Management Support and Incentives for Foreign Investors(FDI) of Gyeonggi, Korea

With supports such as tax reduction and great infrastructure, Gyeonggi-do offers the best opportunity to the foreign investors.

Globalization has made the world flat and increased the "interconnectedness" from different corners around the world. This can be manifested in being able to connect with friends and family to different parts of the globe through the internet, free market access and the like. More so, it has created an opportunity for improved awareness of various business prospects. In this way, investors are able to access new investment and learn through new market trends even in a far distance.

From this, there are stronger ties promoting positive relations between countries in investment and trade. There are noticeable changes from being able to access available products and services entailing an improved financial opportunity for both parties. The Republic of Korea has gained its reputation from being an aid recipient to becoming the only country to transition as an aid donor. Having been known as the Asian Dragon with a world ranking as the 11^th largest economy, it is one of the most vital global economic power of today.

Accordingly, Gyeonggi-do boasts as the Business Capital of Korea. Gyeonggi-do houses 30% of manufacturers of the Nation’s total count, making it the heart of the Korean economy. It leverages being the home of world-leading enterprises including Samsung Electronics, LG Electronics, Hyundai-Kia Motors, SK Hynix and LG Display, to name a few. Other than that, Gyeonggi-do comprises one-third of Korea's small and medium companies and the largest concentration of the nation’s knowledge-based industries.

Gyeonggi-do situates itself as an ideal location for foreign investment. It strives to provide the best support possible to ensure the success of foreign-invested operations in the province.

Highlights of Gyeonggi-do for Foreign Investors

Call for Business: Lease Benefits & Tax Exemptions

Gyeonggi provides national tax exemptions (on corporate and income taxes) for five to seven years from the first year of the company’s profit. More than that, a local tax break (on acquisition and property taxes)can also be received by companies for up to 10 to 15 years, in addition totariffs and VAT for five years. 

Industrial complexes are also made exclusively for foreign companies that are strategically positioned. Gyeonggi-do offers very low rental rates (for eligible companies) of about 1% of the publicly listed rates.
Apart from these, Gyeonggi offers efficient administrative services such as but not limited to infrastructure and management support to improve the business environment for foreign-invested companies.

Tax reduction system for foreign investors

Basic conditions for tax reduction

No one is left behind

Gyeonggi-do gives equal importance to small and mediumenterprises (SMEs) that can cooperate with global companies. It has created a valuable component of localizing key technologies between SMEs of the province and global companies that create a mutual benefit in cooperation and joint investments.

Collectively pursuing opportunities provided by Gyeonggi-do and its foreign investors, there are various learning exchanges that can enhance the global capacities of SMEs in the province and in finding potential investors through the Global Business Matching Project. The project leverages on promoting interactions between visiting foreign companies and Gyeonggi SMEs in conducting events hosted by respective embassy commercial attaches.

Geographic Location

Gyeonggi-do is a metropolitan area surrounding Seoul, the capital of Korea. It has an accessible location going to and from Tokyo, Beijing, Osaka, Shanghai, Vladivostok, and other major Northeast Asian countries within a 2-hour flight.

Comfortable Living Conditions

Gyeonggido offers a great living quality

Gyeonggi-do offers 7 International Schools, certifieddomestically and internationally. While it also houses 12, 661 major medicalinstitutions. Other key development projects also include:

Godeok International City, a hub for business, technology, and global exchange following the relocation of the United States Forces Korea (USFK) headquarters from Seoul to Pyeongtaek City with a promising budget of $11 billion.

Korea International Exhibition Center (KINTEX), opened last April 2005 as a trade facilitation venue for both local and overseas companies. KINTEX is now the largest exhibition and convention center in Korea as well as the 4^th largest in Asia.

Pyeongtaek Port Hinterland Complex, dubbed as the fastest growing port in Korea pertaining to cargo volume has plans to expand its total berthing capacity from 62 to 79 ships by 2020.

As of 2017, there are 381, 628 foreigners residing in Gyeonggi-do. With the progressing number, Gyeonggi-do offers assistant for foreign residents in adapting to local life. It is visible through having 7 areas of welfare center that provides counseling, legal aid, and other administrative services. While a ‘Together Day’ and Multicultural Week is held every May.

Center of High-Technology Resource and Development (R&D)

Gyeonggi-do houses 33% of South Korea’s knowledge-based industries. This gains its title as the IT Powerhouse province. Its growth is credited to the dedicated and experienced R&D personnel that ensures success in the global market. As of 2015, 49% were allocated for R&D with a total investment of KRW 31 trillion with 156,000 researchers, 10, 616 organizations and 10, 473 research affiliate centers. [Gyeonggi-do Overview, p.19]

Excellent Human Resource (Labour Skills)

With the vision to become a platform that provides integrated support for science, technology, and business it has a promising number of human resources ranging from different fields: 99, 453 professionals in science and engineering, 71, 887 in the semiconductor industry, 30, 890 professionals for the display industry and 76, 985 for the automotive industry, as of 2015.

Access to Free Trade Areas

Gyeonggi-do houses the Yellow Sea Free Economic Zone(YESFEZ) that serves as a special economic zone in and undertaking over-all development functions for logistics and production, R&D, international business transactions, residential housing, education, and entertainment.

Other than that, it offers four main gateways to Korea: Incheon International Airport, Gimpo International Airport, Incheon Port, and Pyeongtaek Port (the nearest seaport to China). This makes Gyeonggi-do an ideal logistics hub of Northeast Asia.

With a population of approximately 13.43 million, Gyeonggi-do has been through a dynamic history and is now a convergence of people and culture. A nexus of global trade, it provides companies an opportunity to grow substantially and sustainably in forming new relationships and fresh ideas. As it welcomes people from all corners of the world, it also ensures economic prosperity, working hard for companies to grow locally and internationally.