Incentive & Living Environment

The KFEZs offer great incentives such as tax benefit, business support, dergulation, administration support adn one-stop services for your successful business.


Tax benefits

The KFEZs offer exemptions or reductions in tariffs, acquisition tax and property tax for foreign-invested resident firms and developers, based on Special Act on Designation and Management of FEZs and Restriction of Special Taxation Act.

Foreign-invested companies in an KFEZs

Category Benefits Investment Requirements
National tax Tariff 100% exemption for 5 years Imported capital goods only
Local tax Acquisition tax 100% tax exemption for up to 15 years in accordance with local ordinances
Property tax Tax reductions for up to 15 years in accordance with local ordinances


Category Benefits Investment Requirements
National tax tariff 100% exemption for 5 years Imported capital goods only
Local tax Acquisition tax 100% tax exemption for up to 15 years in accordance with local ordinances Foreign investment of over $30 million or a foreign investment ratio of over 50 %, and a total development project cost of over $500 million development
Property tax Tax reductions for up to 15 years in accordance with local ordinances Foreign investment of over $30 million or a foreign investment ratio of over 50 %, and a total development project cost of over $500 million development

Application Procedures

  • 01 File Application for Preliminary Review for Tax Exemption and Reduction
    • Agency in charge of application: Ministry of Strategy and Finance(Department for Overall Foreign Economic Affairs 02-2150-7622)
    • Review to confirm eligibility for tax exemption and reduction
  • 02 File Report of Foreign Investment(new or additional investment)
    • New investment: may be filed until the end of the taxable fiscal year in which the business commenced
    • Additional investment: same as above
    • Change in investment: within 2 years from the occurrence of cause
  • 03 File a Formal Request for Tax Exemption and Reduction
    • May be filed simultaneously with the report of foreign investment
    • Should be filed even in case of confirmation in the preliminary review
  • 04 Decision and Notification on the Request for Tax Exemption and Reduction
    • Process Period: 20 days from filing of the formal request for tax exemption and reduction
    • Notified parties: Applicant, Director of national Tax office, Director of Customs Office, Head of the relevant Local Government

Business Support

The KFEZs offer various financial and site support for cash grants, infrastructure and rent, based on Special Act on Designation and Management of FEZs, Foreign Investment Promotion Act and local ordinances.

  • Cash grants
    Financial support for land and Building purchase costs, rental fee, construction cost and employment grants. The actual amount shall be decided through negotiation.
    Foreign-invested companies with a foreign-investment ratio of 30% or higher
    - Cash grants will be approved based on a company’s accompaniment of technology transfer effects, size of employment, etc
  • Support for infrastructure
    Support for infrastructure including roads, railways, airports, ports, water and sewage, waste treatment facilities
    • 50% of the infrastructure construction costs is covered by government budget.
    • If the Free Economic Zone Committee approves it, 100% of the cost will be covered
  • Support for education and research facilities
    Financial support for the establishment, operation and construction of education and research facilities
    Certain conditions as reputation and contribution to national development should be met
  • Support for rent
    Government or publicly owned land can be leased for up to 50 years The rent shall be around 10/1,000 of the land price
    Foreign-invested companies
  • Lease fee exemption and reduction
    50-100% tax reductions in accordance with local ordinances
    Foreign-invested companies


The KFEZs support foreign-invested firms’ activities by relaxing regulations.

