In an attempt to spark a resurgence in Foreign Direct Investment in Korea, the Korean government has proposed the development of Mini Free Economic Zones. These zones are an attempt to attract SMEs that supply parts to Korean companies.
These Mini-FEZs are expected to charge rent far lower than market value in Korea, offer tax incentives, while offering no fee leases for companies that bring into the country technology and invest over USD 1 million in the local economy.
The exact details of the plan are not known. I will update the readers when more details become known.
I suspect that the plan will, also, be a benefit to companies already in Korea that are looking to modernize facilities.
Sean Hayes may be contacted at: [email protected]
Sean Hayes is co-chair of the Korea Practice Team at IPG Legal. He is the only non-Korean to have worked as an attorney for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty.
- Amendment to the Korean Foreign Investment Promotion Act 2019 – Investment Incentives in Korea
- Foreign Tax Incentives to be Cut: 17% Flat Tax Law Revised
- Tax Breaks for Korean Landlords: Real Estate Taxation Basics
- Foreign Account Tax Compliance Act (FACTA) in Korea
- Korean National Tax Service Tax Law News Release to Foreign Corporate Taxpayers: Korean Tax Law Updates
- Korea’s Real Name Transaction Act Strengthened: Korea’s Banking Law Basics
- Can a Foreign Company be Deemed a Domestic Company for Tax Purposes and Taxed on Worldwide Income?
- “Samsung’s First Family Struggles to Keep Grip on Company” Report by Bloomberg
- Korean Tax Law Amendment Press Release by Korean Government
- Korean Tax Risk of Foreign Corporation Deemed “Actual Business Management Locale” within Korea: Korea Tax Law Basics