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What are the eligibility requirements to receive a tax reduction in an FEZ
The Korean government allows various businesses to receive tax reductions in a bid to boost foreign investment inflow into free economic zones (FEZs). Since a revision of the relevant law last year, a number of service businesses have been added to the list of businesses eligible for tax reductions. That list is below.
• Businesses with foreign investment of USD 10 million or more and establishing new plant facilities to run a manufacturing business
• Businesses with foreign investment of USD 10 million or more and establishing new facilities to run the following businesses:
- Tourist hotel, flotel (floating hotel), traditional Korean hotel
- Special recreation service, resort complex, amusement park
- International conference facility
- Resort condominium
- Youth training facility
• Businesses with foreign investment of USD 5 million or more and establishing new facilities to run the following:
- Integrated freight terminal
- Businesses that establish and operate via joint collection and delivery centers
- Businesses that run port facilities or logistics businesses in the port hinterlands
- Businesses that run airport facilities or logistics businesses in an airport zone
• Businesses with foreign investment of USD 5 million or more and establishing new medical facilities
• Businesses establishing new or expanding research facilities for the R&D activities of industry supporting service businesses or high-technology businesses and meeting the requirements below:
- With foreign investment of USD 1 million or more
- Having 10 or more employees with master's degrees relevant to the field of business and with a minimum of three years of research experience
• Businesses with foreign investment of USD 10 million or more and establishing new facilities for one or more of the purposes below:
- Engineering
- Telecommunications
- Management and integration of computer programming systems
- Information service
- Other science technology service
- Production of broadcast programs such as movies and videos / service businesses related to the production of movies, videos and broadcast programs / operation of recording facilities / production of other audio-related content such as music
- Development and production of game software
- Management of performance facilities, performance group-related service businesses and other creative work/art
Source : Invest Korea
