BJFEZ incentive

Provides the optimal business environment with various benefits


 Busan-Jinhae Free Economic Zone(BJFEZ)
Incentives for Free exonomic Zone + 
Tax deduciton
Management environment
Settlement environment
Incentives fot development porjects

Free Trade Zone(FTZ)
Low-pricend leases
tax deduction
Simplified import and export customs cleararnce
Simplified freight management이미지크게보기
Requirement(FDI) Taxes Reducution or Exemption Remark
  • Logistics
    →More than USD 5M of FDI
  • Manufacturing
    →More than USD 10M of FDI
  • Tour&Leisure
    →More than USD 10M of FDI
  • R&D
    →More than USD 11M of FDI
  • Medical Instiitution
    →More than USD 5M of FDI
National Taxes(Customs Duties, VAT,Individual Consumption Tax) Customs Duties Only 100% for 5 years(for imported capital goods)
  • Exemption of custom duties for reexport products
  • VAT exemption for business activities in FTZ
  • Other indirect tax exemption such as special consumption tax, liquor tax, etc.
    ※ ①Complexe Type : When foreign-invested companies move to the ready industrial complexes
    ※ ②Individual Type : When foreign-in-vested companies move to specific sites it wants except for industrial complexes
in case of complexe type, FEZ, and FTZ
Customs Duties Only 100% for 5 years(for imported capital goods)
in case of individual type and new growth engine industries
Local Taxes(Acquisition Property) Acquisition Tax 100% for 15 years
Property Tax 100% for 7 years and 50% for 3 years
  % of Reduction In cases of
Lease Fee Reduction 100%
  • New Growth Engine Industries with more than USD 1M of FDI
  • Parts & Materials Industries with more than USD 5M of FDI
  • More then 300 employments per day
  • Manufacturing Industries with mor then USD 5M of FDI
  • More then 200 employments per day
  • More than USD 5M of FDI

※ Lease is available for up to 50 years. and Lease Fee is 1% of the Land Price.

Expand tax benefits in 2019

※ National tax(Corporate tax& Income tax) incentives expired in 2018

  • Expand income tax deduction for foreign technicians(50% for 5 years) prolong Special treatment period for foreign technicians(with 19% till 2021)
  • Expand tax benefits for New growth high technology(Korean & foreign companies)
  • Expand tax deduction or tax credit
    • Tax credit for invesment on specific facilities
    • Tax credit for invesment on New growth technology business facilities
    • Tax credit for relocation go Gyeongnam province
    • Tax credit for small& medium sized business
    • Tax credit for business start-ups in employment or industrial crisis area(Jinhae gu, Changwon included)
      ※ 100% deduction of corporate tax income tax for 5 years
      - small medium sized start-ups(31 types of business)
    • Tax credit for employment generation
  • Reformation of Cash Grant system scheduled in 2019