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New Hub city in KOREA - daejeon opended to the world, citizens realizing dreams

Tax Reduction

Requirements for tax reduction Terms and conditions for tax benefits Details of tax reduction
Corporate Tax / Income Tax Acquisition Tax / Property Tax
Distribution industry
Industry support service business
- For five years 100%
For two years 50%
For fifteen years 100%
developmental foreign investment area Manufacturing Industry: More than $30 million
Tourism Industry: More than $20 million
Distribution/SOC: More than $10 million
R&D: over $2 million(Industry Support Service Business Advanced technology-based business and regular employment of more than 10 people with a master’s degree and higher)
Complex-type foreign investment area Manufacturing Industry: More than $10 million
Distribution industry: over $5 million
For three years 100%
For two years 50%

Reduction of Rental Costs

Supported Requirements for tax reduction Details of tax reduction periods of tax benefits
Reduction of Rental Costs developmental foreign investment area 100% 50 years
(Extension of period for 50 years)
Industry support service business & more than $1million Complex-type foreign investment area 100%
General Industrial Complex area 50%
Parts and materials industry & more than $5million Complex-type foreign investment area 100%
General Industrial Complex area 50%
General manufacturing industry & more than $5million Complex-type foreign investment area 75%
General Industrial Complex area 50%

Global R & D Center : The center provides foreign investing companies with space for research and preparation of factory construction for up to five years at no cost

Cash GrantⅠ

Type Details of support
standard of support more than 30 % of foreign investment
Supported -Industry Support Service Business/ Advanced technology
-based business, construction or expansion of factories
-Construction or expansion of parts and materials factories
-Construction or expansion of R & D buildings related to industry support service business and advanced technology-based business(In case where more than five people with a master’s degree or higher in the related field or more than three years of related work experience are employed.)
Support use Include building purchasing cost, rental costs, construction costs, cost of purchasing capital goods and research materials, installation cost of infrastructure, employment subsidies and education and training subsidies
Amount The Foreign Investment Committee has discussions on the basis of categories that decides whether or not they will offer financial support.

Either cash grants or financial support (mostly space provision) are provided, which is up to the applicant to choose.
The number of regular employees

  • Manufacturing/mining/construction/transportation/publication, video, broadcasting communications and information service/ business site management and business support service/ healthcare and social welfare services ▶ 300 persons
  • Agriculture, forestry and fishery/electricity, gas, steam and water business/ wholesale and retails/ accommodations and restaurants/finance and insurance/science and technology/ arts, sports and recreation-related business ▶ 200 persons
  • Sewage and waste treatment, material recycling and environment restoration/ education services/ associations, groups, repair and maintenance and other personal services ▶ 100 persons
  • Real estates and leasing services ▶ 50 persons

Cash Grant Ⅱ (Support by a Municipal Ordinance)

Type Details of support
Standard of Support more than 30 % of foreign investment in the total investment, the first foreign stockholder
Facilities Grant construction or expansion of factories and research buildings
In cases where facilities are worth more than 2 billion won
In cases where facilities are worth more than 2 billion won, financial support is provided within 5% of the exceeded value.
Support for Companies Making a Massive Investment Manufacturing: more than $30 million
Tourism: over $2 million
Distribution/SOC : over $10 million
R&D :more than $2 million(Advanced technology-based business and regular employment of more than 10 people with a master’s degree and higher
within 50% of the investment cost (agreed to by the municipal council)
Employment Subsidies If more than 20 people are newly employed In cases where the number of people exceeds 20, less than 500,000 won per month is provided for one person. (Within 6 months/ up to 200 million won per business)
Educational Training Subsidies In cases where training courses are offered for the new employment of more than 20 people Less than 500,000 won per month for one person (within 6 months/ up to 200 million per business)