November 17, 2009 11:07
The government will offer investors planned industrial sites in South Chungcheong Province at lower prices than in nearby industrial parks to refashion the flagging administrative town project into a business city. It also plans the same or more tax benefits than a free economic zone for the site in South Chungcheong Province.
The plans came in PR materials to lure investment from domestic and foreign investors published Monday. The agency in charge of the project recently opened an English website (www.happycity.go.kr) for foreign investors. "It promises to supply the land at "unprecedented low prices" for investors.
The agency said investors can purchase the land by long term installment plan to relieve any financial difficulties in the early stage of business.
It also promises "dramatic" deregulation, waiving mandatory hiring requirements and paid vacation for workers. Foreigners will be able to establish private foreign schools and profit-making hospitals, while the ceiling on foreign currency transactions will be raised.
The agency promises investors various tax benefits, including 100 percent corporate and income tax (national taxes), and acquisition, registration, property and composite land taxes (local taxes) for the first three years and 50 percent for the next two years. Duties for imported capital materials will be waived for the first three years.
Investors will benefit from 30 percent foreign labor income tax or from a 17 percent uniform tax rate. The agency will also give cash grants to the investors to build new plants and for employment, education and training of their employees.
The support program is on a par with a similar program designed for investors in free economic zones. The government plans to reflect it in a revision bill which it will finish drafting next month.
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