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FEZ Incentives

Free Economy Zone Incentives

What is FEZ?

Major Incentives

Customs Duty Exemption

Acquisition Tax Exemption

Property Tax Reduction/Exemption

Corporate Tax Reduction/Exemption

VAT Exemption

VAT Refund

Special Consumption Tax Exemption

Liquor Tax Exemption

Low Rental Fee

Rent Reduction

Cash Grant

Interest Rate Support

Infrastructure Support

Training Support

Simplified Import/Export Clearance

Simplified Freight Management

Tax Reductions and Exemptions

Tax Reductions and Exemptions - Type of tax, Reduction details, Period , Requirements(e.g. FDI Amount)
Type of tax Reduction details Period Requirements(e.g. FDI Amount)
National tax Customs duty 100% 5 years
  • Imported capital goods
Local tax Acquisition tax 100% 15 years
  • Logistics : over USD 5M
  • Manufacturing : over USD 10M
  • Tourism&Leisure : over USD 10M
  • R&D : over USD 1M
  • Medical : over USD 5M
Property tax 100% Busan Jinhae
7years 10years
50% 3years 5years

Remark

  • Tariff exemption for re-exported goods
  • VAT exemption for business activities in FTZ
  • Other indirect tax exemption : Special consumption tax, Liquor tax etc.

※ Specific terms depend on the site(FEZ, FTZ, individual/complex type)

Site Support

Lease

  • Lease available up to 50 years
  • Rent : 1% of the land price

Rent Reduction

Rent Reduction - Business/Industry, Reduction Rate, Requirements(FDI Amount ($USD), No. of Employees), Remark
Business/Industry Reduction Rate Requirements Remark
FDI Amount ($USD) No. of Employees
Technologies for
New Growth Engine Industry
100% Over $1M
Manufacturing 100% Over $5M Companies in Material &
Components Complex
Over $2.5M 200 or more
90% Over $2.5M 150-200 or less
75% Over $5M
Over $2.5M 70-150 or less

Cash Grant

Cash grant is a system to provide part of the business cost in cash for companies which operate in a new growth engine technology accompanying industry or high technology and high-tech product industry or materials and components industry, create large-scale employment, or which establish an R&D center or regional headquarters to promote FDI which contributes significantly to the national economy

Eligible for Cash Grant

  • New Growth Engines
  • High Technologies
  • Parts & Materials
  • R&D Centers
  • Job Creation
  • Regional Headquarters
  • Others

For more Info. Lean more about BJFEZ Incentives