Investment information

Incentives for Free Trade Zones

• In a Free Trade Zone, customs duties on foreign goods are deferred, customs duties on domestic goods sourced from Korea are refunded, and the zero VAT rate applies. Also, the zero rate applies to goods/services supplied between tenant companies at Free Trade Zones.
• For foreign-invested companies, tax reductions and exemptions on corporate tax, income tax, acquisition tax, registration tax, property tax, and general land tax are provided as stipulated under the Restriction of Special Taxation Act.
• In addition, customs duties, etc. are exempted or refunded in the case of domestic goods that are reported for importation (regarded as an exported product under various laws such as the Liquor Tax Act or recognized as goods contributed for export under the Act on Special Cases Concerning the Refund of Customs Duties Levied on Raw Materials for Export) by tenant companies at Free Trade Zones.
• Within a Free Trade Zone, goods traded between companies are managed autonomously, customs declaration is exempted for movement of goods between tenant companies, and there is no restriction on the storage period of goods except in some areas.
• In addition to the reduction of various taxes and rental fees, subsidies from local governments are also available. The rental period can be up to 50 years, and the rates can be as low as 10~20% of the market rate in the nearby area.