Jeollabuk-do at a Glance
|Location||Southwestern region of the Korean peninsula|
|Administrative Areas||6 Cities and 8 Counties (2Gu, 14eup, 145myeon, 82dong)|
|Population||1.882 million (3.8% of the national total)|
Annual Average Temperature (14.2℃)
Annual Average Rainfall (1,200mm)
|GRDP||KRW 27.8 Trillion (3.0% of the national total)|
|Industrial Composition||Agriculture/Fishing Industry 10.6%, Manufacturing Industry 24.8%, Service Industry 51.7%, Others 2.2%|
|Industrial Complexes||101 locations(6 national, 21 regional, 71 agricultural and industrial, 3 others); 82,938,000㎡|
|Number of Manufacturing Businesses||3,822 (the first half of 2007)|
- Average annual temperature: 12.8 ℃ / Average annual rainfall: 1,200㎜
- Honam, Seohaean, 88 Olympic, Daejeon-Jinju, Iksan-Jangsu, Gochang-Jangseong, Jeonju-Gwangyang, Saemangeum-Pohang (Planned), Gunsan-Iksan (Planned)
- Operation of KTX on Honam line, Gunsan-Janghang, Saemangeum-Gunsan (Planned), Railroad extension to the Gunjang National Industrial Complex by 2012, construction of double tracks and electric railways on Jeolla line by 2011
③ Port (Gunsan Port)
- Capacity : 24 berths for 10,000-50,000 ton vessels, capable of handling 19 million tons of cargo on an annual basis
※ 10 more berths will be added by 2011, increasing cargo handling capacity up to 31 million tons a year.
- Scheduled container vessels: 4 routes (3 for China and 1 for Japan)
- Gunsan-Sanghai (once a week), Qingdao (three times a week), Shidao (three times a week)
- Gunsan-Tokyo-Yokohama-Chiba (Once a week)
※ Saemangeum New Port - 26 berths of 15,000 TEU vessels (Planned)
- Gunsan Domestic Airport (expected to be developed into an international airport), Saemangeum International Airport (Planned)
⑤ Effective Grievance Resolution System
- On-site service, management of a team devoted to resolving grievances
- Online consulting service (www.jbsc.or.kr)
⑥ Stable Labor-Management Relationship
- Declared "Harmony of Labor and Management & Industrial Peace" for the first time in Korea (November 2006)
- Promotes the vision of "Harmony of Labor and Management & Industrial Peace in Jeonbuk" to unite labor and management
- Operates an advisor system for sound labor-management relationship (private arbitration system)
- Provides subsidies to workplaces promoting harmonious labor and management relations
- Establishes regular forums on win-win propositions for both labor and management/ network of labor-related officers
- Recruits support programs for harmonious labor and management: 11 workplaces in three sectors (large, mid-sized, small and medium-sized enterprises)
⑦ Excellent Human Resources/ Technical Experts for Businesses
- Over 200 research institutions, 36 science and engineering colleges and universities, and vocational high schools in the province produce highly-skilled technicians.
- University : ten universities including Chonbuk National University, Gunsan National University, Wonkwang University
- Foreign school : Jeonbuk Foreign School (Jeonju)
1. Common Factors
- Tax Benefits
- Companies established in the foreign investment zone be exempt from national tax for the first five years, followed by a 50 percent tax cut for the subsequent two years, while they will be exempt from local taxation for 15 years.
- When making investment in the Gunsan Free Trade Zone
a. High-tech companies will be exempt from national tax for the fist five years, followed by a 50 percent tax cut for the subsequent two years while they will be exempt from local taxes for 15 years.
b. Manufacturers with investment of over US$10 million and logistics companies with investment of over US$5 million will be exempt from national tax for three years, followed by a 50 percent tax cut for the subsequent two years, while they will be exempt from local taxes for 15 years.
- Companies established in the Gunsan-Saemangeum Free Trade Zones will be exempt from national tax for three years, followed by a 50 percent tax cut for the subsequent two years, while being exempt from local taxes for 15 years.
- Employment Subsidy
- Companies that newly hire more than 20 Jeollabuk-do residents will be eligible for a monthly subsidy of KRW 500,000 for each extra worker over the initial 20 new employees for up to six months. Each company is eligible for up to KRW 500 million.
- Education & Training Subsidy
- Companies that provide education and training to newly hired employees will be eligible for a monthly subsidy of KRW 100,000 to KRW 500,000 for each extra worker over the initial 20 new employees for up to six months, Each company is eligible for up to KRW 500 million.
- One-Stop Service
- The One-Stop Service not only processes various procedures for investment in batch based on a collaborative system of related parties, but also provides conveniences by assigning an exclusive manager for each foreign investor.
- It offers various kinds of data such as factory sites and current status of business and overall services from investment consultation. It also handles government approval procedures, on behalf of the investor, to solve problems that occurred in the course of management activities.
2. Option (Investor can choose either No. 1 or No. 2)
- Rent-free Land (An investor cannot receive cash grant and free land at the same time.)
- Companies established in the foreign investment zone and Gunsan-Saemangeum Free Economic Zone will be eligible for free industrial lands for up to 100 years (initially 50 years with an extension of 50 years).
- Companies established in Gunsan Free Economic Zone will be eligible for free industrial lands for up to 50 years (initially 10 years with an extension of an 40 years).
- Cash Grant (An investor cannot receive cash grant and free land at the same time.)
