Gangwon at a Glance
|Area||16,873㎢ (17% of national total) Fields and forests 81.6%, farm land 8.4%, others 10%|
|Population||1.54 million (3.2% of national total)Population density 93.7 persons/㎢|
|Administrative units||18 cities & counties (7 cities, 11 counties), 187 eup, myeon, & dong|
|Average annual precipitation||1,668mm|
① You Can Tap a Huge Consumer Market of 25 Million People within One Hour
- Benefiting from a dramatic expansion of multi-regional transportation networks, including the expansion of the Yeongdong and Jungang Expressways to four-lanes in each direction, the opening of Yangyang International Airport, and the expansion and paving of major national roads, Gangwon now enjoys much improved accessibility to major cities nationwide as well as the Seoul Metropolitan Area. No wonder it is fast growing as a center of logistics!
- Construction/Expansion/ Extension of Expressways
- Construction of Dongseo Expressway (Seoul-Chuncheon-Yangyang)
- Extension of Donghae Expressway (Samcheok-Sokcho)
- Extension of Jungang Expressway (Cheolwon-Chuncheon-Daegu)
- Expansion of Yeongdong Expressway (Seoul-Gangneung) into a four-lane road in each direction
- Construction of Yeongdong Expressway No. 2 (Gwangju in Gyeonggi Province-Wonju)
- Expansion of Railroad Network
- Double-tracking of Gyeongchun Line (Seoul-Chuncheon)
- Construction of a railroad between Chuncheon and Sokcho
- Double-tracking of Jungang Line (Deokso-Wonju-Jecheon)
- Construction of a railroad between Wonju and Gangneung
- Construction of a multi-regional belt railroad network in the Seoul Metropolitan Area
- Construction of Donghae Line (Pohang-Samcheok, Gangneung-Goseong) and restoration of Gyeongwon and Geumgangsan Lines
- Expansion/Paving of National Roads
- Expansion/paving of major arterial roads into four-lane roads in each direction, including early completion of National Road No. 38 (Jecheon-Donghae)
- Yangyang International Airport (Taiwan/Shanghai), Wonju Airport (Jeju)
- Construction of a container terminal at Donghae Port
- Development of a cruise hub port at Sokcho Port
② Gangwon’s Environment is Conducive to Corporate Growth
- Highly qualified professionals and workers are readily available
- Highly proficient researchers, engineers, and workers from the 20 universities/colleges and 31 university/college-affiliated research institutes in the province afford a large pool of highly qualified human resources.
- The central government extends enthusiastic support
- According to its balanced regional development policy, the central government of Korea has earmarked US$ 0.83 billion for Gangwon to stimulate the province’s economy in major regional and business areas.
- Gangwon’s non-stop service solves your business problems
- In addition to its lower land prices, Gangwon provides full administrative service over an entire business process, from finding an appropriate construction site through obtaining permits and authorizations to the construction of a plant.
- Gangwon has Strategies and Vision for the Infrastructure
- Gangwon will become a center of high-tech industry through its Triangle Techno Valley strategy.
- It’s Triangle Techno Valley strategy will make the province a heart of high-tech industry. A total of US$ 1.3 billion will be invested in the triangle connecting Chuncheon, Wonju, and Gangneung to fully leverage the economic values of the province’s clean environmental resources and upgrade its industrial structure.
- Major infrastructure improvements planned ahead of 2014 Winter Olympics
- All components of the infrastructure will be expanded and developed in a bid to win the right to host the 2014 Winter Olympics. Large-scale infrastructure investments, including the construction of Yeongdong Expressway No. 2, will greatly benefit industry and business.
- Gangwon is the starting point of a unified Korea
- As the only divided province in the world, Gangwon has steadfastly promoted exchange between the divided southern and northern parts of the province and enactment of the Border Area Support Act, restoration and expansion of transportation networks connecting South and North Korea, opening of tourist routes, and development of tourism in the Seorak and Geumgang areas.
