Jeju Future Value Creation Global Leading Company Invest in the Future of Jeju JDC Project Guide & Investment Proposal
Invest in the Future of Jeju 02 03 JDC Project Guide & Investment Proposal Contents Part 01. Investment Environment of Jeju Special Self-governing Province 04 1. General Status of Jeju 06 2. Living Environment of Jeju 08 3. Educational Environment of Jeju 09 Part 04. JDC Project Investment 34 1. Route 330 36 (Jeju Innovation Growth Center) 2. Jeju Advanced Science & 44 Technology Complex 1 3. Jeju Advanced Science & 52 Technology Complex 2 4. English Education City 58 5. Jeju Healthcare Town 66 Part 02. Investment Attractiveness of Jeju Special Self-governing Province 10 1. Jeju Investment Promotion District 12 2. Foreign Investment Zone 16 3. Corporate Relocation Incentives 20 4. Local Investment Promotion 24 Subsidy Support Part 03. Jeju Free International City Development Center (JDC) 28 1. About Jeju Free International City 30 Development Center (JDC) 2. Main Projects of Jeju Free 32 International City Development Center (JDC) Jeju, where people and nature coexist. Jeju is a dream city, creating solid infrastructures in various fields ranging from advanced science, education, medical care, tourism, and environment. JDC builds the future, 'Jeju, a global high-tech community'
Invest in the Future of Jeju JDC Project Guide & Investment Proposal 1. General Status of Jeju 2. Living Environment of Jeju 3. Educational Environment of Jeju Part 01 Investment Environment of Jeju Special Self-governing Province
Invest in the Future of Jeju Part 01. Investment Environment of Jeju Special Self-governing Province 06 07 JDC Project Guide & Investment Proposal 1. General Status of Jeju Special Self-Governing Province to which Differential Exemptions Are Applied Based on the Jeju Special Act - Designated Jeju as a free international city in April 2002 - Jeju Special Self-Governing Province constituted in July 2006, securing autonomy in all areas except national defense, diplomatic, and judicial affairs - Designated leading projects, tax reduction and exemption, etc. for domestic and foreign investors General Status Area About 1.7 times of Hong Kong and 2.5 times of Singapore Population As of 2021 697,000 * Incl. 22 thousand foreigners Industrial Structure * Data Source: Bank of Korea, 2019 Number of Tourists As of 2021 120.08million GRDP per Capita As of 2020 Jeju KRW 29.144million Economic Growth Rate Employment Rate Population Growth Rate (Compared to 2020) As of 2021 National Average 108.22 (Base Year: 2020 = 100) As of 2020 National Average KRW 37.389million Consumer Price Index 109.59 Nominal Share of Gross Regional Domestic Product & Gross Value Added As of 2021 Jeju 0.0% China Korea Shanghai Jeju Japan Yantai Dalian Osaka Taipei Shenyang Qingdao Jinan Nanjing Ningbo Hangzhou Suzhou Seoul Tianjin Beijing Hong Kong A Hub of Northeast Asia, Located at the Center of Korea, China, and Japan It is a free international city that allows visa-free entry (for 180 countries) to around 60 domestic/foreign cities with a population of 1 million or more within 2 hours of flight. Tokyo Service 76.1% Others 2.2% Manufacturing 3.9% Construction 9.9% Agriculture, Forestry,&Fishery 8.8% Gross Regional Domestic Product (GRDP) 20 trillion in 2019 19 trillion in 2020 Nationwide 61.4% Nationwide 2.1% Jeju 67.4% Jeju 6.6% 0.23% Nationwide
Invest in the Future of Jeju Part 01. Investment Environment of Jeju Special Self-governing Province 08 09 JDC Project Guide & Investment Proposal 2. Living Environment of Jeju 3. Educational Environment of Jeju Natural Environment Educational Environment - Branksome Hall Asia - SJA Jeju - NLCS Jeju - KIS Jeju As of 2022 4 international schools Around 4,600 students enrolled Public Libraries 21 Art Galleries & Museums 78 Other Cultural Facilities 240 *Source : Jeju-do As of 2021 339 cultural facilities Cultural Environment Medical Environment As of 2021 898 medical facilities *Source : Jeju-do School Status of Jeju Special Self-Governing Province in 2021 Kindergarten Designated as UNESCO Biosphere Reserve in 2002 Certified as UNESCO Global Geopark (In 2010, 2014, and 2022) *Korea’s first UNESCO Global Geopark Conference held (December 2021) Triple Crown in Natural Science Field by UNESCO Number of Students per Teacher 15.15 National average : 14.83 (as of 2021) Student Satisfaction with School Life 61.0% National average : 43.0% (as of March 2022 / 1st Place : Gyeongnam : 67.3% / Incl. online learning) Number of Students per Class 23.7 National average : 22.1 (as of 2021) Educational Achievement 47.4% National average: 40.2% (as of 2020) 2nd in Country Registered as UNESCO World Natural Heritage Site in 2007 Hospitals & Clinics 474 Nursing Homes 10 Oriental Medical Clinics 194 Dental Clinics 229 General Hospitals 5 Number of Schools 123 Number of Students 6,277 Number of Teachers 433 Number of Schools 4 Number of Students 4,800 Number of Teachers 634 Number of Schools 4 Number of Students 18,571 Number of Teachers 925 Number of Schools 45 Number of Students 19,989 Number of Teachers 1,585 Number of Schools 52 Number of Students 33,439 Number of Teachers 3,307 Middle School International School Elementary School High School University Number of Schools 113 Number of Students 41,328 Number of Teachers 2,887
Invest in the Future of Jeju 1. Jeju Investment Promotion District 2. Foreign Investment Zone 3. Corporate Relocation Incentives 4. L ocal Investment Promotion Subsidy Support Part 02 Investment Attractiveness of Jeju Special Self-governing Province JDC Project Guide & Investment Proposal
Invest in the Future of Jeju Part 02. Investment Attractiveness of Jeju Special Self-governing Province 12 13 JDC Project Guide & Investment Proposal 1. Jeju Investment Promotion District The only system in Korea supporting domestic and foriegn capital investment in Jeju. * Terms of Condition : For new domestic and foreign investment for business management by investing a certain amount or more in designated industry. Designated Industries (Areas) 28 industries Desired area Applicable Subjects New investment Domestic and foreign Overview of Jeju Investment Promotion District Total Investment Tourism-related businesses USD 20M or more Other businesses : USD 5M or more ※ Land purchase cost, construction cost, survey/investigation cost, design cost, equipment purchase cost, etc. Pre-implementation - Evidence to to confirm the intention to conduct target business in accordance with individual legal regulations : authorization, permission, approval, reports etc. - Additional designation can be made by the Provincial Governor given the requirements (mentioned above) of legal regulations are equipped. ※ Any other authorities apart from the Provincial Governor are not allowed to designate Investment Promotion District in advance. Individual Type Designated Industries (Areas) 28 industries Areas where there is a decision on an amusement facility or a district unit plan Applicable Subjects Development project operators: State, local government, public institution, local corporation, Jeju Free International City Development Center (JDC), JDCinvested corporation Complex Type Total Investment KRW 100B or more Pre-implementation Secure of ownership or the right to use 2/3 of the premise by the operator. 