[Sponsored Report] Nammoon FIZ benefits overseas companies

Nammoon District is located in Changwon, at Busan-Jinhae Free Economic Zone. Its target businesses are those in the parts and materials industry.

Nammoon Foreign Investment Zone, located in Busan-Jinhae Free Economic Zone (BJFEZ), is luring foreign investment companies by offering them various incentives and administrative benefits.

Located in Changwon, South Gyeongsang, Nammoon Foreign Investment Zone is the country’s most representative parts and materials complex.

The government started building the complex in 2006 to attract foreign investment into the area. Companies that are 100 percent foreign owned or joint ventures with a minimum foreign equity ratio of 30 percent are eligible for investment.

Currently, Danish company Sondex Korea and Japanese company Tsubakimoto Automotive Korea, which manufactures timing chains, an engine part for automobiles, are operating in the complex. Tsubakimoto Chain, the parent of Tsubakimoto Automotive Korea, is a multibillion dollar auto-parts company that invested $25 million into Nammoon Foreign Investment Zone in October 2011.

Foreign companies in Nammoon enjoy considerable benefits. Rent is offered at a mere 1 percent of land price for a maximum of 50 years. Companies are eligible for cheaper rent when they surpass 5 million dollars of foreign direct investment (FDI), and if they invest over $20 million, full rent exemption is granted.

For FDI larger than $10 million, investors can receive a 100 percent national tax exemption for up to five years- including corporate and income tax - and local tax exemption - including acquisition and property tax - for 15 years.

Benefits such as these vary, ranging from the reduction to the exemption of corporate tax, local tax and tariffs, depending on the ratio of the foreign investment. As a result, as much as 32,842 square meters (8.2 acres) out of the zone’s 71,688 square meters is already occupied, and inquiries from foreign companies about the remaining space continue to rise.

Nammoon District provides optimal traffic infrastructure and is located within close proximity of major transport centers. The zone is 13 kilometers (8.1 miles), or 10 minutes away, from Busan New Port by car, is located 19.9 kilometers from Namhae Expressway Garak IC and is 29 kilometers from Kimhae Airport. The nearby New Port Hinterland Road II is currently under construction, which will make Nammoon even more accessible.

“Residential areas, neighborhood facilities and commercial areas are already in place, and educational institutions such as elementary and middle schools are expected to open soon,” Nammoon Foreign Investment Zone said through a press release.

“With such settlement conditions, Nammoon District is expected to become a mecca of the parts and material complex of BJFEZ.”

By Park So-yeon [soyeon_park@joongang.co.kr]