③ At Gangwon, a Wide Variety of Business Incentives are Available, including Relocation Grants, Land Purchase Subsidies, and Tax Benefits (Special Support Measures to Areas in the Province with Closed Mines)
- Supported area
- All of Taebaek and parts of Samcheok, Yeongwol, and Jeongseon
- Company relocation grants and job creation subsidies
- Head office relocation : A subsidy of 10 percent of the acquisition price of the new head office building is granted (up to US$ 0.4 million).
- Relocation of a plant : A subsidy of 10 percent of plant building and facilities investment costs is granted (up to US$ 0.4 million).
- Employment subsidy : A subsidy of US$ 600 is provided per every new employee exceeding five newly employed regular workers who are employed from among local residents (for up to six months and up to US$ 0.2 million in total).
- Cash grants: Awarded at an annual 2% floating interest rate (however, if the rate exceeds 4%, interest is compensated up to 2%).
- Facility loans: Up to US$ 5 million (for up to ten years, including a five-year grace period).
- Working capital: Up to US$ 0.5 million (for up to five years, including a two-year grace period).
- Tax benefits
- Property and aggregate land taxes are completely exempted for the first seven years and are reduced by 50% for the next three years.
- Tax Break
- Gangwon province offers foreign investments various tax breaks ─national taxes for ten years and local taxes for 15 years.
- Benefits in Rent & Purchase of State-owned/public Lands
- State-owned/public-owned lands can be leased for up to 50 years for rent-free, and if the purchase conditions meets the given criteria in size and area, public land can be sold for free
- Infrastructure & Duty Benefits
- Foreign investment shall be preferentially provided with infrastructure like ports, roads, water supply, railroads, telecommunications and electricity are provided, and be exempted from seven duties including forest diversion duty and farmland diversion duty. Foreign investment shall also not be restricted by the regulations like restrictions on entering certain industries nor by the mandatory employment of men of merits
- Administrative Supports
- Gangwon local government guides globalization and the free market principle. All the public servents of Gangwon will spare no efforts to provide all administrative supports entailing foreign investment in the region.
- Tax Breaks & National/Public Properties Use
|Tax Break||Corporate Income Taxes 100% for 7 yrs||50% for 3 yrs||
Factory facilities of industrial supporting service
Factory facilities of Hi-tech businesses
Facilities within Foreign Investment Zones
|Acquisition, Registration, Property, Aggregate Land Tax||100% for 15 yrs||Factory facilities of industrial supporting service Factory facilities of Hi-tech businesses Facilities within Foreign Investment Zones|
Public Properties Lease
|National Properties||100% for 50 yrs||
Land sites within Foreign Investment Zones
Business with foreign investment of more than US$1 mil. (designated business as tax break beneficiary)
|75% for 50 yrs||
Manufacturing businesses with foreign investment of more than US$5 mil.
SOC building, industrial structuring, or any businesses that contribute to the region's financial independence.
|50% for 50 yrs||Land sites within National Industrial Complexes etc.|
|Public Properties||100% for 50 yrs||
Businesses with foreign investment of more than US$1 mil. (Hi-Tech Business)
Businesses with foreign investment of more than US$20 mil. (Manufacturing businesses)
Manufacturing businesses with more than 300 daily employees
Tourism Hotel, International Convention Facilities with foreign investment of more than US$20 mil. tourist hotel with more than US$20 mil. invested, international conversence facilities, or resort facilities with more than US30 mil. invested (tourist complex, etc.)
|75% for 50 yrs||
US$ 10 mi. up to 20 mil.
Manufacturing businesses with foreign investment of more than US$10 mil. up to US$20 mil.
Manufacturing businesses with more than 200 up to 300 daily employees
|50% for 50 yrs||
Manufacturing businesses with foreign investment of more than US$5 mil. up to US$10 mil.
Manufacturing businesses with more than 100 up to 200 daily employees
Public Properties Sale
|National Properties||installment for 20 ys(4% per annum)||Foreign invested businesses|
|Public Properties||installment for 20 ys(4% per annum)||Foreign invested business factory facilities|
Properties within Foreign Investment Promotion Zones
Properties within large factory construction businesses and the incidental facilities with foreign investment of US$100 mil.
Properties within factory sites with more than 1,000 daily employees
Properties within Hi-Tech business premises with foreign investment of US$5 mil.