28 Industries (Businesses) Applicable to Jeju Investment Promotion District - Tourism & hotel, water sports tourism & hotel, Korean traditional hotel(excl. casinos and bonded warehouses among auxiliary facilities), general resort, specialized resort(excl. condominiums and golf courses), sightseeing cruise ship, tourism & performance hall, general amusement facility, international conference facility, tourism & restaurant, marina - Cultural industry, elderly welfare facility, youth training facility, railway, electricity production using new and renewable energy - Autonomous school, international high school, foreign educational institution, international school, education center(training institute) - Medical institutions(excl. clinics, dental clinics, oriental medicine clinics, maternity center), health and medical technology R&D and R&D service - High-tech utilization, F&B manufacturing (factories), cosmetics manufacturing, R&D(limited to high-tech application industry, cosmetics manufacturing, F&B manufacturing)
Invest in the Future of Jeju Part 02. Investment Attractiveness of Jeju Special Self-governing Province 14 15 JDC Project Guide & Investment Proposal Reduction of Various Charges Type Reduction Supports Development Charge Exemption Article 4 (Attachment 1 Item 4-d) of the Enforcement Decree of the Restitution of Development Gains Act Farmland Conservation Charge 50% Article 52 (Attachment 2 Item 3-f) of the Enforcement Decree of the Farmland Act Alternative Greenland Development Cost 50% Article 16-3 (Attachment 2 Item 6-a) of the Enforcement Decree of the Grassland Act Alternative Forest Resource Development Cost 50% Article 23 Section 1 (Attachment 5 Item 2-n) of the Enforcement Decree of the Mountainous Districts Management Act Public Waters Occupancy/ usage fee Exemption Article 13 Section 1 Clause 8 of the Public Waters Management and Reclamation Act Sewerage Causative Charge 15% Article 57 Section 4 of the Jeju Special Self-Governing Province Sewerage Use Ordinance National/Public Property Lease Lease Period 50 years for construction of permanent facilities or lease (renewal applicable) Subjects & Criteria for Reduction - 75% reduction for residing companies in Investment Promotion District. - 20 year instsallment when disposed. Related Provisions Article 165 of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City ※ The lease of national/public property and reduction can only be applied when the investment project has been designated as Investment Promotion District through legal process and prior consultation with the relevant department. ※ Please contact Investment Promotion Division at Jeju Provincial Office for details. ※ Checking of relevant regulations is recommended when conducting business as investment policies may change. Investment Promotion District Designation Process STEP 1 Application for designation STEP 2 Establishment of a designation plan and collection of opinions and feedback STEP 3 Deliberation by the Provincial Comprehensive Planning Council STEP 4 Designation / Notification (Provincial Governor) STEP 5 Management of Investment Promotion District (Provincial Governor) Local Tax Individual type 75% reduction for 5 years from the date of designation Complex type / Residing Companies 75% reduction for 5 years from the date of acqusition of real estate or start of residence. ※ Application for reduction can be made when purchasing land. Details of Reduction Article 24-2 of the Jeju Special SelfGoverning Province Tax Exemption Ordinance Related Provisions Acquisition Tax Individual Type 75% reduction for 10 years from the date of addition Complex Type/ Residing Companies 75% reduction for 10 years from the date of addition or the first taxation. Details of Reduction Article 24-2 of the Jeju Special SelfGoverning Province Tax Exemption Ordinance Related Provisions Property Tax Tax Reduction National Tax Article 121-9 of the Restriction of Special Taxation Act Related Provisions Residing companies Exemption for 3 years and 50% reduction for 2 years thereafter Development project operator 50% reduction for 3 years and 25% reduction for 2 years thereafter Details of Reduction Corporate Tax & Income Tax Article 121-11 of the Restriction of Special Taxation Act Related Provisions Capitla goods imported (by 31st, Dec, 2023) for direct use in dutyfree project. Details of Reduction Tariff ※ Residing Companies - Individual Type: Investment companies in the area desired by the investors - Complex Type: Investment companies residing in the area favorable to facilitating investment
Invest in the Future of Jeju Part 02. Investment Attractiveness of Jeju Special Self-governing Province 16 17 JDC Project Guide & Investment Proposal 2. Foreign Investment Zone ※ Please contact Investment Promotion Division at Jeju Provincial Office for details. ※ Checking of relevant regulations is recommended when conducting business as investment policies may change. Overview of Foreign Investment Zone *Basis for Support : Article 18 to 20 of the Foreign Investment Promotion Act Overview Attraction of foreign investment related SMEs Requirements Lease Fee Reduction 30% or more / KRW 100M or more of foreign investment Applied in porportion to the total investment Requirements Lease Fee Reduction Designation deliberately made when reached the minimum amount of investment per industry (as follows) - [USD 30M] Manufacturing, IT, etc. - [USD 20M] Tourism development, etc. - [USD 10M] Complex logistics, etc. - [USD 2M] R&D facilities Up to 100% reduction ※ Decision made by Foreign Investment Committee in consideration of economic effect. Location Industrial Complex (national and general) Overview Designated through application from individual (investor) Location Applied area Complex Type Individual Type Overview Attraction of R&D projects and sevices with high added value. Requirements Lease Fee Reduction - 30% or more of foreign investment - Minimum number of employees [R&D] 5 or more [Others] 15 or more For residing contract - 10 years of reduction for land lease - 5 years for rent (builiding) Subsidy for Rent (building lease) - 50% of