South Korean Pest

Moreover, President Lee is a strong devotee of free trade agreements (Fats) between foreign countries, and South Korea now has Fats with the European Union, the united States of America, and the SEAN countries. The current president Implemented new legislation to make South Korea more attractive for foreign investors. It will, for example, lower corporate tax rates and reduce administrative restrictions on business operations and investment. Furthermore, South Korea has a number of incentives to make foreign investment more at-attractive. These incentives are: Tax support, Cash grant, Site location support, and other sup-port. A.

Tax support When foreign companies meet certain requirements, Income and corporate tax from earned Income, business Income, dividend Income, technology payments and custom du-titles on capital goods can be either reduced or be subject to dispensation In accordance with the Restriction of Special Taxation Act. B. Cash grant When a foreign investor meets certain criteria, local and/or national government can offer a cash grant when the investor wants to build a new plant for example. These criteria are e. G. The creation of jobs, the location of the new plant, if the investment intervenes with lo-cal investment etc. C. Site location

South Korea provides so called Free Investment Zones (Fizz). These are to attract foreign Investors/companies. There are two types of Fizz: Complex and Individual. The complex type Is for small and medium sized firm wear as the individual type Is for large corpora-tools with large Investments. The requirements are to be found In the appendices. When a foreign company purchases or leases a piece of land or real-estate owned by the gob-ornament of South Korea, the company can apply for reduction or dispensation of the rental payment. However, the company must meet certain criteria. These are also to be found in the appendices.

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