- A foreign-invested company that invested over US$10 million directly in the region's specialized industries, such as the services industry that supports existing domestic industries, high-tech industries, video, biotechnology, and aerospace industries, will be eligible for cash grant of KRW 5 to 10 billion for purchasing land and/or building/expanding factories.
1. Gunsan Free Trade Zone
- Location : GunsanCity , North Jeolla Province
- Developed Area : 125.4 hectares (380,000 pyong) of the Gun-Jang National Industrial Zone
- Attractive Features
- A world-class free trade zone with global-standard open economy
- Korea's first comprehensive free trade zone including production, logistics and international trade industries
- Foreign investor-friendly zone offering one-stop administrative services and a variety of incentives
- Strategic location as an international trade base for targeting Mainland China, Northeast Asia and Asia-Pacific Rim
- Automobile and machinery integrated industrial zone with adjacent Automobile Parts Technology Innovation Center, GM-Daewoo, Hyundai Motor, TATA Daewoo Commercial Vehicle and numerous auto parts suppliers
- Qualified Businesses
- Manufacturing : Foreign investment companies focusing on export
- Logistics : Warehousing, transportation, shipping, cargo handling, packaging, exhibition, sales, repair, etc.
- Trading : International Trade, transit trade, trade agency, etc.
- Industry-supporting Sector : Finance, customs clearance, medical centers, information process, labor welfare businesses, etc.
* Export-oriented domestic companies and collaborative domestic suppliers of the foreign investment companies are allowed to enter in the GFTZ
* Domestic companies in logistics, trading, and industry-supporting sectors are also allowed
③ Definition of Foreign Investment Company
- Total amount of invested capital must be at least 50 million won (If there are two or more investors, the amount of capital invested by one person must be at least 50 million won)
- The ratio of foreign investment is more than 10% of the total equity
- If FDI ratio is less than 10%, one of the following conditions must be met :
- Make an agreement to dispatch or assign CEO
- Make an agreement to supply or purchase raw materials or goods for more than one year
- Make an agreement to provide technology or to set up a joint research & development project
- Preferred Industries
- Machinery, metal assembly, automobiles and related parts industries
- State-of-the-art technology industries approved by Minister of Commerce, Industry and Energy
- Advanced technology industries and industry-supporting businesses
- Other manufacturers that posses huge effects resulted from technology transfer and employment
④ Investment Incentives
- Land Lease for Free or at Low Prices
- Rent-free Lease: 10 years (Renewable at maturity)
> Over $10 million investment
> Over $1 million investment that is at least 30% of the total equities
> Over $0.5 million investment in new and advanced-technology industries machinery, automobile and related industries
- Long-term Low Rate Lease: 10 years (Renewable at maturity) for (US) 3 cents/㎡ per month
> Investment in all other industries
- Cash Grant
> Foreign investment of at least USD10 million is made to build or extend plant for advanced technology businesses or service businesses supporting other local industries
> Foreign investment of at least USD10 million is made to build or extend plant for manufacturing parts or materials
> Foreign investment of at least USD5 million is made to build or extend research facilities for advanced technology businesses or service businesses supporting other local industries with employment of 20 or more researchers
- Amount of cash grant is based upon negotiation with individual foreign investors and decision by Foreign Investment Deliberation Committee
- Tax Break
- Subject :
> Foreign Investment Companies in Manufacturing Sector
>> Advanced-technology industries or industries that support the existing domestic industries
>> For all other manufacturing industries, amount of FDI must be US$30 million
> Foreign Investment Companies in Distribution & Logistics
>> Amount of FDI must be US$30 million or more
- Tax Reduction/Exemption:
> National Taxes: 5-year full exemption of corporate and income taxes from the first profitable fiscal year, and thereafter, 50% reduction for 2 years
> Local Taxes: 15-year full exemption of acquisition, registration, property and aggregate land taxes
- Deferred Payment of Tariff :
> Facility commodities, raw materials and other imported goods essential to operate a business
> Goods imported and stored for a certain period of time in order to export (transit trade goods)
- Tax Assessment Standard Deduction:
- When both domestic and imported raw materials are used to manufacture and process goods, appropriate tax will be deducted up to the portion of domestic raw materials applied in the finished goods
- Other Incentives
- Permission to reinvest their dividends or invest into other field of industries
- Guarantees to remit the principal and/or the dividends to foreign country
- Public subsidies for various purposes, such as employment, job training, housing,
2. Saemangeum Project
① Project Overview
- Size : 4401㎢ (land reclamation: 283㎢ / fresh water reservoir: 118㎢)
- Facilities : The world longest sea dike(33km), Two sluice gates(656m)
② Project Strategy
- Developing new industries & a logistics hub
- Developing an advanced technology cluster based on next generation 6T (IT, BT, NT, ST, CT, ET)
- Developing the best food industry cluster in Northeast Asia based on an environment-friendly multi-agricultural industry
- Developing the International Maritime Tourist Zone utilizing splendid natural landscapes
- Specializing a new renewable energy complex utilizing the natural environment
- Enacting special laws to promote the Saemangeum Project
- Developing systematic measures to ensure government's early implementation of the Framework for Saemangeum Development Project
③ Establishment of Saemangeum Special Law
- Key Details
- Leasing land for up to 100 years
- Preparing regulations to support development of key infrastructures such as railways, airports and ports
- Simplifying the development procedures by putting on the agenda 32 approval/permission related provisions from separate laws.
- Expected Effect
- Early development of the Saemangeum area as development entities centralize
- Development made easier as legal procedures regarding internal development are simplified
- Conflict prevention between government ministries and narrowing of differences in project opinion