More Chances for Foreign Investment
The Korean government said on December 9 that it has designated five new locations as foreign investment zones. Korea currently operates 81 FIZs throughout the country.
A foreign investment zone (FIZ) is designated upon request from foreign investors or joint ventures with an investment plan. Having the FIZ designation entitles the investors to a wide range of benefits, including rent and tax incentives.
One of the five new FIZs is a joint investment area where four foreign companies, including German medical equipment manufacturer Artificial Life, plan to invest a total of US$68 million in Munmak, Gangwon Province over the next five years, according to the Ministry of Industry, Trade and Energy.
Jointly with Korea’s Lotte Chemical, Italy’s Versalis S.p.A plans to begin producing petrochemical products with an investment of over US$515 million, including US$100 million of foreign direct investment. The joint venture will start its production from 2017 in a plant in Yeosu City located 455 kilometers south of Seoul.
The other three new FIZs are set to house Japan’s Toray Industries, Nitto Denko, and US-based Air Products & Chemicals, respectively.