Move-in and Investment Guide::Saemangeum Development and Investment Agency

Move-in and Investment Guide

Strengths of Saemangeum
Saemangeum Investment
Incentives(Benefits)
Investment and Move-in Procedures

Why Choose Saemangeum

Key Investment Points of Saemangeum National Industrial Complex

""Saemangeum National Industrial Complex has secured KRW 6.6 trillion in investment in about a year since the current administration took office, exceeding four times the results achieved in the previous nine years.""

Existence of a dedicated government department with unified authority
SDIA is responsible for industrial park planning and establishment, investment promotion, and issuance of building permits
Fast and integrated (one-stop) services and consistent decision-making to support business activities

Favorable infrastructure
Power and water supply and airport, railway, and port infrastructure in the same region
Affordable land with high scalability (KRW 500,000 per m2)

Business-oriented incentives such as the Investment Promotion Zone
Creation of a favorable environment for businesses, including corporate tax exemption for companies moving into the Investment Promotion Zone
Additional support such as acquisition and property tax reduction and investment subsidies

Selection as a site for the construction of a specialized secondary battery complex
Selection of Saemangeum National Industrial Complex as a specialized secondary battery complex (July 20, 2023)
An optimal platform for the clustering of secondary battery-related industries with the relocation of key companies in the value chain, such as the positive and negative cathode material manufacturers and waste battery recycling service providers
*(As of May 23) A total of 14 secondary battery companies have signed lease agreements worth KRW 4.1 trillion.

Saemangeum Regional
Incentives
Investment Incentives by Type

Saemangeum Investment Promotion Zone (supervised by SDIA)

Investment Promotion Zone

A type of special economic zone providing tax benefits and incentives such as reduction of corporate and income taxes for those investing in the Saemangeum project area

**Investment Promotion Zone**
Investment Promotion Zone District
Category	Saemangeum Investment Promotion Zone Details	Remarks
Area	Saemangeum Business Area	Gunsan·Gimje
Eligibility	Companies starting a business or establishing a new business location	Business relocation not applicable
Benefits	Reduction of corporate tax and income tax by 100% for 3 years and 50% for 2 years	(Limit) 50% of cumulative investment + Number of full-time workers ×KRW 15 million
Benefits	Exemption from shared water surface occupancy and usage fees for 10 years

Applicable conditions

An investment of KRW 500 million to 2 billion or more and employment of 10 to 30 people or more are required to qualify for tax breaks, depending on the business category (e.g., an investment of KRW 2 billion and employment of 30 people or more for manufacturers)

**Applicable conditions**
Applicable conditions District
Investment amount	Number of full-time workers	Business type
KRW 500 million won or more	10 or more employees	▪ R&D
KRW 1 billion or more	15 or more employees	▪ Logistics terminal business and joint delivery center operation business ▪ Logistics in the port hinterland
KRW 2 billion or more	30 or more employees	▪ Manufacturing, engineering, and telecommunications ▪ Computer programming and system integration and management ▪ Information services and other science and technology services ▪ Film, video, and broadcast program production, services related to film, video, and broadcast program production, operation of audio recording facilities, and publishing of music and other audio works ▪ Game software development and supply ▪ Performance facility operations, performing art organizations, other creative and artistic services, tourist hotel business, overwater tourist hotel business, and traditional Korean hotel business (excluding the casino business and bonded sales business) ▪ Specialized recreation business, general recreation business, tourist cruise ship business, and tourist performance venue business (excluding the recreation condominium business and golf course business) ▪ International conference facility business, general amusement facility business, and tourist restaurant business ▪ Senior welfare facility operation business and youth training facility operation business ▪ Rail business ▪ Electricity production business using new and renewable energy

Designation Procedure

Designation Status (as of the end of June 2023)

1st Saemangeum Investment Promotion Zone

(Designation Method) Ex officio designation by the Administrator of SDIA (designated on June 28, 2023)
(Location) National Industrial Complex districts 1·2·5·6 (east side of Saemangeum Seawall No. 4)
(Area) 8.1 ㎢ (2.45 million pyeong, about 2.8 times the size of Yeouido)
(Investment and Employment Scale) KRW 6 trillion in investment and 4,800 employees (predicted)
(Expected Economic Impact) KRW 15.9 trillion in economic impact