rent (based on national and local standards) Location Designated area (building) Service Type ※ Local Tax (Acquisition Tax / Property Tax): 85% (10-year) reduction – Individual type, complex type residing companies, investment companies in the field of new growth engine and source technology Foreign Investment Tax Reduction under the Restriction of Special Taxation Act, etc. Applicable Subjects Details of Tax Reduction Related Regulations Foreign Investment Companies 86% reduction for 10 years of acquisition and property taxation for commercial property. Article 121-2 Section 1 of the Restriction of Special Local Taxation Act Article 11 of the Jeju Special SelfGoverning Province Tax Exemption Ordinance Tariffs, individual consumption tax, and value-added tax of capital goods Exemption for 5 years Article 121-3 Sections 1 & 2 of the Restriction of Special Taxation Act Foreign Engineers 50% reduction of earned income tax (for 5 years) Article 18 of the Restriction of Special Taxation Act Foreign Workers 19% single tax rate applicable (for 5 years) Article 18-2 of the Restriction of Special Taxation Act
Invest in the Future of Jeju Part 02. Investment Attractiveness of Jeju Special Self-governing Province 18 19 JDC Project Guide & Investment Proposal Scope of Target Project for Tax Reduction of Foreign Investment Companies *Legal Basis : Article 121-2 of the Restriction of Special Taxation Act and the Restriction of Special Local Taxation Act, Article 116-2 of the Enforcement Decree of the same Act Type Target Project (Investment Conditions, etc.) Related Regulations Target technology by field of new growth engine and source technology, material processing technology directly related to new growth - [USD 2M] Factory facility installation and operation Attachment 7 of the Enforcement Decree of the Restriction of Special Taxation Act and Attachment 14 of the Enforcement Regulation of the same Act Companies residing in Foreign Investment Zone (individual type), companies residing in Jeju Advanced Science & Technology Complex and Jeju Investment Promotion District - [USD 30M] Manufacturing, IT, etc. - [USD 20M] Tourism development, etc. - [USD 10M] Complex logistics, etc. - [USD 2M] R&D facilities Article 18 Section 1 Clause 2 of the Foreign Investment Promotion Act Development project operators in Jeju Investment Promotion District - Investment amount of USD 10M or more, or a total development project cost of USD 100M or more with 50% or more of foreign investment Article 162 of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City Companies residing in Foreign Investment Zone (complex type) - Investment amount of USD 10M or more, or a total development project cost of USD 100M or more with 50% or more of foreign investment Article 18 Section 1 Clause 1 of the Foreign Investment Promotion Act Cash Grants for Foreign Investments *Basis for Support: Article 14-2 of the Foreign Investment Promotion Act Type Details Applicable Subjects (30% or more of foreign investments) ① [New Growth Engine] Investment in material processing technology related to source technology and new growth technology ② [High-tech] New establishment/expansion of factories, etc. for high-tech and high-tech product business ③ [Material/Parts] Textile, pulp, chemical, medical, etc. fields subject to the Act on Special Measures for Strengthening the Competitiveness of Materials, Components, and Equipment Industries ④ [Job Creation] In the case of employment of 300 or more in manufacturing, construction, information service, etc.; 200 or more in wholesale/retail, accommodation, etc.; 100 or more in other personal service businesses; and 50 or more in real estate businesses ⑤ [R&D Center] research institutes with 5 or more dedicated research personnel for new growth engine technology projects, etc. ⑥ [Regional HQ] In the case of a global company establishing a base for 2 or more overseas corporations ⑦ [Others] In the case of regional specialized industries or metropolitan cooperative industries with a contribution to local job creation and economic development recognized [Special Act on Balanced National Development] Supported Items Article 20-2 of the Enforcement Decree of the Foreign Investment Promotion Act Support for the installation of factory facilities or research facilities ① Land/building purchase cost, lease fee, construction cost, capital goods and research equipment purchase cost, installation cost of infrastructure such as electricity/communication facilities ② Employment Subsidy & Education & Training Subsidy Foreign Investment Support in accordance with the Jeju Special Self-Governing Province Investment Promotion Ordinance Definition of Foreign Investment Company Foreign investment companies or non-profit organizations established under Article 2 Section 1 Clause 6 of the Foreign Investment Promotion Act, with foreign investment ratio of 30% (or more), or having a foreign national as a largest shareholder. Consulting Cost Support for Foreign Investors or Foreign Investment Companies Consulting Cost - Consultation cost for foreign investors, companies, etc. (amount objectively confirmed for contract) - Considered within 1% (limited to KRW 100M) of the confirmed foreign investment * Financial support given when 10% or more of planned investment is implemented. Facility Investment Subsidy Initial Project Cost 10% of the facility investment amount in the case of construction (incl. purchase and lease cost, excl. residential use), purchase of facility equipment, installation of infrastructure for facility investment Up to KRW 50M within 2 years from the start date of the business with more than 30 full-time employees. Settlement Subsidy Special Support for Foreign Investment Companies in New Growth Engine Industries 25% of sale, purchase, and lease when seling, purchasing or leasing. Export Companies Additional support within the 20% each of settlement and facility subsidies for companies with more than USD 1M in export in the previous year of the year of subsidy application Logistics Cost Within 50% of the logistics cost for 2 years (limited to KRW 200M) in the case of transporting goods outside of Jeju for the purpose of shipping finished products produced in the province and transporting materials New & Renewable Energy Facility Cost Within 30% of the facility cost (limited to KRW 200M) in the case of installation of new and renewable energy facilities used for self-sufficiency on the site of HQ, factories, or research institutes Employment Subsidy In the case of new establishment or expansion of business sites or factory facilities and employing locals as full-time employees with a number of employments exceeding 20, KRW 500,000 per month for 12 months per person (limited to KRW 300M) Foreign Investment Companies in the New Growth Engine Industries ※ Please contact Investment Promotion Division at Jeju Provincial Office for details. ※ Checking of relevant regulations is recommended when conducting business as investment policies may change. Type Details State/Local Government Financial Fund Sharing Ratio 6:4 for land purchase cost and lease fee, 5:5 for Employment Subsidy & Education & Training Subsidy * 10% increase in national expense applicable for high-tech and R&D in nonmetropolitan region. *Legal Basis : Jeju Special Self-Governing Province Investment Promotion Ordinance
