Korea designates six regions as economic special zones

President Yoon Suk Yeol applauds after concluding the Opportunity Development Zone agreement at the 2nd Local Autonomy and Balanced Development Day celebration on the 6th, held at the Songam Sports Town indoor tennis court in Chuncheon, Gangwon Province. (The Presidential Press Pool)

South Korea’s industry regulators designated six regions outside the capital city of Seoul as special economic zones in which local businesses are exempt from taxes and regulations.

The Ministry of Trade, Industry, and Energy (MOTIE) announced more than 150 companies are expected to invest around 16.4 trillion won ($11.4 billion) across the designated areas. The regions include Ulsan, Sejong, Gwangju, South Chungcheong Province, North Chungcheong Province, and Gangwon Province.

Companies that start or relocate their operations into the zones will benefit from full tax exemptions for five years, followed by a 50 percent tax reduction for another two years. Property taxes on real estate for business will be waived for these companies, and the waiver will be valid for five years.