JDC Project Investment Guide

Invest in The Future of Jeju JDC Project Investment Guide Part 02. Jeju Special Self-Governing Province Investment in Attraction 16 17 ※ 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. Deferment of transfer income tax for 5 years on the difference in transfer caused by transferring buildings and lands for relocation, and equal taxation for 5 years thereafter Metropolitan Overcrowding Control Area: HQ Reductions Outside Metropolitan Area: Factories Relocation Areas/Subjects Within Metropolitan Area Local Tax Exemption for property tax for 5 years from the date of the first establishment of tax obligation for real estate used directly for the project (50% reduction for 3 years thereafter) Exemption for property tax for 5 years from the date of the first establishment of tax obligation (50% reduction for 3 years thereafter) 50% reduction for property tax for 5 years from the date of the first establishment of tax obligation for real estate used directly for the project Article 14 of the Ordinance on Provincial Tax Reduction or Exemption Article 79 of the Restriction of Special Taxation Act Article 15 of the Ordinance on Provincial Tax Reduction or Exemption A company that directly conducts businesses for 6 months or more outside an overcrowding control area in the metropolitan area relocating its HQ to Jeju-do A corporation that directly conducts businesses in an overcrowding control area in the metropolitan area relocating its HQ to Jeju-do A company with its HQ in Jeju-do that achieved export performance of USD 1M or more in at least 1 year within 3 years, retroactively from the date of acquisition of taxable goods Reductions Relevant Basis Subjects Property Tax Reductions Exemption for acquisition tax for real estate acquired for direct use within 3 years Exemption for registration and license tax for corporation and real estate registration Article 14 of the Ordinance on Provincial Tax Reduction or Exemption A company that directly conducts businesses for 6 months or more outside an overcrowding control area in the metropolitan area relocating its HQ to Jeju-do Relevant Basis Subjects Acquisition Tax / Registration & License Tax Types Applicable Subjects Support Project Name Supports Companies in Information & Communication Industries & Cultural Industries Lease and employment support for cultural industries and information and technology industries - Cases where a company operating in cultural industries and information or technology industries leases a building and employs locals, etc. as full-time Lease (In the case of more than 10 full-time employees) 50% of the lease for 3 years (Limited at KRW 500M) Facility Equipment Purchase Cost (In the case of more than 10 full-time employees) Limit of support for the initial equipment purchase cost - 30% for more than 10 employees (within KRW 300M) - 40% for more than 30 employees (within KRW 400M) - Up to 50% for more than 50 employees (within KRW 500M) Employment Subsidy (In the case of more than 10 full-time employees) 6 months*KRW 1M/person, 70% of the 6-month average wage (Limited within KRW 300M) SMEs (In the case of more than 20 full-time employees) 6 months*KRW 1M/actual cost per person (Limited within KRW 300M) ※ 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. Article 79 of the Restriction of Special Taxation Act A corporation that directly conducts businesses in an overcrowding control area in the metropolitan area relocating its HQ to Jeju-do Exemption for acquisition tax for real estate acquired for direct use Tax Benefits National Tax (Article 63-2 of the Restriction of Special Taxation Act) Outside Metropolitan Area: Factories and HQ with business performance for 3 years or more Exemption for Jeju-si corporate tax for 4 years and 50% reduction for 2 years thereafter Reductions Metropolitan Overcrowding Control Area: Factories of SMEs with business performance for 2 years or more Relocation Areas/Subjects Metropolitan Overcrowding Control Area Exemption for Seogwipo-si corporate tax for 6 years and 50% reduction for 3 years thereafter