Kish Trade Promotion Center
Free Trade Zones are generally industrial complexes, airports, ports, distribution complexes or freight terminals. Industrial linkage and synergy are considerable in these zones, as they are open both to manufacturing and logistics industries.
Tax benefits are available in varying scopes depending on the type of industries and size of investment. As these zones are legally considered to be outside KoreaĄŻs customs territory, customs duties on foreign goods and certain domestic goods entering them are deferred, and zero-rated VAT is applied. Manufacturers importing raw materials and exporting finished goods do not need to go through complicated drawback procedures.
Free Trade Zone administration agencies provide a comprehensive administrative portal processing all essential formalities including reporting investment to authorities, obtaining permission to move into the zone, permission to construct a plant and applying for import and export licenses.
Providing lands and plants at extremely affordable rates for long-term lease, free economic zones offers conditions that are especially advantageous for foreign companies in export-oriented manufacturing, logistic businesses, including warehousing, loading and unloading and packaging, and wholesale import and export business. These zones are more particularly suited for large-size foreign-invested companies, combining manufacturing and logistics operations.
Free Trade Zones Designated to Date
Free Trade Zones are distinguished into those based in industrial complexes, on the one hand, and those developed in the hinterlands of airports and ports, on the other. There are currently 4 industrial complex-based Free Trade Zones, located respectively in Masan, Iksan, Gunsan and Daebul, and 5 airport or port hinterland Free Trade Zones, each located in Incheon IntĄŻl Airport, Port of Gwangyang, Port of Incheon and Port of Gunsan (designation forthcoming). Meanwhile, distribution complexes or freight terminals can also be designated as Free Trade Zones.
Administration of free economic zones are overseen by three different authorities, in charge of managing zones falling into their respective specialty areas; the Ministry of Industry, Commerce and Energy for those based in industrial complexes, the Ministry of Construction and Transportation for those in airport hinterlands, and the Ministry of Maritime Affairs and Fisheries for those in port hinterlands.
Masan Free Trade Zone
The Masan FTZ also has a better investment climate, which has brought much more foreign companies in the industrial complex.
The Masan FTZ provides resident
companies with excellent administrative businesses - report on foreign
investment, permission on new factory buildings and export-import approval
- which is under the direct control of the MFTZ Administration Agency, an
affiliate of Ministry of Commerce, Industry & Energy.
The Masan FTZ had been operated as
"Free Export Zone" focused on manufacturing.
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Copyright By : Kish Trade Promotion Center 2002