Gov’t eases industrial zone rules for foreigners
Published: 24 Aug. 2014, 21:19
Starting today, relaxed investment requirements take effect for small and midsize foreign companies that settle in 20 industrial zones outside the greater Seoul area.
These are companies that plan to invest a minimum of 50 million won ($49,130) in Korea.
The government has lowered the entry bar for two categories: the minimum investment required and the minimum size of construction sites for production plants.
Previously, small foreign companies were required to bring in cash worth more than double the value of their leased or purchased land. In addition, they had to construct factories that were at least twice the minimum size mandated for local companies. Local companies were required to use 3 percent to 20 percent of their sites for factories, whereas foreign companies were required to fill 15 percent to 40 percent.
From today, foreign companies must invest an amount equivalent to the value of the land they lease, and they need to build on only 12 percent of the site.
An estimated 40 foreign companies currently operating in the industrial zones and 185 companies scheduled to arrive by the end of this month are expected to benefit from the changes.
BY KIM JI-YOON [[email protected]]
These are companies that plan to invest a minimum of 50 million won ($49,130) in Korea.
The government has lowered the entry bar for two categories: the minimum investment required and the minimum size of construction sites for production plants.
Previously, small foreign companies were required to bring in cash worth more than double the value of their leased or purchased land. In addition, they had to construct factories that were at least twice the minimum size mandated for local companies. Local companies were required to use 3 percent to 20 percent of their sites for factories, whereas foreign companies were required to fill 15 percent to 40 percent.
From today, foreign companies must invest an amount equivalent to the value of the land they lease, and they need to build on only 12 percent of the site.
An estimated 40 foreign companies currently operating in the industrial zones and 185 companies scheduled to arrive by the end of this month are expected to benefit from the changes.
BY KIM JI-YOON [[email protected]]
with the Korea JoongAng Daily
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