Location Map

Location of each district

Saemangeum Land for Long-Term Lease (applied to Saemangeum National Industrial Complex)

(Purpose) To offer land under low-cost, long-term leases within the Saemangeum Industrial Complex (18.5 km2) to attract competent companies and promote investment in Saemangeum

(Location) within the Saemangeum Industrial Complex *'by 2022 2 million m²(606,000 pyeong)

(Potential Tenants) Foreign-invested companies, partner companies, and domestic companies

* New investment of KRW 100 million or more (foreign investment ratio of 10% or more) in accordance with the Foreign Investment Promotion Act * Small or medium-sized enterprises (investment of KRW 1 billion or more) and large corporations (investment of KRW 30 billion or more)

(Permit Period) Up to 100 years (may be extended for up to 50 years after 50 years)

(Annual Rent) 1% of the official land value (5,000 won per m2) for both domestic and foreign companies

※ Significant reduction of annual rent from 5% of the original property value to 1% of the property value to attract more domestic companies (Amendment to the Saemangeum Act, effective as of April 2019)

Investment incentives by type ('as of June 28, 23)

Tax reduction

**Tax reduction**
Tax reduction District
System	Tax classification	Support details
Saemangeum Investment Promotion Zone	Corporate tax Income tax	▪ (Requirement) Establishment of a new business or a new business location in the Investment Promotion Zone ▪ (Benefits) Exemption from corporate and income taxes for 3 years and 50% reduction for 2 years thereafter
Saemangeum Business Zone Project Implementer	Corporate tax Income tax	▪ (Requirement) Total development project cost of KRW 50 billion or more ▪ (Benefits) 50% reduction of corporate and income taxes for 3 years and 25% reduction for 2 years thereafter
Companies in the Industrial Complex	Acquisition tax Property tax	▪ (Requirement) Tenant companies in the industrial complex (newly established or business expansion) ▪ (Benefits) 75% reduction of acquisition tax and 75% reduction of property tax for 5 years
General Bonded Zone	Customs duty	▪ (Requirement) Tenant companies in the Industrial Complex districts 1 and 2 ▪ (Benefits) Suspension of customs duty payment (bonded factory, bonded warehouse, etc.)
Returning domestic companies	Corporate tax Income tax	▪ (Requirement) Companies that meet the requirements to be defined as a "returning domestic company" ▪ (Benefits) 100% reduction of corporate and income taxes for 5 years and 50% reduction for 2 years thereafter
Companies relocating from the Seoul Metropolitan Area	Corporate tax Income tax	▪ (Requirement) Companies relocating their headquarters from the Seoul Metropolitan Area Overcrowding Control Area or relocating their factories from the Seoul Metropolitan Area ▪ (Benefits) Classified by region - Gunsan: Exemption from corporate and income taxes for 7 years and 50% reduction for 3 years thereafter - Gimje and Buan: Exemption from corporate and income taxes for 10 years and 50% reduction for 2 years thereafter
Companies relocating from the Seoul Metropolitan Area	Acquisition tax Income tax	▪ (Requirement) Companies relocating from the Seoul Metropolitan Area Overcrowding Control Area ▪ (Benefits) Exemption from acquisition tax and exemption from property tax for 5 years and 50% reduction for 3 years thereafter
Population Declining Areas	Acquisition tax Property tax	▪ (Requirement) Establishment of a new business or business location in a population declining area (Gimje or Buan) ▪ (Benefits) Exemption from acquisition tax and exemption from property tax for 5 years and 50% reduction for 3 years thereafter
Foreign-invested company	Acquisition tax Property tax Customs duty Individual consumption tax Value-added tax	▪ (Requirement) New growth engine business or foreign-invested business determined by the Saemangeum Committee by deliberation and resolution ▪ (Benefits) Exemption from acquisition tax and property tax for 15 years and exemption from customs duties, individual consumption tax, and value-added tax imposed on the capital goods introduced in accordance with the Foreign Investment Promotion Act
Foreign-invested company	Acquisition tax Property tax Customs duty	▪ (Requirement) Tenant companies in the Saemangeum project area and project implementers in the Saemangeum project area ▪ (Benefits) Exemption from acquisition tax and property tax for 15 years and exemption from customs duties, individual consumption tax, and value-added tax imposed on the capital goods introduced in accordance with the Foreign Investment Promotion Act

