2025韩国外商投资指南

Businessin Korea Main Summary Major Changes inBusiness in Korea2025KOTRA's FDI-relatedPublications006010 INCENTIVE 1.Tax Reduction andExemption2.Foreign InvestmentZones3. Cash Grant4. R&D Support5.Management Support086102112120132 PROCEDURE 1.Foreign InvestmentPromotion Policy2.Types of ForeignDirect Investment3.Procedure by Type ofInvestment4. Incorporation5. Industrial Sites6. Visa014018024038054070 Practice 1. Taxation2.Customs Clearanceand Introduction ofCapital Goods3. HR and Labor4.Foreign InvestmentOmbudsman System5.Dissolution andLiquidation140158166180186 Appendix [Appendix 1]Businesses Prohibited from Foreign Investment192 [Appendix 2]Businesses Restricted from ForeignInvestment and Criteria for Permission[Appendix 3]Local Tax Rate[Appendix 4]KOTRA’s Overseas Investment Hub Offices[Appendix 5]List of Delegated Agencies[Appendix 6]List of Law Firms[Appendix 7]List of Accounting and Tax Firms194196197198199199 MainSummary Major Changes in Businessin Korea 2025KOTRA's FDI-related Publications Major Changes in Businessin Korea 2025 Foreign Investment Incentive Tax Reduction and Exemption •Expansion of the Scope of National Strategic Technologies and New Growth andSource Technologies(p.89, p.98-99) ①Addition of 5 new materials, parts, and equipment-related technologies andbioenergyproduction technologies ②Addition of advanced technologies centered on the semiconductor field -The addition of detailed technologies related to the design and manufacturing ofsemiconductor-related materials, parts, and equipment for next-generation memorysemiconductors, as well as the design and manufacturing of power semiconductors forenergy efficiency improvement ③Addition of 3 new hydrogen and energytechnologies to cope with the climate crisis ④Clarification of scope of technology in advanced materials, parts, and equipment field andexpansion of technology in the carbon neutral field (Advanced Materials, Parts, and Equipment) Clarification (expansion) of design andmanufacturing technology scope of advanced machining center and advanced turning center(Carbon Neutrality) Expansion of production technology for biochemical raw materialsreplacing petroleum polymer ※For information on the detailed technologies that fall under the scope of national strategic technologies and newgrowth and source technologies, refer to Appendix 7 and Appendix 7-2 of the Enforcement Decree of the Act onRestriction on Special Cases Concerning Taxation. •Extension of the Reduction Period for Customs Duties, Special Excise Taxes, andValue-added Tax on Imported Capital Goods(p.94) -Extension of the reduction period in customs duties, special excise taxes, and value-addedtax on capital goods imported for foreign investment to up to 7 years Reduction Period for Customs Duties, Special Excise Taxes, and Value-added Tax •Expansion of the Scope of Income Tax Reduction for Foreign Engineers(p.96) -To attract excellent overseas talent in advanced industries, those who meet the criteria forexcellent overseas talent specified in the Special Act on High-Tech Industry Talent Innovationare also subject to reduction of income tax for foreign workers. *Graduates with master's or doctoral degrees from the top 100 global universities with at least 8 years of work experience,including at least 3 years of work experience at a top global company •Expansion of the Scope of Application of Tax Credit for R&D Expenses(p.98) -Research facility rent, software rental/purchase fees,etc., are alsosubject to tax creditfor national strategic technology, new growth/source technology research/humanresource development expenses. -Tax credit for research/human resource development expenses is appliedtocloud usage feeto expand support for research and development in the field of artificial intelligence. Cash Grant •Raise of Cash Grant Ceiling and Central Government Funding Ratio 1)The cash grant ceiling is raised by 5 to 20%p permanently, and will be raised by 10 to25%p up to a maximum of 75% in 2025 temporarily. Cash Grant Ceiling by Sector 2)The central government's funding ratio for opportunity and development zones andregions outside the Seoul metropolitan area is raised by 10%p. Ratio of Central-Local Government Funds for Foreign Investment Cash Grant *The ratio of central government funds can be raised (however, within the limit of 80%) for advanced industry/R&D (10%p)and national strategic technology / advanced strategic technology (20%p) •Opportunity Development Zone – Package Support by Designating SeparateQuarters outside the Seoul Metropolitan Area(p.107-109) -If designated as an opportunity development zone regarding FDI, the corresponding areais not included in the area upper limit* by city/province and this applies retroactively toprevious investments** * [Metropolitan City] 4.95 km2(1.5 million pyeong) / [Province] 6.6 km2(2 million pyeong)**Example) Local government A can receive opportunity development zone designation for