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Jeju Special Self-Governing Province grants unique incentives to investments made on Jeju from either foreign or domestic entities. A variety of benefits such as tax reductions and the application of special cases for public properties will be granted to promote core industries of Jeju Island. The designation is available for any Jeju area by choice of the investors.
Investment Promotion Zones are divided into individual-type and complex-types. The individual-type can be designated to any Jeju area as chosen by the investors, from among 27 types of industries. The complex-type can be designated by complex residents in 27 types of industries when a development project operator secures over two-thirds of the land in a recreational area or any area with a district unit plan.
Conditions for Designation
Total investment amount exceeding USD 20 million
Tourist hotel businesses, floating tourist hotel businesses, Korean traditional hotel businesses (excluding casino businesses and bonded sales businesses), general resort complex businesses, specialized resort businesses (excluding golf courses, resort condominium businesses), tourist excursion ship businesses, tourist theater businesses, amusement complex businesses, international conference facility businesses, and tourist restaurant businesses
Total investment budget exceeding USD 5 million
Cultural industry, senior citizens’ welfare facility businesses, youth training facility businesses, tramway businesses, electricity generation businesses, and training institute businesses
Autonomous schools, international high schools, foreign educational institutions, and international schools
Medical institutions (excluding clinics, dental offices, oriental medical clinics, maternity hospitals)
Advanced technology utilization businesses, healthcare technology R&D businesses and R&D service businesses, food and beverage manufacturing businesses, marina businesses, cosmetics manufacturing businesses, and R&D businesses
Conditions for Designation
Total investment amount exceeding KRW 100 billion
The complex-type can be designated among complex residents in 27 types of industries, which are the same as those for the individual-types, when a development project operator secures over two-thirds of the land in a recreational area or any area with a district unit plan.
Corporate taxes and income taxes are exempted for three years, and then reduced by 50% for two years.
For development project operators, corporate taxes and income taxes are reduced by 50% for three years, and then 25% for two years.
Customs duties are exempted for capital goods that are imported for direct use within three years from the designation date.
Acquisition taxes are exempted for five years from the designation date (for complex-type, from the initial date of real estate acquisition)
Property taxes are exempted for ten years from the designation date (for complex-type, from the initial date of the formation of tax liability)
Development charges and public water fees are exempted; farmland preservation charges, alternative grassland creation expenses, and alternative forest resources development expenditure are reduced by 50%, and sewerage charges by 15%
Following designation, Jeju Special Self-Governing Province monitors the progress of the investment plans for Investment Promotion Zones.
Designee for Investment Promotion Zones should report to Jeju Special Self-Governing Province on whether to carry out investments on a biannual basis (end of August and end of February).
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