Skip Menu
go to contents go to top menu

Investment Support System

We introduce materials which give help to investment related to tourism investment.
Main Investment Support System Investment Support By Project Jeju Investment Promotion Zone
인쇄하기

Jeju Investment Promotion Zone

Introduction

Jeju Investment Promotion Zone is an area designated by the Governor in the Jeju Special Self-Governing Province (hereinafter referred to as "the Province"), if necessary for inducing an investment for tourism business, culture industry, welfare facilities for the aged, youth training facilities, medical institutions, etc. under Article 217 of the Special Act on the Establishment of Jeju Special Self-governing Province and the Development of Free International City (hereinafter referred to as the Special Act of Jeju).

Designation of Jeju Investment Promotion Zone

An investment shall be at least five million USD in the total cost of any project implemented in a project area to be designated as a Jeju Investment Promotion Zone, and is made to construct new facilities to run any of the following businesses.

Tourist hotel business, floating tourist hotel business, traditional Korean hotel business, general resort complex business, specialized resort business, tourist excursion ship business, tourist theater business, general amusement complex business, international conference facility business and tourist restaurant business as defined in Article 2 of the Enforcement Decree of the Tourism Promotion Act: Provided, That a golf club business among the general resort complex business and the specialized resort business shall be excluded.

Cultural industries as defined in Article 2 (1) of the Framework Act on the Promotion of Cultural Industries.

A business managing welfare establishments for the aged under Article 31 of the Welfare of Older Persons Act.

A business managing training establishments for juveniles under Article 10 (1) of the Juvenile Activity Promotion Act.

A tramway project as defined in Article 2 (5) and (7) of the Tramway Transportation Act.

A project producing electric power by using new or renewable energy as defined in Article 2 (1) of the Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy.

A foreign educational institution established under Article 182 of the Act, an autonomous school established under Article 186 of the Act, an international high school established under Article 187 of the Act and an international school established under Article 189-4 of the Act.

A medical institution established under Article 192 of the Act and a medical institution established pursuant to Article 33 of the Medical Service Act (excluding clinics, dental clinics, oriental medicine clinics and birth centers).

An educational institute referred to in subparagraph 10 (b) of attached Table 1 of the Enforcement Decree of the Building Act.

Industries that utilize advanced technology under Article 5 of the Industrial Development Act (limited to the field of electronics, electrical industry, information industry, new molecular entity, and biotechnology).

A research and development project regarding health and medical service technology as defined in Article 2 (1) 1 of the Health and Medical Service Technology Promotion Act, and a service business of research and development assisting research and development regarding health and medical service technology through the supply of technology information, consulting, test, analysis, etc.

A food manufacturing business or beverage manufacturing business among factories as defined in Article 2 (1) of the Industrial Cluster Development and Factory Establishment Act.

An area that an investor wants.

An area that has advantages in promoting the inducement of investments and satisfies conditions.

An area that meets the following conditions;

  1. The area shall be one on which amusement park facilities or the district unit plan has been decided pursuant to the National Land Planning and Utilization Act.
  2. The entity that intends to implement the development project for the whole area as defined in subparagraph 1 shall be the State, a local government, a public institution, a local public enterprise or the Development Center or a corporation in which the Development Center has invested.
  3. The entity as defined in subparagraph 2 shall possess the ownership of or rights to use at least 2/3 of the land in the relevant area.

Source : Article 217 of the Special Act of Jeju; Article 36 of the Enforcement Decree of the Special Act of Jeju.

Business for Jeju Investment Promotion Zone

Jeju Investment Promotion Zone encourages investment made to construct new facilities to run tourism business, cultural industries, welfare establishments for the aged, training establishments for juveniles, a tramway project, a project producing electric power, foreign educational institutions, medical institutions, industries that utilize advanced technology, and food manufacturing business.

