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
The 100% corporate and income tax exemptions for up to 7 years, followed by a 50% reduction for an additional 2 years, for companies investing in new growth engine industries, high-tech sectors, or foreign investment zones applied only to reduction applications filed by December 31, 2018 (no new applications accepted).
Customs Duty Exemption
Capital goods imported for use in foreign-invested projects—including factory equipment, machinery, and research equipment—are exempt from customs duties.