Subsidies

Local investment promotion subsidy (Ministry of Trade, Industry and Energy)

**Subsidies**
Subsidies District
Category		SME	Medium-sized corporation	Large corporation
Gunsan	Location subsidy	30 to 50% of the land purchase price	10 to 25% of the land purchase price	-
Gunsan	Equipment subsidy	9 to 44% of capital investment	7 to 39% of capital investment	5 to 31% of capital investment
Gimje and Buan	Location subsidy	40 to 50% of the land purchase price	20 to 25% of the land purchase price	-
Gimje and Buan	Location subsidy	14 to 44% of capital investment	11% to 39% of capital investment	8% to 31% of capital investment

* The maximum rate can be applied to ① material, parts, and equipment companies ② local specialty industries, new employment, etc. at a maximum additional rate (20%p)

Cash support (MOTIE, cash support for foreign investment)

-
Eligibility: New growth engine technology-related businesses, advanced technology and product businesses, material and parts business, businesses creating a large number of jobs, businesses setting up regional headquarters for R&D centers (foreign investment ratio of at least 30%), etc.
-
Support details: Part of the business expenses incurred from purchasing or leasing land and building for factory establishment, construction, purchase of capital goods for business, and infrastructure establishment
* The amount of cash support is determined after deliberation by the Evaluation Committee and the Cash Support Limit Calculation Committee (MOTIE)

Local government subsidies (Jeollabuk-do Province, Gunsa City, Gimje City, Buan County, etc.)

**Local government subsidies**
Local government subsidies District
Category		Jeollabuk-do Province	Gunsan City	Gimje City	Buan County
Employment subsidy		20 or more employees (α) α×KRW 1 million×6 months (Limit: up to KRW 1 billion)	10 to 20 employees or more (α) α×KRW 500,000 to 600,000×6 months (limit: up to KRW 200 million)
Education and training subsidy		20 or more employees (α) α×KRW 100,000 to 500,000×6 months (Limit: up to KRW 500 million)	10 to 20 employees or more (α) α×KRW 100,000 to 600,000×6 months (limit: up to KRW 200 million)
Investment subsidy	Relocating companies	10% of the investment amount over 0 billion (Limit: up to KRW 8 billion)	5% of the investment amount over KRW 2 billion (Limit: up to KRW 5 billion)	5% of the investment amount over 1 billion (Limit: up to KRW 5 billion)
	Newly established business or business location	10% of the investment amount over KRW 1 billion (Limit: up to KRW 8 billion)	3% of the investment amount over KRW 1 billion (Limit: up to KRW 500 million)	5% of the investment amount over KRW 2 billion (limit: up to KRW 5 billion)	5% of the investment amount over KRW 1 billion (limit: up to KRW 5 billion)
	Large-scale investment1)	10% of the investment amount over KRW 1 billion (Limit: up to KRW 30 billion)	5% of the investment amount (Limit: up to KRW 10 billion)	10% of the investment amount (Limit: up to KRW 10 billion)	5% of the investment amount (Limit: up to KRW 10 billion)
	Tourism business	10% of the investment amount over KRW 10 billion (Limit: up to KRW 2 billion, KRW 10 billion for large-scale investment)	5% of the investment amount (Limit: up to KRW 2 billion, KRW 10 billion for large-scale investment)
Factory facility subsidy subsidy *Foreign-invested companies		-			5% of the facility amount over KRW 5 billion (Limit: up to KRW 10 billion)
Industrial location subsidy2) *Foreign-invested companies		Support for rent and pre-sale purchase (not more than 50% of the normal value)	Rent support (not more than 50% of the normal value) Support for pre-sale purchase (not more than 30% of the normal value)	Rent support (not more than 50% of the normal value) Support for pre-sale purchase (not more than 20% of the normal value)	Rent support (not more than 50% of the normal value) Support for pre-sale purchase (not more than 30% of the normal value)
Factory facility subsidy *Foreign-invested companies		-			5% of the facility amount over KRW 5 billion (Limit: up to KRW 10 billion)
Rent reduction *Foreign-invested companies		75 to 100% rent reduction depending on investment amount + number of employees
Settlement support *Large-scale investment companies		Range of KRW 100,000 per person per month (up to 1 year)	Range of KRW 100,000 per person per month (up to 3 years)	-	-
Infrastructure installation cost2)		30% of the production infrastructure installation cost (Limit: up to KRW 5 billion)	-	-	-

