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03INVEST & LOCATE

Invest & Locate

An investment environment: less risk, more speed
Land requirements, zone and relocation incentives

LAND REQUIREMENT

Under the Special Act on the Development of Enterprise Cities,
the land acquisition threshold is reduced to 50%.

Removing the risk of unacquired land, and with it the main obstacle to delivery

How the two acts compare

Land requirements differ depending on the legislation that applies.

Urban Development Act

Statutory minimum
66.7% or more
Land area requirement
Two-thirds of the project land
Owner consent
Consent from at least half of all landowners
Condition
Both requirements must be met

Special Act on the Development of Enterprise CitiesApplicable to B-CITY

Statutory minimum
50%
Land area requirement
50% of the project land
Owner consent
Title acquired, or consent to use
Condition
Once the statutory threshold is met, the remaining land may be acquired through expropriation, subject to applicable requirements.

INVESTMENT BENEFITS

From fast-track permitting to significant tax incentives

Incentives spanning special-zone designations and support for relocating companies

Incentives by special zone

Special-zone support across the board

  • Bio sector
    National High-Tech Strategic Industry Specialized Complex

    Designated: Chuncheon · Hongcheon

    • Fast-track permitting
      • Permit time-out rule — deemed approval if processing is not completed within 60 days
      • Infrastructure installation cost support
    • Infrastructure & loans
      • Up to KRW 100 billion in infrastructure support per complex
      • R&D loans with a 2-percentage-point interest rate reduction
    • Tax support
      • National strategic technology investment tax credit (up to 25–35%)
      • R&D and workforce development tax credit

    Resolved at the 6th National High-Tech Strategic Industry Committee (2024.06.27)

  • Global Innovation
    Regulation-Free Special Zone

    Designated: Chuncheon · Wonju

    • Broad regulatory relief
      • Negative-list regulation — permitted unless prohibited
      • Support for overseas demonstration and R&D
    • Demonstration support
      • Support for liability insurance premiums for demonstration projects
      • Budget support for joint international demonstration R&D
    • Levies & taxes
      • Reduction of eight levies, including development, farmland, forest and traffic charges
      • Tax relief for operators

    Designated by the Ministry of SMEs and Startups (2023.12.28) · Notice No. 2024-33

  • Education Development Special Zone
    pilot

    Designated: Chuncheon · Wonju · Hwacheon

    • Talent & infrastructure
      • Full adoption of international education, with accredited international curricula
      • Expanded local-talent admissions (Edu-Forest)
    • Teaching & childcare
      • Recruitment of high-caliber teachers, with special allowances
      • Support for early-childhood education costs
      • Support for parents, including childcare service vouchers
    • Tax & property provisions
      • Proposed tax support under amendments to the Gangwon Special State Act
      • Special provision for negotiated contracts on state- and public-owned property

    Ministry of Education (2024.02.28)

Key incentives for relocating companies

For companies relocating to or investing in the region

  • 01SUBSIDY

    Investment & relocation subsidies
    Up to KRW 30 billion in direct support
    • Land acquisition
    • Capital equipment
    • HQ relocation

  • 02TAX

    Tax relief
    100% tax exemption for up to 5 years, followed by a 50% reduction for 2 years
    • Income tax
    • Corporate tax
    • Acquisition tax
    • Property tax

* Eligibility and amounts may change with policy, legislation and local budgets. Incentives depend on each company’s circumstances (sector, investment size, employment) and apply only to investments made after an investment agreement (such as an MOU) is signed with the local authority. Please confirm with the relevant ministry and local authority before investing.