Individualtype Foreign Investment Zones
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- Individualtype Foreign Investment Zones
- Foreign Investment Zones
- Complex type Foreign Investment Zone
- Individual type Foreign Investment Zones
- Service type Foreign Investment Zones
Criteria for Designation
The FIZ shall be designated when new factory facilities (or workplace) are built or newly installed on existing buildings by the same corporation to install factory facilities, machines, facilities, and devices that can be accounted for separately from existing factory facilities, or when buildings that have not been completed are acquired and business activities are conducted after obtaining approval to use the building.
Requirements for Designation
| Required Investment Amount | Type of Business |
|---|---|
| At least USD 30 million |
Manufacturing business, new growth engine industrial technology business, computer programming, system integration and management services, data processing, hosting, and other related service activities |
| At least USD 20 million |
Resort condominium business, tourist business (tourist hotel business, floating tourist hotel business, Korean traditional hotel business), specialized resort business, general resort business, general amusement complex business, international convention facilities, youth training facilities |
| At least USD 10 million |
Complex logistics terminal business, Joint collection and delivery center, business operating a harbor facility, logistics business operated within a harbor hinterland complex, business operating an airport facility and logistics business operated within an airport zone, project creating revertible facilities |
| At least USD 5 million |
A research and development facility to engage in industry-supporting service business or business accompanying high technology under the Enforcement Decree of the Restriction of Special Taxation Act The number of regular workers in exclusive charge of research with at least a master's degree related to the business and at least 3 years’ research career must be at least 10 persons |
The amount of foreign investment that was executed before application for designation shall be excluded. However, where paid-in foreign investment amount is recognized as used for obtaining designation as a foreign investment zone, such as purchase of real estate in an area where the company is planning to obtain designation as an individual-type foreign investment zone, such amount shall be recognized as foreign investment amount. If two or more foreign investors are designated as individual-type FIZs, they shall enter into contracts with the foreign investors on the implementation and performance obligations of their investment plans on the year of the designation.
Application for Designation
To be designated as an individual-type FIZ, a mayor or provincial governor shall make the designation plan including the following documents and file it to the Minister of Trade, Industry and Energy.
Rent and Limit on Occupancy
The rent for Individual-type FIZ may be reduced by 100 percent if the Foreign Investment Committee decides that it will have a positive effect on the national economy. The maximum area to be occupied shall be not more than the area equal to the value of 50 percent of the foreign investment amount by the tenant company.
Alteration of Designation
If changes are made to investment plans and designated notices after being designated as individual-type FIZs, the designated notice must be changed after deliberation by the Foreign Investment Committee. However, insignificant alterations prescribed separately may be notified through prior consultation with the Minister of Trade, Industry and Energy
REQUIREMENTS
- Details of the investment, scale of employment, and business plan of foreign-invested companies to take occupancy in the foreign investment zone
- Viability of eligible foreign investment
- Funding plans
- Plans for supporting major facilities in the foreign investment
- Managing institutions
- Development project implementer
- Plans for land use and major infrastructure
- Land for the zone, buildings, a detailed list of other things or rights, if any
- Other matters prescribed by the Foreign Investment Committee