1)
Large-scale investment company: Investment amount of KRW 100 billion or more and a certain number of full-time employees or more
(Jeollabuk-do Province & Gunsan City: 300 or more employees in manufacturing, 200 or more in tourism / Gimje City: 300 or more / Buan County: 100 or more)
2)
The industrial location subsidy and infrastructure installation cost subsidy will not be paid in addition to the investment subsidy.

Investment and Move-in Procedures

For detailed information on each procedure, contact the relevant department. As for the details of the support for companies after moving in, contact the One-Stop Support Center (063-733-1263).

**Investment and Move-in Procedures**
Investment and Move-in Procedures District
Procedure	Main contents	the department in charge
1 Investment Consultation and Move-in Screening	Information on the Procedure for Investing in the Saemangeum Area, Incentives for Moving in, etc. (Company) Submission of business proposal Review suitability according to the development plan and implementation plan for the area, including the business classification of the factory, and the master plan for industrial complex management, as well as explain about the company to the relevant authorities ㆍ(SDIA) Introduction of the move-in screening as an agenda item (10 days before the screening date) ㆍ ｢Saemangeum District National Industrial Complex Tenancy Review Committee Operating Regulations｣ - Business type, business plan, environment and safety management, etc.	Exchange and Cooperation Division (063-733-1235)
2 MOU and administrative procedures	ㆍ1 year +1 time extension for SDIA, Jeollabuk-do Province, Gunsan City, KEPCO, and agro-industrial complex	Exchange and Cooperation Division (063-733-1235)
3 Application for tenancy agreement (change)	ㆍ ｢the Industrial Cluster Development and Factory Establishment Act ｣ Article 38 ㆍ ｢the Saemangeum Industrial Complex Leased Land Operation Guidelines｣ Article 17 - Review of application documents such as application for tenancy agreement and business plan as well as opinions from related organizations	Industrial Promotion Division (063-733-1235)
4 Site Use Agreement (pre-sale)	ㆍConclusion of contracts such as land purchase and sale agreements ㆍCopies of the land purchase and sale agreement, contract deposit, tenancy agreement, etc.	Korea Rural Community Corporation (063-450-9034)
5 Land use permit before completion	ㆍ1 year +1 time extension for SDIA, Jeollabuk-do Province, Gunsan City, KEPCO, and agro-industrial complex	Korea Rural Community Corporation (063-450-9034)
6 Building permit	ㆍReview of Building Laws and Consultation with Related Agencies ㆍIssuance of building permit	Information Officer (063-733-1106)
7 Building permit	ㆍReview of required documents such as contracts between construction parties	Information Officer (063-733-1106)
8 Approval of use	ㆍConfirmation of implementation of permit conditions, Consultation with related agencies ㆍIssuance of building use approval	Information Officer (063-733-1106)
9 factory registration	ㆍ｢the Industrial Cluster Development and Factory Establishment Act｣ Article 15 ㆍSubmission of factory establishment completion report ㆍNotification of factory registration and entry into factory register	Industrial Promotion Division (063-733-1260)