KOREAN FREE ECONOMIC ZONES: BEST PLACE FOR BUSINESS
Did you know Korea has eight free economic zones?
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.
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