Properties within factory sites with more than 300 up to 500 daily employees
|25% reduction||Properties within factory sites with more than 300 up to 500 daily employees|
1. Donghae-Bukpyeong National Industrial Complex
* A Free Trade Zone in the East Sea Rim Area
- Bukpyeong National Industrial Complex, Donghae, an industrial hub of the East Sea rim area with excellent connections to the world. With the expansion of the infrastructure, including major transportation networks and port facilities, the complex offers a host of business opportunities as a free trade zone.
(1) Bukpyeong Industrial Complex, Donghae
- Location : Bukpyeong-dong (Guho-dong), Donghae City, Gangwon Province, Near the Donghae Port to the southeast of the Donghae City Hall, Adjacent to the Chuam Beach
- Site area : 2,587,000㎡ (National 1,874,000㎡, Public 714,000㎡)
- Industrial complex for lease to general public : 104,000㎡,
- Industrial complex for small-and-medium-sized enterprises (SMEs) : 36,000㎡
- Land of sale : 1,562,000㎡ (National 1,002,000㎡/Public 560,000㎡)
- Land Price : About US$ 82/㎡
- Special support: Companies in the complex are entitled to the special support for SMEs until 2010.
(2) The Donghae Free Trade Zone
- Location : Bukpyeong National Industrial Complex, Guho-dong, Donghae City, Gangwon Province
- Area : 247,734㎡ of the total 2,587,000㎡ in the complex
- Land composition : Plant 218,006㎡, roads 29,728㎡
- Development period : 2006~2009
- Development means: Selling land to foreign invested companies or low-priced or long term leasing
- Incentives :
- Cash grants, exemption of import tariffs and VAT
- For foreign companies, rent is completely exempted, and national and local taxes are reduced by 50~100% for a certain period.
① Locational Advantages and Characteristics
The complex is a forward trade base connecting China, Russia, Japan, and Southeast Asia.
It is located at a strategic point that links China, Russia, Japan, and Southeast Asia, putting it at the center of the increasing trade in 21st century East Asia. A railroad between Pohang and Donghae and connected to the TSR (Trans Siberian Railroad) is planned, and direct lines with Tsurugashi, Japan and Nahotkashi, Russia are being pursued.
A national industrial complex on the coast with an excellent business environment. Support cities with well-developed industries, public services, educational systems, and living environments are close to the complex. Companies providing materials for the industrial infrastructure, including cement and steel, are within the complex, helping to ensure the production and trade of other companies.
As a free trade zone, tenant companies enjoy a wide range of incentives. As a free trade zone, business incentives nearly equivalent to those of a foreign investment area will be provided in the future, including cash grants, exemptions from import tariffs and VAT, and exemptions/reductions in other taxes and rent.
② Available SOC
With the opening of the Yangyang International Airport, it is easily accessible from all around the world. It is also close to Mukho and Donghae Ports, which are being promoted by the central government as advance bases for trade with former socialist countries in Centrial and Eastern Europe. The expansion and reopening of the Yeongdong Expressway improved accessibility to the Seoul Metropolitan Area, and the expansion and reopening of the Donghae Expressway and expansion of the Jungang Expressway and 83 artery roads have drastically improved its accessibility.
③ Major Infrastructure Providing Stable Production Environment
- Electricity : Donghae Thermal Power Plant (200,000 KW x 2 Units)
- Communication: Currently 600 lines (broadband network to be installed if additional lines are required)
- Stable supply of water
- Dalbang Dam (capacity 77 million tons) providing water for industrial use (20,000 tons/day). Additional development of underground waste (20,000 tons/day) and expansion of water intake and purification facilities (20,000 tons/day) can support much greater population and increased number of tourists.
- The Sewage Treatment Plant
- The Sewage Treatment Plant is to be completed in 2006, and the Wastewater Treatment Plant in the complex is already operational. (13,000 tons/day)
- The most advanced wastewater treatment facility in Korea
- Incineration facility (30 tons/day), reclamation facility (24,000㎡), recycling and waste food-to-compost facility (35 tons/day)