Invest in the Future of Jeju Part 02. Investment Attractiveness of Jeju Special Self-governing Province 20 21 JDC Project Guide & Investment Proposal 3. Corporate Relocation Incentives Applicable Subjects Relocation of Companies in Metropolitan Area, & New/Expanding Companies Relocation of Companies Outside the Metropolitan Area Investment in Cultural Industries / Information & Communication Industries Other Supports Support for Investment Companies in accordance with Jeju Special Self-Governing Province Investment Promotion Ordinance Legal Basis : Jeju Special Self-Governing Province Investment Promotion Ordinance Relocation of Companies in Metropolitan Area, & New/Expanding Companies Employment Subsidy Education & Training Subsidy Brokerage Fee KRW 500,000 per month per person in the case of exceeding 5 local employments (in 12 months, limited to KRW 100M) ※ No overlapping support with Local Investment Promotion Subsidy KRW 500,000 per month per person in the case of exceeding 10 local employments (in 6 months, limited to KRW 100M) Within 50% of the brokerage fee in the case of selling, purchasing, or leasing land, etc. Special Support for Relocation of Companies in Metropolitan Area 3% additional support for facility subsidy for companies in new growth engine industries Facility Subsidy Within 30% of the facility cost (limited to KRW 200M) in the case of installation of new and renewable energy facilities used for self-sufficiency on the site of HQ, factories, or research institutes New & Renewable Energy Facility Cost Additional support within 20% of both settlement and facility subsidies for companies with record of more than USD 1M export in year prior to application. Export Companies Within 50% of the logistics cost for 2 years (limited to KRW 200M) in the case of transporting goods outside of Jeju for the purpose of shipping finished products produced in the province and transporting materials Logistics Cost Support for constructing or leasing accommodation for employees of relocating companies with 50 or more full-time employees (limited to KRW 200M) Employee Housing Expenses Special Support for Companies Outside the Metropolitan Area Additional support within the 20% each of settlement and facility subsidies for companies with more than USD 1M in export in the previous year of the year of subsidy application Export Companies Within 50% of the logistics cost for 2 years (limited to KRW 200M) in the case of transporting goods outside of Jeju for the purpose of shipping finished products produced in the province and transporting materials Logistics Cost Within 30% of the facility cost (limited to KRW 200M) in the case of installation of new and renewable energy facilities used for selfsufficiency on the site of HQ, factories, or research institutes New & Renewable Energy Facility Cost Support for constructing or leasing accommodation for employees of relocating companies with 50 or more full-time employees (limited to KRW 200M) Employee Housing Expenses Companies Outside the Metropolitan Area Type Companies Outside the Metropolitan Area Requirements Companies with 1 year or more of business performance and 20 or more full-time employees outside the metropolitan area (100% of provincial expense) ※ However, in the case of businesses operated by investment business sites being regional specialized industries, knowledge service industries, or new growth engine industries; companies with 10 or more full-time employees Settlement Subsidy Within 25% of the land purchase price Facility Investment Subsidy Within 10% of the facility investment Employment Subsidy KRW 500,000 per month per person in the case of exceeding 10 local employments (in 12 months, limited to KRW 100M) Education & Training Subsidy KRW 500,000 per month per person in the case of exceeding 10 local employments (in 6 months, limited to KRW 100M) Brokerage Fee Within 50% of the brokerage fee in the case of selling, purchasing, or leasing land, etc. Investment in Cultural Industries / Information & Communication Industries Type Companies Outside the Metropolitan Area Requirements Cases where a company operating in cultural industries and information or technology industries leases (or purchases) a building and employs locals, etc. as full-time Building Lease Fee Within 50% for 3 years in the case of exceeding 5 local employments (limited to KRW 500M) Facility Equipment Purchase Cost 30% of the initial purchase cost in the case of exceeding 5 local employments (limited to KRW 300M) 40% of the initial purchase cost in the case of exceeding 5 local employments (limited to KRW 400M) 50% of the initial purchase cost in the case of exceeding 5 local employments (limited to KRW 500M) Employment Subsidy KRW 1M of Employment Subsidy per month per person in the case of exceeding 10 local employments (in 6 months, limited to KRW 300M) Education & Training Subsidy KRW 1M of Education & Training Subsidy per month per person in the case of exceeding 20 local employments (in 6 months, limited to KRW 300M)
Invest in the Future of Jeju Part 02. Investment Attractiveness of Jeju Special Self-governing Province 22 23 JDC Project Guide & Investment Proposal Companies implementing investment after signing an investment agreement Requirements Support for lease fee for 1 year for the business preparation office before the operation of the investment project Details Investment Preparation Support Office Lease Fee Type ※ Subsidy support for Companies Outside the Metropolitan Area, cultural industries / information & communication industries, and foreign investment companies, as well as special support for large-scale investment companies, are paid after deliberation and decision by the Jeju Special Self-Governing Province Private Investment Attraction Committee Other Supports Subsidy Application Process in accordance with the Jeju Special Self-Governing Province Investment Promotion Ordinance PROCESS 1 Company Jeju Prior consultation and MOU signing PROCESS 2 Company Jeju Subsidy support application, feasibility analysis, business due