Daegu Metropolitan City Government#1, 1-ga, Dongin-dong, Jung-gu, Daegu 700-714, Korea

E-mail: eunyseo@daegu.go.kr

□ Perfect city for Enterprises“Daegu”

With the slogan “Only for Citizens’ Happiness, be creative Daegu” , Daegu

Metropolitan City has been actively working hard to be realized global knowledge

economy city that can lead the industry of Korea.

Having said that, there are still several practical challenges that Daegu

has to deal with such as composing creative-ecosystem, support system

for industry-university cooperation, expansion of the future auto parts

industry research-based, high value added textile and fashion industry,

incubating based industry, creating ICT based fusion industry, and

building the green energy industry based etc.

Despite of the challenges, Daegu, with a favorable geographic

environment, is perfectly suitable to incubate SW convergence industry

based on the figure that SW industrial proportion of the city is higher than

other city. Moreover, information services including healthcare, education,

services are highly developed, which brings huge advantage for SW

convergence industrial development.

Major industrial sector of Korea such as electronics(Gu-mi), automobile(Ul-

san) and shipbuilding(Gyeongnam) are situated near Daegu is another

huge strength to secure new growth engine of Korea through the fusion

between existing industry and SW industry.

In addition, as the president pledged to promote “The next generation of

fusion SW industry cluster” on Su-sung Medical District, Daegu also strive

fully to construct the institutional infrastructure such as Daegu-Gyeongbuk

Free Economic Zone, national Industrial Complex and Daegu Technopolis

for foreigners to live or set up the business conveniently.

With the facts stated above, Daegu can promise you the success of your

business and make your business achievement come true!

Thank you!

Foreign Direct Investment Incentives

1. Real Estate Rental Incentives

  ○ Rent: 1% of land purchasing price

  ○ Duration: 50 years (extendable)

  ○ Reduction and exemption of rent

     - In case of Businesses being located in the Foreign Investment Zone (FIZ)

      ․High-tech industry investing US$1 million or more: 100% exemption

     ․Manufacturing business investing US$5 million or more: up to 75%

     - In case of invested company being located in other areas except FIZ:

full exemption

Eligibility

Manufacturing industry with FDI of $30 million or more

Tourism industry with FDI of $20 million or more

Logistics & Distribution industry with FDI of $10 million or more

R&D with FDI of $5 million or more

2. Land Purchase Subsidies

  ○ Up to 50% of land purchase price

  ○ Depending on total amount invested, technology transfer, employment size, economic effect, etc.

3. Employment and Training Subsidies

○ Employment Subsidy

  - Prerequisite: hiring more than 20 Korean nationals as new employees

  - Subsidy: monthly subsidy of US$ 100~500 per employee exceeding 20 persons for 6

months

  - Period: For 5 years from the date of the FDI company registration

○ Training Subsidy

   - Prerequisite: hiring more than 20 Korean nationals as new employees and providing

them training programs

   - Subsidy: monthly subsidy of US$ 100~500 per employee for 6 months

   - Period: For 5 years from the date of the FDI company registration

  

4. Cash Grants

  ○ Qualification

    - Manufacturing industries investing US$ 30 million or more

    - High-tech industries investing US$ 10 million or more

      (Notified by the Ministry of Knowledge Economy) 

    - Advanced technology businesses investing US$ 10 million or more

     (Notified by the Ministry of Strategy & Finance)

    - Parts and materials businesses investing US$ 10 million or more

     (by Presidential Decree)

     - R&D businesses investing more than US$ 5 million and hiring more than 10

researchers

with a master's degree or higher and more than 3 years working experience 

      

  ○ Subsidy amounts will vary depending on the total amount invested, employment

size,

technology transfer, and economic effects

5. Tax Exemptions & Reductions

  ○ Corporate, income, dividend taxes

    - Advanced technology industries or large investment companies:

      100% exemption for the first 5 years,

      50% exemption for the next 2 years

    - Companies in FIZ:

     100% exemption for the first 3 years,

     50% exemption for the next 2 years

 ○ Registration, acquisition, and property taxes

    - Advanced technology industries, large investment companies, companies in FIZ

    Period: 100% exemption for the first 10 years, 50% for the next 3 years

 

  ○ Customs duty, excise, value-added taxes

    - In case of introducing capital goods to companies eligible for tax incentives:

100% exemption for 3 years

  ○ Calculation of tax reduction:

     Total calculated tax amount × FDI ratio× Reduction ratio

6. Administrative Support

○ One-stop service from factory registration to employee recruiting

○ Designation of Project Manager(PM): a PM to be designated to each foreign-invested

company in order to handle inquiries