Korea's Free Economic Zones boast a winning combination of the world's best ideas,
talent and businesses. Every day, new success stories are being told.
Step out into the world through Korea's Free Economic Zones and create
the future you dream of.
Strategic location and world-class logistics facilities
Korea is located between the two giant markets of Japan and China and can reach more than one million people in 51 cities all within a flight time of 3.5 hours.
Top notch airports including Incheon International Airport[Incheon Airport Facilities & Capacity]
| Area | Runway | Passenger terminal | Cargo terminal |
|---|---|---|---|
| 21,292,000 m2 | 2x(3,750m X 60m)
1x(4,000m X 60m) |
2,437,000 m2 | 258,000 m2 |
| No. of flights (year) | Passenger volume (year) | Cargo volume (year) | FTZ |
|---|---|---|---|
| 480,000 | 100 million | 7 million tons | 3,015,000 m2 |
- Effective passenger and traffic processing via numerous airports near FEZs including those in Gimhae, Gimpo, Muan, Daegu and Yeosu
[Facilities & Capacity of Airports near FEZs (2008)]
| Gimpo | Gimhae | Daegu | Gwangju | Cheongju | Muan | Yeosu | |
|---|---|---|---|---|---|---|---|
| Area(1000 m2) | 8,459 | 6,519 | 6,617 | 5,855 | 6,740 | 2,586 | 1,328 |
| Passenger(10K/year) | 3,439 | 1,732 | 370 | 293 | 315 | 519 | 272 |
| Cargo(10K tons/year) | 144 | 26 | 1.7 | 5.5 | 3.8 | 5 | 1.6 |
- Busan Port, the world's 5th largest, handled 13 million TEU of cargo in 2007.
- Korea is situated in the main shipping routes linking Europe, Asia and North America. If the inter-Korean railway is connected, Korea would develop into a global logistics base with China, Russia, Mongolia, Central Asia and
Europe within its sphere.
[Capacity of Port Facilities near FEZs (2007)]
| Port | Gimhae | |
|---|---|---|
| Berths | 1,000 tons/year | |
| Incheon Port | 86 | 79,370 |
| Pyeongtaek-Dangjin Port | 30 | 33,540 |
| Gunsan Port | 29 | 17,628 |
| Yeosu Port | 9 | 3,038 |
| Jinhae Port | 9 | 2,661 |
| Busan Port | 132 | 164,757 |
| Ulsan Port | 97 | 52,035 |
| Pohang Port | 45 | 50,956 |
- Busan New Port and Gwangyang Bay are being developed into mega container terminals with automated
systems. These ports are designated as FEZs and will be grow into international logistics complexes.
[Busan New Port and Gwangyang Port Development (2008)]
| Busan New Port (1995-2011) | Gwangyang Port (1987-2011) | |
|---|---|---|
| Berth development | 27 berths (6 completed) | 20 berths (12 completed) |
| Handling capacity | 9.65 million TEU (2.4 million completed) |
6.85 million TEU
(3.88 million completed) |
| Logistics complex |
6.01 million m2
(0.7 million completed) |
3.86 million m2 (0.4 million completed) |
- Port facilities near FEZs including Incheon Port and Pyeongtaek-Dangjin Port will be expanded and logistics conditions in FEZs will be reinforced to cope with growing cargo volume.
[Logistics Complex Development Plan for Other Ports near FEZs(2007)]
| 2011 | 2015 | 2020 | |
|---|---|---|---|
| Incheon Port | 4,143 | 5,147 | 6,665 |
| Pyeingtaek-Dangjin Port | 1,405 | 2,628 | 4,479 |
| Ulsan Port | 456 | 456 | 456 |
| Pohang Port | 423 | 690 | 912 |
Tax Benefits
- Corporate tax: 100% for 3 years from generation of operating, 50% for 2 years thereafter
- Tariff: 100% for 3 years on imported capital goods
- Acquisition, registration, and property tax (including land): 100% for 3 years, 50% for 2 years
thereafter
* Possible extension of deduction period and amount based on regulations of local governments
Tax benefits offered to:
- Foreign investment in manufacturing or tourism sectors ( USD 10 million and over),
logistics sector (USD 5 million and over), Developers (USD 30 million and over), medical institutions
(USD 5 million and over)
An income discount credit of 30 percent or a low income tax rate of 17 percent
Cash grants and various assistance
Construction/expansion of production facility for designated uses with investment exceeding USD10 million, or R&D facility for designated uses hiring at least 10 researchers
Possible use, rent or purchase of public property through non-bid contract and reduction of rental fees Priority support from central and local governments for building infrastructure such as roads, airports,ports, and parksDeregulation
Effective support system
- Various approval processes, which had been overseen by local governments, are handled by the FEZ Authorities.
- Project managers assist with all services related to investment including consulting, execution and follow-up
support.