diligence, etc. PROCESS 3 Jeju Provincial Private Investment Attraction Committee Determination of support through deliberation and decision PROCESS 4 Jeju Company Support for 100% of settlement subsidy and 70% of facility investment subsidy PROCESS 5 Jeju Company Support for 30% of facility investment subsidy upon completion of the investment PROCESS 6 Jeju Company Settlement review and follow-up management National Tax (Article 63 and 63-2 of the Restriction of Special Taxation Act) Exemption for 5 years and 50% reduction for 2 years thereafter Jeju-si Relocation of corporations and/or factories of companies with business performance for 3 years or more (2 years for SMEs) in Metropolitan Overcrowding Control Area ※ Corporation transfer or conversion to noncorporate use in Metropolitan Overcrowding Control Area must be carried out within 2 years from the date of start of business by relocating the corporation Applicable Subjects Exemption for 7 years and 50% reduction for 3 years thereafter Seogwipo-si Corporate Tax Exemption ※ Deferment of tax for 5 years on the difference in transfer caused by transferring buildings and lands for relocation, and equal taxation for 5 years thereafter Local Tax Relocation of corporations Relocation of factories Relocation of export company corporations (factories) Relocation of new growth manufacturing corporations (factories) Applicable Subjects Real estate and machinery Exemption Targets Exemption of Acquisition Tax Article 79 Sections 1 & 2 of the Restriction of Special Local Taxation Act Article 80 of the Restriction of Special Local Taxation Act Related Provisions Relocation of corporations Relocation of export company corporations (factories) Relocation of new growth manufacturing corporations (factories) Applicable Subjects Registration of corporation and real estate Exemption Targets Exemption of License Tax Article 79 Sections 1 & 2 of the Restriction of Special Local Taxation Act Related Provisions * Export Companies: Over USD 1M per year for the last 3 years (even 1 time is also considered recognized) * New Growth Manufacturing: Water leisure equipment, new and renewable energy equipment, leisure sporting goods * Inquiries: Corporate Tax Division, Jeju Tax Office Jeju-si Seogwipo-si Exemption of Property Tax Exemption for 7 years Exemption for 10 years Relocation of corporations or factories in Overcrowding Control Area Applicable Subjects * Reduction for relocation of corporations: Article 79 Sections 1 & 2 * Reduction for relocation of factories: Article 80 Section 1 Related Provisions Exemption for 5 years Relocation of export company corporations or factories Exemption for 7 years Exemption for 10 years Exemption for 7 years Exemption for 15 years Exemption for 10 years Exemption for 7 years Exemption for 15 years Investment companies with facility investment* exceeding KRW 30B or with a number of full-time employees exceeding 50 * Construction cost, facility equipment purchase cost, infrastructure installation cost Requirements Support for special subsidy up to KRW 5Bwithin budget depending on investment performance (however, within 5% of the investment amount for special subsidy) Details Special subsidy Type Large-scale Investment Companies Tax Reduction or Exemption for Relocating Companies in accordance with the Restriction of Special Taxation Act, etc. * Inquiries : Corporate Tax Division, Jeju Tax Office * Basis for Support: Article 79 of the Restriction of Special Local Taxation Act, Articles 14 & 15 of the Province Tax Exemption Ordinance Relocation of Corporations (Factories)
Invest in the Future of Jeju Part 02. Investment Attractiveness of Jeju Special Self-governing Province 24 25 JDC Project Guide & Investment Proposal 4. Local Investment Promotion Subsidy Support Target Businesses Applicable Subjects Basis for Support The State’s Local Financial Support Standards for Local Governments’ Local Investment Company Attraction * Ministry of Trade, Industry, and Energy Notice No. 2021-194 Relocation of Companies in Metropolitan Area, & New/ Expanding Companies Manufacturing industries, information & communication industries, knowledge service industries [Targets Excluded] Real estate, consumerable service, nonstore, marine transportation brokerage, video hall, news provider, blockchain-based, crypto asset sales and brokerage, wholesald and product brokerage Requirements ◊ Number of full-time employees to be maintained during the project period (5 years) ◊ No bookkeeping/registration, transfer, provision of collateral for important assets, Collateral submitted in preparation for subsidy redemption Regions & Business Types Full-time Employees ◊ Number of full-time employees at the existing business site to be 30 or more ◊ Number of employees after relocation to be at least 30 or more ◊ (Including the number of employees at the existing business site) ◊ Number of full-time employees at the existing business site to be 10 or more ◊ Number of new employees to be at least 10% or more of that of the existing business site (min. 10) Relocation of Companies in Metropolitan Area ◊ Business performance for 1 year or more in Metropolitan Overcrowding Control Area* ◊ Investment of KRW 1B or more (KRW 30B or more for large corporations) New/Expanding Companies ◊ Companies that have been in business for 1 year or more in a row in Korea ◊ The type of business operated in Jeju shall be the same up to the subclass (3 digits) of the Korean Standard Industrial Classification as that of the business type of the existing business ◊ Expansion of the existing business or a business closely related to the existing business Requirements for Investment ◊ Independent business site to relocate to Jeju, the existing business site to be closed or sold ◊ The existing business site to be maintained (closing, selling, leasing, or downsizing prohibited) ◊ Exception can be made when the business site is located in Metropolitan overconentration control area. Support Type Settlement Facility Within 10% of the land purchase price Within 30% of the land purchase price 65 : 35 (National Expenses : Provincial Expenses) (New establishment / expansion) no settlement subsidy Mid-sized Companies Large Corporations SMEs Remarks (Support ratio of national/ provincial expenses) Within 7% of the facility investment Within 5% of the facility investment Within 9% of the facility investment 65 : 35 (National Expenses : Provincial Expenses) ◊ Additional support for regional specialized industries (3% to 10%) ◊ Additional support for facility subsidy support ratio depending on the number of new employment (2% to 10%)
