Korea to expand tax benefits for foreign-invested companies

Seoul--(뉴스와이어)--In a free economic zone committee meeting, presided over by Deputy Prime Minister and Minister of Finance and Economy Kwon O kyu, the government decided to extend its tax exemption period on some foreign-invested companies in the country's free economic zones to five years from the current three years aimed at attracting more foreign investment.

After the period expires, the companies will receive a 50-percent tax reduction cut for two more years.

The new rule will be applied to companies in the country's free economic zones that have attracted large-scale foreign investment.

Manufacturers should have attracted at least $30 million worth of foreign investment to receive the benefit, while tourism businesses should have received at least $20 million.

For logistics companies, the minimum requirement has been set at $10 million.

The government also plans to add research and development businesses as beneficiaries of the tax exemption and reduction to attract more research centers.

In addition, the government plans to select two to three more regions as new free economic zones within this year.



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