  • Relief from control on labor affairs
    • Not obliged to fill vacant job positions with persons of national merit, the disabled, or the elderly
    • Unpaid leave is permitted
    • May expand the type of work and terms of dispatched worker assignments
  • Exemption from Seoul regulations in metropolitan area
    • Any foreign-invested firm in an FEZ shall be relieved from the application of provision in Seoul Metropolitan Area Readjustment Planning Act(Article 7: Restricted actions in the overcrowding control area, Article 8: Restricted actions in the growth management area, Article 12: Imposition and collection of the overcrowding charges, Article 18: Quota system management for crowd-inducing facilities, Article 19: Control on the mega-scale project development)
  • Easier foreign payment
    • A foreign-invested firm may directly engage in foreign currency transfer to clear a business transaction, up to a limit of $100,000

Admin Support

The KFEZs have enabled swift and efficient decision-making by streamlining administrative procedures for business

Presumption of Designation and Approval of Plan
When a free economic zone is designated, the designation, establishment, approval, or alteration of various areas stipulated in 11 relevant laws including the Urban Development Act and Housing Site Development Promotion Act and their plans will be presumed to have been made according to the details of the development plan for the free economic zone
  • Designation of an area for urban development and establishment of an urban development plan
  • Designation of housing development districts and approval of its development plan
  • Designation of national industrial complexes, general industrial complexes, and advanced urban industrial complexes
  • Designation of tourist destination and tourist complexes
  • Designation of logistic clusters
  • Establishment, alteration, confirmation, or approval of a basic urban plan
  • Alteration of a basic plan for reclamation
  • Alteration of a plan for integrated coastal management and a plan for coastal management areas
  • Alteration of a basic river plan
  • Alteration of a basic plan for waterworks installation and management
  • Alteration of a basic plan for sewage management
Presumption of Permission
In the event that any development project operator obtains approval for an implementation plan or its modification, the operator is deemed to have obtained permission according to 40 relevant laws including Grassland Act and Management of Mountainous Districts Act

One-stop Service

Each FEZ designates individual project managers who support all investment procedures from preliminary review for investment to follow-up management. The project managers not only provide business consulting for new investment opportunities and prospective investment partners, but also administrative support for legal affairs, accounting and tax management. This will help investors make swift business decisions.

  • 01Business consulting

    • Help discover new investment opportunities
    • Find prospective investment partners
    • Evaluate investment location
  • 02Provision of information and Consultation

    • Provision of information and consultation
    • Offer legal, accounting, tax advice
    • Provide investment information about KFEZs
  • 03Administrative

    • Carry out agency business for foreign investor affairs
    • Coordinate work with related authorities
    • Provide constant assistance to solve difficulties

KFEZ Living Environment

Environment for international education

The KFEZs have already invited internationally renowned universities, high schools, middle schools and elementary schools, offering high-quality international education services. Educational institutes in the IFEZ include the international campuses of New York State University, George Mason University, the University of Utah of U.S, and Ghent University of Belgium. Those in the BJFEZ include Germany’s FAU Erlangen-Nürnberg.

State-of-the-art medical services

The quality of Korea’s advanced medical system is proven by the increasing number of foreign travelers visiting Korea for medical tourism. Every residential area has its own small and medium-sized hospitals and pharmacies. General hospitals where foreign patients do not face communication barriers are located across the nation. The KFEZs are striving to establish foreign for-profit hospitals and a cluster of foreign medical institutions combined with hotels, condominiums and therapeutic spas for more advanced medical services.

Upscale cultural infrastructure

The KFEZs have mega-sized theme parks, marine-tourism facilities, large shopping malls and golf courses adjacent to residential areas to ensure a healthy and happy life. Theaters and performance facilities offer not only world famous performances but also Korean culture. Enjoy a culturally abundant life in the pleasant living and business environment of the KFEZs.

Support for education, medical services and others

The KFEZs provide education, medical support for employees at the resident foreign-invested companies.

  • Education

    • Foreign educational institutions(elementary/middle/high schools, universities) may be established
    • KFEZs will provide financial support for land purchases, construction and school operation, and make land available for schools
  • Medical services

    • Opening and operation foreign medical institutions or foreigner-only pharmacies will be permitted
    • Special exceptions may be allowed for subsidiary business-for example, a convalescent hot spring to be run by a medical institution
  • Others

    • Opening foreigner-only casino will be allowed for foreign investors that invest more than $500 million
    • Foreign broadcasting channels will be expanded, organized and operated through local cable networks