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Incentives
Tax Reductions and Exemptions
except as otherwise prescribed by regulations.
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Acquisition Tax · Property Tax
Properties acquired and owned by foreign-invested companies to operate registered businesses are eligible for acquisition tax and property tax reductions or exemptions.
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Tax Support for Foreigners
Tax support for foreigners includes income tax reductions for foreign engineers, special taxation for foreign workers, foreign workers at regional offices, and the application of special taxation
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Reductions or
Exemptions on Capital GoodsIn the case of capital goods imported through the notification of foreign investment by the acquisition of newly issued stocks, etc. among capital goods that are used in businesses subject to tax reductions or exemptions, customs duties, individual consumption tax, and value-added tax are exempted under the Restriction of Special Taxation Act.
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Tax Deductions for
Koreans and ForeignersTax deductions for Koreans and foreigners include tax credits for integrated investment, tax reductions or exemptions for companies in enterprise cities, special research and development zones, etc., tax credit for companies that increased employment, tax reductions or exemptions for startups in employment or industrial crisis areas, and tax credit for SMEs.
Location Support
foreign investment zones, free trade zones and free economic zones.
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Foreign investment zones
Foreign investment zones are subject to tax relief as well as location support when certain requirements are met. There are, in some cases, exceptions to those restricted by other legislation.
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Free Economic Zones
Free economic zones are special locations designed to actively attract foreign investment by improving the business environment and living conditions for foreign-invested companies as well as facilitating business activities and investment by relieving regulations.
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Free Trade Zones
Free trade zones are locations designated to attract manufacturing and logistics companies in industrial complexes, airports, ports, distribution complexes, and cargo terminals and create synergic effects by connecting businesses.
Cash Grants
Under the related law, Article 20.2 of the Enforcement Decree of the Foreign Investment Promotion Act, the following items are supported: Purchase costs or rental fees for land or buildings, construction costs, purchase costs for capital goods and research equipment, installation costs for infrastructure, and employment subsidies and education and training subsidies.
Further details are available for download in our informative PDF guide.
R&D Center
Business-affiliated research institutes or R&D departments that meet certain qualifications may apply and register to the Korea Industrial Technology Association to receive varius types of support for their research and development activities.
Notification
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01
Prior consultation
Establish a reserch institute
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02
Online
Register the establishment
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03
KOITA
Receive and review a report
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04
Print online
Issue a certificate
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05
KOITA
Follow-up management
Further details are available for download in our informative PDF guide.