Overview of Tax Incentives
Under the Foreign Investment Promotion Act, foreign-invested companies in Korea may be eligible for significant tax benefits. Incentives vary based on investment amount, job creation, and industry sector.
Corporate and Income Tax Reduction
Companies investing in new growth engine industries, high-tech sectors, or foreign investment zones may receive 100% corporate and income tax exemptions for up to 7 years, followed by a 50% reduction for an additional 2 years.
Customs Duty Exemption
Capital goods imported for use in foreign-invested projects—including factory equipment, machinery, and research equipment—are exempt from customs duties.