Incentive of foreign investment

Other support

  • Lease and lease reduction of national and common property
    • Land, factory, and other national and common property of local and national government community is possible for use, profit or lease, and purchase to foreign investment business by a private contract. Leasing period is up to 50 years, and renewal of leasing period within 50 years is possible when the leasing period ends. Construction of permanent facility and factory on the leased land is possible with conditions of donation to national and local government community or original restoration.
    • When leasing national and common property in foreign investment area or national and local land in city industrial complex and agricultural industrial complex by related law of industrial location and development, lease reduction can be from 50~100% according to the subject through regular procedure. When leasing common property, lease reduction can be done through ordinance of local and national government community.
  • Reduction ratio and subject of national and common property lease
Reduction ratio Subjects of reduction
100% reduction settlement of individual-formed Foreign investment area of Foreign investment business
more than 100 million dollars of high-degree technological business in settlement of complex-formed Foreign investment area
75% reduction more than 500 million dollars of manufacturing business in settlement of complex-formed Foreign investment area
SOC expansion · control of industry structure · contributing business in finance of local government community
50% reduction national industrial complex, local industrial complex, land within in city industrial complex and agricultural industrial complex
Requesting procedure of lease reduction
Requesting lease reduction of national property
Requesting lease reduction of national property
Requesting lease reduction of local property
Requesting lease reduction of local property
Submitting documents
  • - Document confirming administrator of facility or document confirming business subject of lease reduction
  • - Copy of lease contract of land
  • Appointment and management of project manager
    • For efficient support of investment business of foreign investment business, the government administers by appointing project manager. Project manager can be appointed by foreign investor or by each foreign investment business (appointed by president of KOTRA), which in this case the appointed project manager will be reported to relevant investors and foreign investment business.
Subject of project manager
  • - affiliated employee of Korea Trade-Investment Promotion Agency
  • - person of dispatch
  • - central administrative organization related in foreign investment, local government community , affiliated civil worker or employee of government investment organization and public institution according to national investment management law .
  • - In this case, approval required from head of affiliated institution or organization
  • Main duties include collection, supply, consultation of requested information from foreign investment business and investors as well as business support, proxy of civil complaint related to foreign investment, and all guidance of housing lease, school registration for families of executives and staff in foreign investment business and other various duties related to foreign investment.
  • Construction of new factory within capital area
  • Acts of new building, reconstruction, transfer, or change of business in factory building area over 500 square meter is prohibited in overpopulated constraint district
  • development administration district and nature preservation area. However the foreign investment business with building area of 500 square meter or more can be allowed for new construction and reconstruction of industrial complex in development administration district if the following is satisfied. Due to the conditions of the sun, this matter will only be valid until December 31st, 2010.
    • 25 business such as manufacturing industry of industrial gas
    • 50% or more Ratio of foreign investment. But in provisions of Articles 6, 7 and Item 2, Article 7 as a purpose of attracting foreign investment business before December 31st, 2010 the foreign investment business establishing factory within the announced industrial complex should have 30% or more foreign investment ratio by the same provision of Item 3, Article 7.
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