Jeju Investment Promotion Zone Designation Subject
Jeju Investment Promotion Zone Designation Subject
Content Related Law
Tourism Business
  • A tourist hotel business, floating tourist hotel business, Korean traditional hotel business, general resort complex business, specialized resort business, tourist excursion ship business, tourist theater business, general amusement complex business, international conference facility business or tourist restaurant business: Provided, That a golf club business shall be excluded.
  • Article 2 of the Enforcement Decree of the Tourism Promotion Act
Cultural Industries
  • Industries related to movies or video materials
  • Industries related to music or games
  • Industries related to publishing, printing or periodicals
  • Industries related to broadcast pictures
  • Industries related to cultural properties
  • Industries related to cartoons, characters, animation, edutainment, mobile cultural content, design (excluding industrial designs), advertising, performance, artworks or craftworks, etc.
  • Article 2 (1) of the Framework Act on the Promotion of Cultural Industries
Welfare Facilities for the Aged
  • Residential welfare facilities for older persons
  • Medical welfare facilities for older persons
  • Leisure welfare facilities for older persons
  • Commuting-system welfare facilities for older persons at home
  • Specialized agencies for the protection of older persons
  • Article 31 of the Welfare of Older Persons Act
Facilities for Youth Activities
  • Youth training facilities: Youth training center, youth training establishment, house of youth culture, specialized youth facility, youth camping ground, youth hostel
  • Facilities for juveniles’ use: Facilities other than training facilities, which can be provided for youth activities and healthy purposes for juveniles within the purposes of their establishment
  • Article 10 (1) of the Juvenile Activity Promotion Act.
Cableway and Tramway Business
  • The term "cableway" means transporting people or cargo by operating a tram suspended from a wire rope installed in the air.
  • The term "tramway business" means business which transports people or cargo using tramway (excluding exclusive tramways) and makes profits in return.
  • Article 2 (5) and (7) of the Tramway Transportation Act.
Electricity Generation Business Using New Energy and Renewable Energy
  • Solar energy, bio energy converted from biological resources, wind power, water power, fuel cells, energy from liquefied or gasified coal, marine energy, energy from gasified heavy residual oil, geothermal energy, hydrogen energy, etc.
  • Article 2 (1) and (2) of the Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy.
Foreign Educational Institutions
  • Foreign educational institution, autonomous school, international high school, international school
  • Article 182 of the Act
Foreign Medical Institutions
  • General hospital, hospitals, dental hospitals, and convalescence hospitals
  • Article 192 of the Act
Education and Training Institutions
  • Education and training institutions under attached Table 1 (10) 2 of the Enforcement Decree of the Building Act
  • Article 182 of the Act
Advanced Technology and Products
  • To facilitate the sophistication of industrial structure in line with the mid-to long-term development outlook, the Minister of Trade, Industry and Energy shall determine the scope of advanced technologies and advanced products and make a public announcement thereof: Provided, Only for electronics, electricity, information, new materials and biotechnology.
  • Article 5 of the Industrial Development Act
Health and Medical Service Technology R&D
  • The term "health and medical service technology research and development activities" means activities supported by budget or fund for research and development of health and medical service technology.
  • Article 2 (1) 8 of the Health and Medical Service Technology Promotion Act
Food and Beverage Manufacturing Industry
  • A food manufacturing business or beverage manufacturing business among factories as defined in Article 311 (2) of the Industrial Cluster Development and Factory Establishment Act.
  • Article 2 (1) of the Industrial Cluster Development and Factory Establishment Ac

Source : Jeju Special Self-governing Province. http://ind.jeju.go.kr

Jeju Special Self-governing Province Investment Promotion Ordinance

The ordinance aims at improving foreign investment in both home and overseas in accordance with Articles 166, 168, 219, and 225 of the Special Act for Jeju and Article 14 of the Foreign Investment Promotion Act.

Under the ordinance the following entities or business shall be funded or supported.

Corporations that shall move into the Jeju Science Park or Jeju Investment Promotion Zone.

Corporations that has at least 30 percent of foreign investment or foreign-invested companies whose largest shareholder is a foreign-invested company.

Cultural industries, information and communications technology industry, knowledge-based industry, business support services, high technology industry, and telemarketing business.

Support Services

Moving Subsidy

Where a company moves from the capital area into the Province, up to 45 percent of the normal purchase price or rental charges of land shall be funded; Provided, It has done business at least for 3 years and th number of workers at ordinary times is at least 30.

Where a company moves from other provinces to into the Province, up to 25 percent of the normal purchase price or rental charges of land shall be funded; Provided, It has done business at least for 3 years and th number of workers at ordinary times is at least 20.

Facility Investment Subsidy

Where a company moves from the capital area into the Province, up to 15 percent of facility investment shall be funded.

Where a company moves from other provinces into the Province, up to 10 percent of facility investment shall be funded.

Education and Training Subsidy

Where a company hires at least new 20 residents of the Province and train them, at least 1 million KRW shall be funded per employee per month up to for 6 months; Provided, The ceiling shall be less than 300 million KRW.

Wage Subsidy

Where a company hires at least new 20 residents of the Province, at least 1 million KRW shall be funded per employee per month up to for 6 months; Provided, The subsidy shall be available from the 21st new employee onwards, and the ceiling shall be less than 300 million KRW.

Where a foreign-invested company hires national meritorious men or aged citizens, at least 1 million KRW shall be funded per employee per month up to for 6 months; Provided, The subsidy shall be available from the 21st new employee onwards, and the ceiling shall be less than 300 million KRW.

Infrastructure Support Services

Infrastructure such as roads, water facilities, sewerage system, communication, energy Supplying facilities, etc. shall be funded; Provided The ceiling shall not exceed the budget.

Special Support for Large Scale Investments

Where the facility investment such as construction, purchase of equipment, and infrastructure exceeds 300 million KRW or the number of workers at ordinary times exceeds 50 for a day, the investment company shall get special grant; Provided, The ceiling shall be less than 5 billion KRW, up to 5 percent of total investment.

Where a telecommunications provider or telemarketing vendor rents an office building in the zones and hires new workers of the Province.

Where at least 30 workers are hired, the rental charge of a building shall be less than 50 percent funded; Provided, the ceiling shall be less than 500 million KRW up to for 3 years.

