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[Gangwon-do]
Donghae Free Trade Zone, Donghae-si
Date
2014.05.26
■ Donghae-si, Gangwon-do
- Area: 180.2㎢
- Population: 95,000 (40,000 households)
- GRDP (2011): KRW 2.153 trillion *7.1% of Gangwon-do's total GRDP (KRW 30 trillion)
- Regional characteristics: An industrial/logistics city at the center of the Trans-Pacific Zone
※ Closed Korean port to the Arctic Seaway, making it one of the best locations for export and import logistics - Transportation network:
- Yeongdong·Donghae Highway (3 hrs from Seoul to Donghae) 7th National Route (7 hrs from Seoul to Busan)
- Donghae Port (annual volume: 37,072,000 tons) *6 more berths to be completed by 2020, Seaway to Russia and Japan
■ Project Overview
| Free Trade Area: Area with various incentives and benefits for foreign investors, such as tax incentives, support facilities, and tariff exemptions. |
□ Complex Overview
- Location: Gongdan-1-ro, Donghae-si, Gangwon-do (Block 8, Bukpyeong Industrial Complex)
- Area: 247,734㎡
Type Area(㎡) Rental Fee Lease Period Industrial Site Self-owned factory 154,213 26 won/ ㎡ per month Long-term lease (50 years)
※ Can be extended furtherStandard Factory 27,708 Heavy Industry Pavilion: 370 won/㎡
Light Industry Pavilion: 404 won/㎡Logistics Site 19,276 26 won/㎡ per month Public Facility Site 46,537 - Dormitory: 1 Pavilion (4 stories, 23 units) (Rent: 22,000 won per month)
- Types of Business: Electronics, Electricity, IT, Medical devices, hi-tech ceramic material-related companies, non-ferrous metals (magnesium,) parts materials, or other related businesses
| Qualification Requirements for Tenants | Description | |
| Korean company | Manufacturing industry for export | Company whose export accounted for 50% or more for 1 year or more within the past 3 years prior to the application for tenancy (5% in case of a knowledge-based service company). |
| Wholesale business whose primary business activity involves export and import transactions | ||
| Knowledge-based service company | ||
| Foreign Investment Enterprises | Manufacturing or knowledge-based service | Capital investment should be KRW 100,000,000 per entity, and foreign share should account for 10% or more of the local entity. |
□ Bird's Eye View of the Donghae Free Trade Zone
■ Incentives
- Rental Free: Rent-free lease for land used by a company that satisfies any of the following requirements (for 10 years):
① Newly established foreign investment enterprises with capital investment of USD 10 mil. or more by foreign investors
② Newly established foreign investment enterprises with capital investment of USD 1 mil. or more, and with businesses involving hi-tech or advanced technology
※ Land used by other tenants: 34 won (㎡/month) - Tax Incentive
| Item | Beneficiary | Description |
| Tax incentive | Foreign investment amount (USD 10 mil. or more, manufacturing) |
- Corporate Tax: Tax reduction by 100% for 3 years and 50% for 2 more years - Property tax - 100% tax exemption for 10 years and 50% for another 5 years - Acquisition/Registration tax exemption |
| Export-centered companies | - Corporate Tax/Income Tax reduction: 50% until Mar. 20, 2015 - Property Tax reduction: 100% for 5 years - Acquisition/Registration tax exemption | |
| Special benefits for customs duty | All tenants | - No tariffs for imported goods - Exemptions or refund of domestic goods at the port of importation declaration |
| No value-added tax | All tenants | - Domestic goods declared for import - Overseas goods and services transaction between tenants |
Advantages for Investment
- Optimal SOC infra including centerpiece airport for the Trans-Pacific Zone, ports, and highways
- Leased land for competitive rent, combination of manufacturing, logistics, and distribution functions, as well as One-stop Service by the administration agency, enabling the tenants to launch businesses immediately after they move in (Advantageous for small-scale investments)
□ Business Infrastructure
| ㆍHuman resources: 24,700 students from 5 colleges, plus 15,700 high school students from 27 high schools in the Yeongdong region ㆍInfrastructure: 20,000 tons/day of industrial water (400 won/ton,), Wastewater treatment facility with capacity of 6,500 tons/day Competitive electricity charge (voltage maintenance rate of 99.93% (No. 1 in the world)) ㆍLeading enterprises: LS C&S, Dongbu Metal, Ssangyong Cement, etc. |
□ Donghae Rim Economic Zone
| ㆍGangwondo Global Business Department: T.+82-33-249-2082 ㆍDonghae-si Investment Support Team: T.+82-33-530-2171 ㆍDonghae Free Trade Area Administration Office, Ministry of Industry: T.+82-33-522-6113 / www.ftz.go.kr/donghae |