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Introduction to Korea

Korea is strategically located between China, the easternmost part of Russia, and Japan. [Land size (South Korea): 99,678㎢ (2006); Capital: Seoul; Population: 48.56 million (2007); The world’s 12th economy; Per-capita GNI: $18,372 (2006); Major industrial products: Semiconductors, cars, ships, mobile communication devices, household appliances, iron/steel and chemical products; World-class businesses: Samsung Electronics, Hyundai Motor, POSCO, LG Electronics and Hyundai Heavy Industries; The world’s highest broadband penetration rate (29.1%): The world’s No.1 mobile telecom infrastructure; Democratic republic with a President (term: 5 years) through direct election.]

Investment Environment

Unrestricted tourism investment is guaranteed under the Tourism Promotion Act. Foreign investors and foreigner-invested businesses are equally treated with domestic businesses. Concerning land acquisition, all they have to do is to report relevant facts to the authorities regardless of the use. Remittance of profit out of the country is guaranteed.

Efforts are made to foster proper environment for foreigners’ investment in the tourism industry, including the expansion of the transportation network, domestic and international, and improvement of everyday living conditions for international residents.

We continue to carry out international PR and promotional activities for attraction of tourists and investors, as well as strive to train world-class human resources, and develop tourism/culture products.

Incentives for investors

Under the Foreigner Investment Promotion Act enacted in 1997, the Government has made positive efforts to attract foreign direct investment (FDI), adopting an open-door policy. In 2007, the Government set up targets focusing on attraction of FDI with high added value and adopted a series of relevant measures as follows: Tax incentives, provision of proper sites and financial support for the cases of investment expected to have a positive effect on the local economy. Effective 2007, Invest KOREA took charge of the prescreening of applicants for financial support and came up with various incentives.

Others

Other supportive measures include: free remittance of profits out of the country, tax benefits, deregulation for investments, provision of administrative support for land purchase and development of relevant zones, etc.