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.
Inviting scenery & cultural abundance
Rivers, mountains and sea come together to create an inviting backdrop amid an optimal climate featuring four distinct seasons.
Pristine beaches and refreshing streams allow you to get away from the daily grind, while national parks revitalize your senses.
Enjoy easy access to the economic and cultural centers of Seoul, Busan and Daegu, along with regional fests including PIFF (Pusan International Film Festival) and the Jinhae cherry blossom festival.
Experience Korea's rich cultural legacy which includes UNESCO world heritage sites and historical relics.
High-tech cities equipped with deluxe tourism complexes
Combined tourism, business and residential city
- Songdo and Cheongna districts in Incheon FEZ, Myeongji district in Busan/Jinhae FEZ, Shindeok district in
Gwangyang Bay Area FEZ
- State-of-the-art international business complex with easy access to various art centers, golf courses and other leisure facilities, shopping malls, parks and waterfront parks
Tourist complex boasting endless fun and entertainment
- Yeongjong district in Incheon FEZ, Hwayang district in Gwangyang Bay Area FEZ, Ungdong district in
Busan/Jinhae FEZ, Inju district in Yellow Sea FEZ, Gogunsan Islands in Saemangeum/Gunsan FEZ
- Mega theme parks, marine resorts, sports facilities including golf courses and indoor skiing, and resort hotels
Possible permission to open foreigner-only casino with foreign investment exceeding USD 500 million in the tourism sector
Deregulation to enable development of upscale residential complex on the grounds of golf clubs Ubiquitous system and intelligent building system for efficient urban and building management
Adoption of new transportation systems free of delay, accident and pollution such as Bus Rapid Transit, Light Rail Transit and MagLev trains
Green network where the entire city is connected to green space
Experience Korea's rich cultural legacy which includes UNESCO world heritage sites and historical relics.
Foreign educational institutions
Elementary and secondary schools offering high quality education to prepare students for admission to prominent universities worldwide and to nurture future global leaders
World-class universities and graduate schools offering courses on basic sciences, humanities, business, law, economics, engineering, arts and culture
Active collaboration between the academic, the corporate and research sectors
Regulatory Framework
Legal basis :
- Act on Designation and Management of Free Economic Zones
(hereinafter "FEZ Act" ; effective as of July 1, 2003)
- Special Act on Establishment and Operation of Foreign Educational Institutions in Free Economic Zones
and Jeju Free International City (hereinafter "Special Act" ; effective as of Dec. 1, 2005)
Founding organization :
Non-profit, foreign educational institutions (Special Act, Article 4)
Establishment procedure :
Obtain approval from Minister of Education, Science and Technology
(Special Act, Article 5)
*Application > Establishment Review Committee (MEST) >
FEZ Committee (MKE) > Approval (MEST)
Establishment procedure
- Facilities : Allowed to lease school site and buildings (Enforcement Decree of the Special Act, Article 2)
- Admissions : No residence requirement for Korean nationals for elementary and secondary school
admission (FEZ Act, Article 22)
* But admission limited to 30% of student body
- Operation : Autonomy with regard to admissions criteria, tuition fees, curriculum (Special Act, Article 3)
* In principle, not subject to Early Childhood Education Act, Elementary and Secondary schools (2 hours each per week)
Incentives
- Site : Possible rent or purchase of public property through non-bid contract and reduction of rental fees
(special Act, Article 13 : Foreign Investment Promotion Act, Article 13 applies)
- Financial assistance : Funds available from central and local governments for site purchase, facility
construction and school operation (FEZ Act, Article 22)
- Tax benefits : deduction of VAT, deduction of real estate acquisition and registration tax
(Income Tax Act, Local Tax Act)
Status of Current Projects
New Songdo City International School (approx. 70,000m2)
- Within the Songdo International Business District, Incheon FEZ
- L-12 course to be run by US-based International School Services
(2,100 students from kindergarten to grade 12)
- Construction began in March 2006, scheduled to open in September 2009
Shipping & Transport College Korea
- Within the World Marine Center, Gwangyang City, Gwangyang Bat Area FEZ
- Master's Degree course and short courses offered by STC Group of the Netherlands to
cultivate
experts in shipping and transport
- Construction began in May 2007, opened in March 2008
Knowledge Village (approx. 250,000m2)
- Within BL-9, Cheongna District, Incheon FEZ
- Create an open university system similar to Dubai Knowledge Village in which multiple universities
from each sector (tourism and leisure etc.) have a small presence on the campus
Songdo International Academic Research Complex
- Within Section 5 and 7 (approx. 1 million m2) and Section 11 (approx. 500,000 m2),
Songdo District, Incheon FEZ
- Create an international academic research complex by attracting prominent local and international
education and research institutes in IT and BT sectors
Attract leading universities and R&D centers
- Intend to fund the procurement of anchor universities and R&D centers,
attract five universities and 10 R&D
centers in high
-tech industries by 2012
education and research institutes in IT and BT sectors
centers in high-tech industries by 2012
Regulatory Framework
Legal basis :
- Act on Designation and Management of Free Economic Zones
(hereinafter "FEZ Act" ; effective as of Jult 1, 2003)
- Special Act on th Establishment and Operation of International Hospotal on Free Economic Zones
(hereinafter "Special Act" ; submission to the National Assembly scheduled for October 2008)
Founding organization :
Foreigners or legal entities established under the commercial code to
provide medical service
Establishment procedure :
Obtain approval from Minister of Health Welfare and Familt Affairs
* Clinics and oriental medicine clinics are nor allowed
Type of foreign hospitals :
General hospiral, hospital, dental clinic, long term care facility
* Application (MHWFA) > REZ committee > Approval (MHWFA)
Exemptions from regulations
- Not subject to national health insurance (FEZ Act, Article 23, Paragraph 5)
- Foreign license holders (doctors, dentists,pharmacists) allowed to practice
(FEZ Act, Article 23, Paragraph 6)
- Deregulation of medical ads from July 2007 (Revision to Medical Act)
- Expansion of incidental businesses : Medical tourism facilities such as hot springs allowed
(FEZ Act, Article 20, Item 3)
Incentives
- Tax benefits : Deduction of corporate tax on foreign investment exceeding USD 5 million in
a foreign medical institution
(100% X foreign investment ratio for 3 years, 50% X foreign investment ratio for next 2 years)
"Special Acton Foreign Medical Institutions"
stipulatinf foreign hospital approval procedure, allowance of foreign medical professionals,
and exemptions on the use of pharmaceuticals will be enacted by MHWFA
Convenient housing
Priority supply of housing for foreign employees of foreign-invested enterprises in FEZs, foreign educational and medical institutions, and international organizations
Between 1 and 10 percent of all housing in each district will be set aside for foreign employees of foreign-invested enterprises
Foreign-invested enterprises are allowed to build rental housing for foreign employees to provide a wide
range of housing options
Various forms of assistance
Foreign language service including the issuance and processing of official documents in foreign languages
Direct payment using means of international payment for recurring transactions of USD 10,000 or less per transaction
A variety of foreign broadcasts
An ombudsman service to help foreigners resolve problems related to working and living in Korea
