Korea Introduces “Mini Foreign Investment Zones”

To promote the participation of foreign companies in the local economy, the Ministry of Trade, Industry and Energy has introduced a new system easing the requirements for foreign investment zones.

Under the new system, which came into effect on April 17, the minimum required area to designate an investment zone is lowered to 82,500 square meters. Previously, the requirement was 330,000 square meters. In an effort to pursue balanced regional development, the mini foreign investment zones will be designated only outside of the Seoul metropolitan area.

Companies investing in the new zones will receive the benefit of low rental fees, while businesses that invest US$ 1 million or more in the high-technology industry will be exempt from paying rent entirely.