JEJU-DO < invest Korea

On October 4, Jeju Province and the Economic Committee for Agricultural, Fishery, and Livestock jointly hosted a forum on improving the Jeju Investment Promotion Zone system in the council's small conference room. The Jeju Investment Promotion Zone program, established in 2002 to facilitate business convenience, was discussed by experts who addressed issues like the need for zone de-designation and updating investment requirements.

Need for Reform: Setting Zone Management Duration and De-designation

The forum aimed to identify measures for improving system efficiency and boosting competitiveness. As of the first half of this year, Jeju has 44 investment promotion zones. To qualify, businesses must invest at least USD 20 million in tourism-related sectors and, once designated, receive tax and fee reduction incentives. Experts at the forum argued that projects that have achieved their goals should have their designations removed to reduce administrative and investor burdens. They also called for expanding investment requirements to include additional investments and adjusting the minimum amount to reflect current conditions. During the topic presentations, Jang Seong-hee, Director of the Corporate Investment Division, noted, "With similar economic zones appearing in other regions, Jeju's distinctiveness is weakening. Many zones have been designated for over a decade, so setting a management duration is necessary, and exemptions from retroactive tax collection should be considered when a zone is de-designated." In the subsequent discussion, Baek Jin-jong, Jeju's investment promotion advisor, emphasized, "Current provincial tax reduction regulations require companies to maintain the same business at the same location indefinitely. Updating these regulations is urgently needed before implementing de-designation procedures." Participants also expressed concerns about the declining competitiveness of the tax incentives and recommended expanding business attraction measures. In this regard, Professor Kim Haeng-seon of Jeju National University said, "Jeju's incentives are lower than those of other economic zones, and comprehensive support for local tax incentives is necessary." Adding to the discussion, Ko Tae-ho, a senior researcher at the Jeju Research Institute, remarked, "The Jeju Investment Promotion Zone should be reformed to maximize its impact on the regional economy and offer incentives that encourage businesses to choose Jeju as an investment destination."