Invest in the Future of Jeju Part 02. Investment Attractiveness of Jeju Special Self-governing Province 26 27 JDC Project Guide & Investment Proposal Local Investment Promotion Subsidy Support Process (Companies in Metropolitan Area, New/Expanding Companies) Application Period ◊ Settlement Subsidy : Within 1 year from the date of signing the location (change) contract (However, within 3 months from the reporting date of construction if 3 months from the reporting date of construction is earlier) ◊ Subsidy : Within 3 months from the reporting date of construction ※ For companies in the metropolitan area and new/expanding companies, the subsidy is paid after deliberation and decision by the Ministry of Industry Metropolitan Overcrowding Control Area / Overcrowding Control Area in accordance with Article 6 Section 1 of the Seoul Metropolitan Area Readjustment Planning Act / Overcrowding Control Area 1. Seoul Special City 2. I ncheon Metropolitan City [excl. Ganghwa-gun; Ongjin-gun; Daegok-dong, Bulo-dong, Majeon-dong, Geumgokdong, Oryu-dong, Wanggil-dong, Dangha-dong, Wondang-dong, Seo-gu; Incheon Free Economic Zone (incl. areas released from the Free Economic Zone); and Nam-dong National Industrial Complex] 3. Uijeongbu, Guri, Namyangju (only Hyeongyeong-dong, Pyeongnae-dong, Geumgok-dong, Ilpae-dong, Ipae-dong, Sampae-dong, Gamun-dong, Suseok-dong, Jigeum-dong, and Donong-dong are applicable), Hanam, Goyang, Suwon, Seongnam, Anyang, Bucheon, Gwangmyeong, Gwacheon, Uiwang, Gunpo, Siheung [excl. Banwol Special Area (incl. areas released from the Banwol Special Area)] PROCESS 7 Company Jeju ① 100% of the settlement subsidy ② 70% of the facility investment subsidy ※ Reporting of construction: 1 year from the date of notification that subsidy support is applicable PROCESS 8 Company Jeju Submission of settlement statement upon completion of the investment PROCESS 9 Province (Industrial Complex Corporation) ① Review of settlement application ② on-site verification of the business site PROCESS 10 Company Jeju Provision of 30% of facility investment subsidy PROCESS 11 Company Jeju Project implementation management (5 years) and inspection (once a year) PROCESS 1 Company Jeju Prior consultation and MOU signing ※ Signing to be concluded before land purchase PROCESS 2 Company Jeju Application for subsidy support considering the start date of construction PROCESS 3 Jeju Feasibility analysis and application review PROCESS 4 Jeju Ministry of Industry Subsidy application PROCESS 5 Industrial Complex Corporation On-site due diligence / briefing PROCESS 6 Ministry of Industry (Local Investment Promotion Subsidy Deliberation Committee) Feasibility analysis and decision on support and subsidy amount ※ Please contact Investment Promotion Division at Jeju Provincial Office for details. ※ Checking of relevant regulations is recommended when conducting business as investment policies may change. Additional Investment Installing business facilities through expansion of gross area of the business within local in purpose of expanding existing business or to enter a related field of industry. New Investment Building new business site or renewing and changing the usage of exsisting business facility or purchasing used business site for investment use and building facility in purpose of expanding existing business or to enter a related field of industry.
Invest in the Future of Jeju 1. A bout Jeju Free International City Development Center (JDC) 2. Main Projects of Jeju Free International City Development Center (JDC) Part 03 Jeju Free International City Development Center (JDC) JDC Project Guide & Investment Proposal
Invest in the Future of Jeju Part 03. Jeju Free International City Development Center (JDC) 30 31 JDC Project Guide & Investment Proposal 1. About Jeju Free International City Development Center (JDC) Central government public enterprise (under Ministy of Land, Infrastructure and Transport, Rep of Korea) Established to promote government level development/investment to build Jeju into a free international city. (2002) Type of Organization Purpose of Establishment ◇ To enhance industrial promotion. attract business and investment based on infrastructures of main projects of the Free International City (medical care, education, tourism, high-tech) in order to gain global competitiveness ◇ To operate domestic dutyfree shop to raise funds for developemental projects ◇ To carry out supporting projects for internationalization and increase of income for local residents Role Key Project Achievements Changes in Social Economic indicator in Jeju after the Establishment of JDC Operating 4 international schools within the English Education City (Around 4,800 students enrolled) Around 200 companies residing in Advanced Science & Technology Complex As of 2020 KRW 6,197B of Sales 3,042 ppl employed Cumulative savings for cost of studying abroad Estimated to be KRW 1,119.6B (As of September 2022) ◇ Investment from Greenland Holdings to Healthcare Town ◇ Healthcare Town Medical Service Center completed (December 2021) Myths and History Theme Park Revitalization of Korea’s largest integrated resort with investment from Landing Group Presidential Organizational Citatoin for foreign investment attraction 2017 2021 Population 697,000 GRDP(KRW) 19.6trillion Tourists 12.01million Foreigners 48,000 Cooperation System with Relevant Organizations •Jeju지원위원회 Republic of Korea Government Ministry of Land, Infrastructure, and Transport Jeju Free International City Development Center Jeju Special Self-Governing Province Office of Government Policy Coordination / Jeju Support Committee Tourists 4.11million Foreigners 290,000 Population 542,000 GRDP(KRW) 4.8trillion 2001 Tourists 8.74million Foreigners 1.04million Population 580,000 GRDP(KRW) 11.8trillion 2011 Tourists 14.31million Foreigners 1.22million Population 692,000 GRDP(KRW) 18trillion 2018
