	Foreign-invested businesses that require high technologies, and industry support service businesses	5 years of breaks on corporate tax and income tax (3 years of 100% exemption, 2 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	5 years of breaks on corporate tax and income tax (3 years of 100% exemption,2 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
Preferential tariffs	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

Tenant Information