KOREAN FREE ECO­NOMIC ZONES: BEST PLACE FOR BUSI­NESS

Did you know Korea has eight free eco­nomic zones?

Forbes - - FORBES 100TH ANNIVERSARY -

Korean Free Eco­nomic Zones (KFEZ) are spe­cially des­ig­nated ar­eas cre­ated to im­prove the busi­ness and liv­ing en­vi­ron­ment for for­eign­in­vested firms in Korea. Since the 2003 in­au­gu­ra­tion of a KFEZ in In­cheon, the num­ber of KFEZS in op­er­a­tion has grown to eight: In­cheon, Bu­san-jin­hae, Gwangyang Bay Area, Daegu- Gyeong­buk, Sae­mangeum- Gun­san, Yel­low Sea, East Coast and Chung­buk.

The amount of for­eign di­rect in­vest­ment in the KFEZS in 2016 in­creased 53% to US$2.23 bil­lion com­pared with a year ear­lier, ac­count­ing for 10% of to­tal for­eign di­rect in­vest­ment in Korea. As of the end of last year, there were about 126,000 peo­ple em­ployed in the KFEZS.

About 67% of the to­tal area (320 km2) tar­geted for use as a KFEZ has been de­vel­oped since 2003. In­vest­ment con­di­tions for for­eign in­vestors are be­ing im­proved through dereg­u­la­tion, more ef­fec­tive poli­cies and fi­nan­cial sup­port. Var­i­ous ben­e­fits in­clude the re­duc­tion or ex­emp­tion of cor­po­rate tax, in­come tax, ac­qui­si­tion tax and prop­erty tax, cash grants, eased reg­u­la­tions on la­bor and free for­eign pay­ment.

Each KFEZ des­ig­nates in­di­vid­ual project man­agers who sup­port all in­vest­ment pro­ce­dures, from pre­lim­i­nary re­view for in­vest­ment to fol­low-up man­age­ment. The project man­agers not only pro­vide busi­ness con­sult­ing for new in­vest­ment op­por­tu­ni­ties and prospec­tive in­vest­ment part­ners, but also ad­min­is­tra­tive sup­port for le­gal af­fairs, ac­count­ing and tax man­age­ment. This en­sures in­vestors get the help they need to make swift busi­ness de­ci­sions.

Korea, a North­east Asian hub, is rec­og­nized world­wide for its well- de­vel­oped in­fra­struc­ture, strate­gic lo­ca­tion, high- skilled man­power and its global lo­gis­tics sys­tem.

IFEZ Cen­ter Road

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