Jocheon-eup Gujwa-eup Seongsan-eup Namwon-eup Pyoseon-myeon Daejeong-eup Andeok-myeon Hallim-eup Aewol-eup Hangang-myeon Jeju-si Seogwipo-si Invest in the Future of Jeju Part 03. Jeju Free International City Development Center (JDC) 32 33 JDC Project Guide & Investment Proposal 2. Main Projects of Jeju Free International City Development Center (JDC) Established as the best integrated tourism complex in Northease Aisa with a theme of myths and history. Myths and History Theme Park 1 Location Seogwang-ri, Andeok-myeon, Seogwipo-si Area 3,985,601.4m2 (Approx. 1.2 million pyeong) Project Period 2006 - 2021 Main Facilities Integrated resorts (theme parks, water parks, hotels, MICE, casinos for foreigners, themed streets of East-West/Oriental/European, etc.), Jeju Myths and History Theme Park, etc. Established as a new educational tourism infrastructure centered on education and experience in the field of aviation and space Jeju Aerospace Museum 3 Established as an international education hub by absorbing domestic and foreign demand by providing world-class educational services Jeju English Education City 2 Medical tourism investment attraction project with wellness concept created by JDC Jeju Healthcare Town ‘Healing Hills’ 7 Public Rental Housing 4 Supporting residential stability in Jeju-do by supplying public housing and providing housing welfare services Jeju Advanced Science & Technology Complex 2 (Construction in Plan) 6 Enhancing the advanced industry competitiveness of Jeju by establishing an industrial complex that meets the demands of advanced industry such as IT, BT, CT, and ET in connection with Jeju Advanced Science & Technology Complex 1 6 7 3 1 2 4 5 Location Daejeong-eup, Seogwipo-si Area 3,790,597.7m2 Main Facilities International schools (7), residential and commercial facilities, English education center, educational and cultural facilities, support facilities, and foreign educational institutes Location Seogwang-ri, Andeok-myeon, Seogwipo-si Area 30,578,512m2 (Approx. 100,000 pyeong) Main Facilities Aviation History Hall, Astronomical Space Hall, Themed Video Hall, and Outdoor Exhibition Hall Location Wolpyeong-dong, Jeju-si Area 848,000m2 (260,000 pyeong) Project Period 2016 - 2027 Main Facilities IT, BT, CT, ET companies, public and private research institutes, etc. Location Dongheung-dong and Topyeong-dong, Seogwipo-si Area 1,539,339m2 (Approx. 470,000 pyeong) Main Facilities Medical R&D centers, healthcare centers, specialized hospitals, rehabilitation centers, etc. As a national industrial complex adjacent to Jeju National University and Jeju International University, optimized for the establishment of the industry-academia-research cluster, obtained excellent accessibility as the provincial government office, city hall, Jeju International Airport, and Jeju Port are located within a 10km radius of the complex Jeju Advanced Science & Technology Complex 1 5 Location Ara-dong, Jeju-si Area 1,098,878.1m2 (Approx. 330,000 pyeong) Project Period 2016 - 2025 Main Facilities IT, BT, ET companies, public and private research institutes, etc. Location Wolpyeong-dong, Jeju-si (A23 Block, Advanced Science & Technology Complex) Area 48,792.7m2 (Approx. 15,000 pyeong) Project Period 2016 – 2020 (occupancy completed 100%) Main Facilities 793 units of apartment houses and additional welfare facilities
Invest in the Future of Jeju Part 03. Jeju Free International City Development Center (JDC) 34 35 JDC Project Guide & Investment Proposal Invest in the Future of Jeju 1. Route 330 (Jeju Innovation Growth Center) 2. Jeju Advanced Science & Technology Complex 1 3. Jeju Advanced Science & Technology Complex 2 4. English Education City 5. Healthcare Town Part 04 JDC Project Investment JDC Project Guide & Investment Proposal
Invest in the Future of Jeju Part 04. JDC Project Investment 36 37 JDC Project Guide & Investment Proposal 1. Route 330 (Jeju Innovation Growth Center)
Invest in the Future of Jeju Part 04. JDC Project Investment 38 39 JDC Project Guide & Investment Proposal Jeju Innovation Growth Center (Route 330) Route330 ICT / MYSC Starter/Challenger/ Together zone Route330 AEV / KAIST Research Space, Office Space of Residing Companies Jemiman.Lab Makerspace EV-LAB Future Mobility Research Space A D B Semiyang Building Facility Overview Total Area 22,634.30㎡ Number of Floors 1 under ground floor 5 above ground floors Building Area 9,481.20㎡ Site Area 20,664.80㎡ Residence Status Jeju Innovation Growth Center
Invest in the Future of Jeju Part 04. JDC Project Investment 40 41 JDC Project Guide & Investment Proposal Promotion Directions Promotion Achievements Base for Industrial Complex Innovation & Job Creation Attracted a total of 107 promising start-ups by field and created 546 jobs ICT 2019 Number of Residing Companies 21 Number of Employment 75 2020년 Number of Residing Companies 30 Number of Employment 150 2021년 Number of Residing Companies 30 Number of Employment 212 Investment Attraction Amount (Cumulative) KRW 24.56B Total 2019 Number of Residing Companies 32 Number of Employment 115 2020년 Number of Residing Companies 50 Number of Employment 227 2021년 Number of Residing Companies 58 Number of Employment 342 Investment Attraction Amount (Cumulative) KRW 70.56B 2019 Number of Residing Companies 11 Number of Employment 40 2020년 Number of Residing Companies 20 Number of Employment 77 2021년 Number of Residing Companies 28 Number of Employment 130 Investment Attraction Amount (Cumulative) KRW 46B AEV Route330 AEV KAIST Incubating the future mobility industry 2 Route330 ICT MYSC Incubating promising technology companies in ICT 1 Jeju Innovation Growth Center Incubating Start-ups & Future Industries centered around 4th Industry Operation of start-up/industry Incubating programs to enhance growth engine of the Advanced Science & Technology Complex Strengthening Support for Growth of Start-ups through Infrastructure Expansion Establishment and operation of office space, research and creative facilities, and support for attracting investment for residing companies Expansion of Business Start-up Culture within the Province & Establishment of Cooperative Network Special lectures on start-ups, networking days, start-up idea contests, and establishment of start-up support-related organization network
Invest in the Future of Jeju Part 04. JDC Project Investment 42 43 JDC Project Guide & Investment Proposal Support Program for Incubating Start-ups in ICT Field Support Program for Incubating Industries & Technology Companies in AEV (Future Mobility) Field Route330 ICT For 25 Starter companies and 7 Challenger companies Route330 AEV For 24 residing companies related to future mobility Support for AEV/local industryspecialized preliminary start-ups and SME growth - Operating educational programs such as technical seminars and KAIST ESV JEJU Camp for students Domestic and overseas marketing support through funding, investment, and market development expert matching KAIST researchers – Support for R&D collaboration between residing companies Corporate consulting for technology commercialization and training professional talents. ICT Boot Camp 2022 ICT Boot Camp Step-by-step growth support for entrepreneurs of ICT-based technologies - Start-up education, such as entrepreneurship and attitude promotion, innovation key strategy and mindset, etc., provided Support for the cooperative network through resource connection with VCs and large corporations Support for commercialization such as diagnosis of commercialization status and BM verification, expert mentoring Corporate-tailored financial support such as capital support, funds, loans, etc.
