Investment Methods
Requirements for investment and business participation in the IFEZ
- Foreigners, foreign companies, and international economic organizations are allowed to freely run businesses in the free economic zones.
- After being designated as a project implementer by the Incheon Free Economic Zone Authority, the project can be implemented by qualified foreign individuals, businesses, or foundations.
- In order to be designated as a project implementer by the IFEZ, the following requirements must be met:
Requirements for investment and business participation in the IFEZ table - Classification, manufacturing, development project table
Classification |
Manufacturing |
Development project |
Qualification |
- Investment in new factory construction
- Investment through stocks, equity acquisition, investment by long-term loans
- Sole investment in foreign-invested companies or joint ventures with local Korean companies
|
- Ability to attract foreign investment
- Financial soundness and fund procurement capabilities are required
- Experience implementing similar development projects
- Matters deemed necessary by the Minister of Planning and Finance for the smooth implementation of development projects *Article 8(3) of the Special Act on the Designation and Operation of Free Economic Zones (Designation of Development Project Implementers)
|
Preferred field |
- IT, BT and other high-tech industries
- R&D, technology introduction/transfer business
- Establishment of Asia Regional Headquarters, etc.
|
- Logistics Facilities
- Tourism/Leisure
- Finance, businesses related to international business
- Support for the living environment for foreigners, such as building foreign schools and hospital facilities
|
Location |
- Occupancy of various industrial parks to be established in the IFEZ
|
- Development project site within the IFEZ (separate)
|
Foreign Investment Guidelines
- The direct investment method allows sole investment and joint venture (acquisition of new shares and existing shares)
- Protection of investment and business activities by law
- Direct investment in the construction of new factories, implementation of development projects, the introduction of equity investment capital goods, etc.
- (In accordance with the Foreign Investment Promotion Act and the Act on the Designation and Management of Free Economic Zones)
- Promotion of joint ventures with local Korean companies
Investor Participation Guidelines
Investor Participation Guidelines Table - Classification, method of participation, remarks table
Classification |
Method of participation |
Remarks |
project implementers |
- Implementation of business through sole and joint ventures
- The manufacturing sector refers to direct investment in the establishment of new factories.
|
- Major investors and master developers
|
co-implementers |
- Participation in projects by means of internal agreements, such as signing joint implementation agreements
- Joint implementation by joint investment, etc.
|
- Participation in projects by means of internal agreements, such as signing joint implementation agreements
- Joint implementation by joint investment, etc.
|
equity investment |
- Investment through SPC's issuance of new shares and acquisition of old shares
- Various M&A strategic alliances, etc.
- Institutional Investors Financing and Direct Investment in SPC
|
- Local companies can participate
- Public corporations / public institutions can participate in the SPC within 20% of the shares.
|
long-term loan investment |
- Long-term lease investment in SPC of more than 5 years
- Introduction of Equipment Financing following the aforementioned conditions, etc.
|
- A borrower is a direct investor, the investor's parent company and its relationships.
|
capital reinvestment |
- Introduction of and investment in equipment, machines, raw and subsidiary materials
|
- Introduction of Capital Goods through business plans
|
operators |
- Participation as an SPC management operator or an operator of private facilities
|
- Consult with SPC to determine the scope of project participation
|
Tenant |
- Participation as tenants and direct users of developed facilities
- In consultation with SPC, investors are welcome to participate as an equity landlord.
|
|
technology transfer |
- Valuation and direct investment for technology introduction, provision, and transfer
|
|
research corporations and foundations |
- R&D facilities, hospitals, schools, etc.
|
- Can be jointly established with relevant local institutions
|