Tax Benefits forforeign invested companies

Tax benefits for foreign invested companieshave contracted but the benefits are given to investors which make aninvestment in the industries which require advanced technologies or make anenormous investment.

(1) A foreign invested business that requiresany of the technologies and belongs to the new growth engine industry essentialfor upgrading domestic industrial structures and strengthening internationalcompetitiveness.

Ø  Amanufacturing facility or business establishment should be installed or operated.

Ø  Aninvestment exceeding USD 2 million or more should be made.

 (2) Aforeign company which resides and operates its business in foreign investedareas or free trade zones making an investment in certain amount of money inthe Republic of Korea.

 (3) Taxsupport

Ø  Forthe first five years: 100% of corporate tax and income tax reduction.

Ø  Forthe following two years: 50% of corporate tax and income tax reduction.

Ø  Forthe period above the same rate of reduction is granted in acquisition tax,local tax, and dividend tax.