Invest in the Future of Jeju Part 04. JDC Project Investment 44 45 JDC Project Guide & Investment Proposal 2. Jeju Advanced Science & Technology Complex 1
Invest in the Future of Jeju Part 04. JDC Project Investment 46 47 JDC Project Guide & Investment Proposal To establish a new base for indutrial growth for the economy of Jeju by creating knowledge-based complex in fields of ICT and life scince. Purpose Jeju-do, city hall, Jeju International Airport, and Jeju Port located within a 10km radius Easy access to industrial connection as well as young talents by having higher education institutions nearby. Location Conditions Yeongpyeong-dong, Jeju-si Location 1,099,000m2 (about 330,000 pyeong) Area KRW 580B Completion of industrial facility site distribution and complex revitalization such as corporate residences (around 190 companies) IT, BT companies, public and private research institutes, etc. National industrial complex / Public Development Project Cost Key Achievements Attracted Businesses Designation / Development Method Sales of residing companies in 2021 KRW 6.197 trillion Number of Employees Around 3,042 people
Invest in the Future of Jeju Part 04. JDC Project Investment 48 49 JDC Project Guide & Investment Proposal Jeju Advanced Science & Technology Complex 1 Layout Status 1 JDC Rental House 2 JDC RicheVille Apt 3 School site 4 Single-family home 5 FORENA 2 Apartment 6 FORENA 3 Apartment 7 Jeju Farm Agricultural Cooperative Corporation 8 Global Zeus 9 NewGenPharm 10 SKINCURE 11 BioSpectrum 12 Smart Building 13 Elite Building / DRM City 14 Jeju General Business Center 15 CS 16 JTP Digital Convergence Center 17 Mtree 18 eINS S&C 19 Jeju Farm 21 20 BMI Korea 21 JENONG 22 Kakao Space.2 23 Kakao Space.Kids 24 Kakao Space.1 25 Kakao 26 BERRY Entertainment & Media 27 E2Z 28 Jeju Industry-Academia Convergence District Corporate Research Center, Industrial Complex Campus 29 ESTsoft 30 MJ 31 FORETEK 32 DAE KYUNG 33 Botamedi 34 Korea Leading Energy Management 35 KESCO 36 Daeeun Electrical 37 Dentium 38 Jeju Innovation Growth Center (Route 330), Jeju Special Self-Governing Province Development Co., Semiyang Building Industrial facility site Research facility site Communal residential site Single residential site Production activity support facility Neighborhood living facilities School site Complex 2 Jeju National University 1 7 8 9 10 11 12 22 24 25 26 27 28 30 37 29 31 33 34 36 38 35 23 2 3 4 5 6 13 14 15 16 17 18 21 20 19 32 Land Use Plan 33 lots 414,912.9㎡ Industrial Facility Site Support Facility Site Neighborhood Living Facility Site 22 lots 14,351.7㎡ Communal Residential Site 4 lots 142,274㎡ School Site 1 lot 21,100㎡ Single Residential Site 55lots 12,827.9㎡ Production Activity Support Facility Site 26,986.5㎡ Subjects for Residence ◇ Advanced manufacturing industries related to information technology (IT) and biochemistry (BT), R&D and knowledge industries, industries related to information communication, etc. ◇ Knowledge industries such as the information communication industry and natural science R&D industry, etc. ※ Some businesses may be restricted from residing in accordance with the Jeju Advanced Science & Technology Complex Management Master Plan. Smart Building Site Area 9,849.3m (2,979 pyeong) Total Area 28,311m (8,564 pyeong) Number of Floors 1 basement floor and 5 ground floors Leased Facilities IT, BT companies and research institutes Additional Facilities Conference rooms, lounge, cafeteria, gym, etc. Elite Building Site Area 6,558.1m (1,984 pyeong) Total Area 19,873m (6,012 pyeong) Number of Floors 2 basement floors and 5 ground floors Leased Facilities General offices Additional Facilities PR halls, exhibition halls, conference rooms, banks, etc. Semiyang Building Site Area 20,664m (6,250 pyeong) Total Area 22,634m (6,846 pyeong) Number of Floors 1 basement floor and 5 ground floors Leased Facilities General offices, R&D, etc. Additional Facilities Educational research facilities
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