Where at least 50 workers are hired, the initial purchase of equipment shall be less than 40 percent funded up to 400 million KRW, and where at least 100 are hired, it shall be less than 50 percent funded up to 500 million KRW.

Improvement of Living Conditions for Foreigners

The establishment or extension of foreign schools, the construction of a housing complex for foreigners, support services business such as medical institutions or nursery schools for foreigners, etc. shall be funded within the budget.

Housing For Foreigners

When it comes to employees working for foreign investment business, foreign college faculty or employees, foreign medical service institution(only homeless people), it supports within the scope of private house construction quota.

People working at foreign-invested companies, foreign educational institutions/universities, and foreign medical institutions or pharmacies for foreigners shall be eligible for private housing; Provided, the ceiling shall be less than 10 percent of the total private houses.

Source : Jeju Province. www.jeju.go.rk

Investment Incentives

A investor who invests in a Jeju Investment Promotion Zone shall have various incentives such as tax/rental charges reductions or exemptions, favorable conditions for leasing of the State and public-owned property, etc.

Incentives for Jeju Investment Promotion Zone
Incentives for Jeju Investment Promotion Zone
Incentives Related Laws
Tax Reductions and Exemptions Locals Corporation that shall move into the zones and invests at least 5 million USD1) National tax2) Customs3) 100%/3 yrs.
  • icles 121-2 (2), (4), and (5) and 121-3 of the Restriction of Special Taxation Act
  • Articles 116-15 (1) and (3) and 116-2 (17) and (18) of the Enforcement Decree of the above Act
Corporate t ax / income tax 5 yrs. (100%/3 yrs. & 50%/2 yrs.)
Local tax Acquisition tax 100%
Property tax 5 yrs. (100%/3 yrs. & 50%/2 yrs.)
Operator of a development project who invest at least 10 million USD National tax Corporate t ax / income tax 5 yrs. (50%/3 yrs. & 25%/2 yrs.)
  • Article 121-9 (2) and (3) of the Restriction of Special Taxation Act
  • Article 11 of the Ordinance of Tax Exemptions for Jeju Special Self-governing Province
Local tax Acquisition tax 100%
Property tax 100%/10 yrs.
Foreigners Corporation that shall move into the zones and invests at least 20 million USD National tax Customs4) 100%/5 yrs.
  • Article 121-2 (2) of the Restriction of Special Taxation Act
  • Article 11 of the Ordinance of Tax Exemptions for Jeju Special Self-governing Province
Corporate t ax / income tax 7 yrs. (100%/5 yrs. & 50%/2 yrs.)
Local tax Acquisition tax / property tax 100%/15 yrs.
Operator of a development project who invests at least 10 million USD or 50 percent or the total cost is at least 100 million USD6) National tax Customs 100%
  • Article 116-2 (7) of the Restriction of Special Taxation Act
  • Article 11 of the Ordinance of Tax Exemptions for Jeju Special Self-governing Province
CCorporate t ax / income tax5) 5 yrs. (100%/3 yrs. & 50%/2 yrs.)
Local tax Acquisition tax / property tax 100%/15 yrs.
Permission for Casino Business Notwithstanding Article 21 of the Tourism Promotion Act, the Governor may permit a casino business to any person who intends to obtain permission for casino business; if the person meets all the following requirements prescribed in the Article 171-6 (1) 1, 2, and 3.
  • - Article 171-6 of the Act
Financial Support The Governor shall fund a loan for the purchase price of land to be leased to companies moving into the Jeju Investment Promotion Zone and the exemption and reduction of the rent for land, and offer other financial support required for the development projects or education and training subsidy.
  • Article 219 of the Act
NRental Charges for State and Public Property The lease term may be set up to 50 years, where land owned by the State or the Province is leased.
  • Article 220 of the Act

1) Tourist hotel, floating tourist hotel, traditional Korean hotel, specialized resort, general resort complex, general amusement complex, tourist excursion ship, tourist theater business, international conference facilities, tourist restaurant business, etc.
2) Where the sum of the reduced or exempted income tax or corporate tax exceeds the sum of the following amounts, the ceiling on the tax reduction or exemption shall be such sum:
 a) 50 percent of the cumulative investments;
 b) The lesser of the following:
  (1) Number of workers at ordinary times in the relevant taxable year x ten million KRW;
  (2) 20 percent of the cumulative investments.
3) Imported capital goods
4) Including special consumption tax and value-added tax
5) Where the sum of the income tax or corporate tax reduction or exemption exceeds the sum of the following amounts, the ceiling on the tax reduction or exemption shall be such sum:
 a) A ceiling based on the amount of investment under the following classifications:
  (1) 70 percent of the cumulative foreign investments for corporations that move into the zone;
  (2) 50 percent of the cumulative foreign investments for operators of a development project;
 b) A ceiling based on employment which is the lesser between the following amounts:
  (1) Number of workers at ordinary times in the relevant taxable year × ten million KRW;
  (2) 20 percent of the cumulative foreign investments.
6) Tourist hotel, floating tourist hotel, traditional Korean hotel, specialized resort, general resort complex, general amusement complex, international conference facilities, tourist condominium, youth training facilities, etc.