JDC Project Investment Guide

Invest in The Future of Jeju JDC Project Investment Guide Part 02. Jeju Special Self-Governing Province Investment in Attraction 12 13 1. Jeju Investment Promotion District Jeju Investment Promotion District is a system that provides incentives such as tax reduction or exemption to locals and foreigners who invest in key projects of Jeju Special Self-Governing Province for the revitalization of Korea’s representative free international city (applied the same for locals and foreigners). Investment Amount - Tourism-related projects: New investment of USE 20M or more - Projects other than tourism-related: New investment of USD 5M or more * Investment project cost items: Land purchase cost, construction cost, measurement/survey cost, design cost, equipment purchase cost, etc. Applicable Subjects 27 industries including tourism, education, medical care, advanced technology, culture, etc. Basis for Designation Article 162 of the Special Act on the Establishment of Jeju Special Self- Governing Province and the Development of Free International City ◊ Tourism-related projects: New investment of USE 20M or more ◊ Projects other than tourism-related: New investment of USD 5M or more Total Project Cost ◊ 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 Corporate Tax & Income Tax (National Tax) 27 industries including tourism, education, medical care, advanced technology, culture, etc. Applicable Subjects Acquisition tax exemption for up to 5 years from the date of designation (acquisition) Acquisition Tax (Local Tax) Acquisition tax exemption for up to 10 years from the date of designation (acquisition) Property Tax (Local Tax) 50-year lease Subjects for reduction or exemption: Advanced science technology complexes, companies residing in Investment Promotion District, and international organizations National/Public Property Various Charges Reduction or exemption for imported capital goods within 3 years from the date of designation for direct use in the target project Tariff Exemption Public waters occupancy/use fee, development charge ※ Since this is only a summary, please contact the Investment Promotion Division of Jeju Provincial Office for more details. ※ Please be sure to check the relevant regulations when conducting actual work as investment-related systems and regulations may be subject to change. Benefits Types Supports Tax Reduction National tax (corporate tax and income tax) ◊ 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 Tariff ◊ Reduction or exemption for imported capital goods within 3 years from the date of designation for direct use in the target project Acquisition (local tax) ◊ Reduction by 75/100 for 5 years from the date of designation ⇨ as of 2022 Property tax (local tax) ◊ Reduction by 75/100 for 5 years from the date of designation ⇨ as of 2022 Various charges ◊ Exemption: Public waters occupancy/use fee, development charge ◊ 50% reduction: Farmland conservation charge, alternative Greenland development cost, alternative forest resource development cost ◊ 15% reduction: Sewerage causative charge National/Public Property Lease ◊ Legal basis: Article 165 of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City ◊ Lease (possible to renew) and permanent facilities may be constructed within the 50-year lease period ◊ Subjects and criteria for reduction or exemption: Reduction of exemption for advanced science technology complexes, companies residing in Investment Promotion District, and international organizations 50% Reduction Farmland conservation charge, alternative Greenland development cost, alternative forest resource development cost 15% Reduction Sewerage causative charge