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Korea is to get four new free trade zones, in Ulsan and Pohang Port, Gimje and Pyeongtaek Dangjin Port, the government said Monday. The existing free trade zones of Masan, Busan Port, and Gwangyang Port will be expanded.
Rent of land and buildings will be lowered, businesses will get tax benefits, and it will become easier to lure foreign investment and export companies.
Knowledge Economy Minister Lee Youn-ho said the government will formally designate Gimje and part of Busan Port, for which an environmental evaluation is underway, and Pyeongtaek Dangjin Port, which is subject to review by a redevelopment committee for the Seoul metropolitan area, as free trade zones in January and February.
W466.8 billion (US$1=W1,448) will be injected into Ulsan, Gimje and Masan between 2009 and 2014. Some W135.6 billion is to go to the Masan Free Trade Zone to modernize its logistics center and replace old plants with cutting-edge facilities. A total of W70.5 billion will be invested in Gimje by 2011 to lure auto parts and new renewable energy industries. There are hopes that Pohang, Busan, Gwangyang, and Pyeongtaek Dangjin will become "international logistics hubs."
A ministry official said the free trade zones are expected to create about 22,000 new jobs.
Land and buildings will be leased to foreign investors free of charge for 10 years. Tax breaks will be given to businesses where foreign direct investment exceeds US$5 million, with corporate and income tax cuts for five years -- 100 percent for first three years and 50 percent for the remaining two -- and acquisition, registration, property, and composite income tax cuts for 15 years.
(englishnews@chosun.com )
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