JEJU-DO < invest Korea

Jeju Investment Promotion Zones (JIPZ)

Jeju Special Self-Governing Province grants unique incentives to investments made on Jeju from either foreign or domestic entities. A variety of benefits such as tax reductions and the application of special cases for public properties will be granted to promote core industries of Jeju Island. The designation is available for any Jeju area by choice of the investors.

Types of Investment Promotion Zones

Investment Promotion Zones are divided into individual-type and complex-types. The individual-type can be designated to any Jeju area as chosen by the investors, from among 27 types of industries. The complex-type can be designated by complex residents in 27 types of industries when a development project operator secures over two-thirds of the land in a recreational area or any area with a district unit plan.

Individual-Type Investment Promotion Zones

Conditions for Designation

Total investment amount exceeding USD 20 million

• Tourist hotel businesses, floating tourist hotel businesses, Korean traditional hotel businesses (excluding casino businesses and bonded sales businesses), general resort complex businesses, specialized resort businesses (excluding golf courses, resort condominium businesses), tourist excursion ship businesses, tourist theater businesses, amusement complex businesses, international conference facility businesses, and tourist restaurant businesses

Total investment budget exceeding USD 5 million

• Cultural industry, senior citizens’ welfare facility businesses, youth training facility businesses, tramway businesses, electricity generation businesses, and training institute businesses
• Autonomous schools, international high schools, foreign educational institutions, and international schools
• Medical institutions (excluding clinics, dental offices, oriental medical clinics, maternity hospitals)
• Advanced technology utilization businesses, healthcare technology R&D businesses and R&D service businesses, food and beverage manufacturing businesses, marina businesses, cosmetics manufacturing businesses, and R&D businesses

Complex-Type Investment Promotion Zones

Conditions for Designation

Total investment amount exceeding KRW 100 billion

• The complex-type can be designated among complex residents in 27 types of industries, which are the same as those for the individual-types, when a development project operator secures over two-thirds of the land in a recreational area or any area with a district unit plan.

Incentives for Investment Promotion Zones

Exemption of National Taxes

• Corporate taxes and income taxes are exempted for three years, and then reduced by 50% for two years.
• For development project operators, corporate taxes and income taxes are reduced by 50% for three years, and then 25% for two years.
• Customs duties are exempted for capital goods that are imported for direct use within three years from the designation date.

Exemption of Local Taxes

• Acquisition taxes are exempted for five years from the designation date (for complex-type, from the initial date of real estate acquisition)
• Property taxes are exempted for ten years from the designation date (for complex-type, from the initial date of the formation of tax liability)

Exemption of Various Charges

• Development charges and public water fees are exempted; farmland preservation charges, alternative grassland creation expenses, and alternative forest resources development expenditure are reduced by 50%, and sewerage charges by 15%

Designation Process

Post-Designation