A Knowledge Creative Corridor for Global Business DGFEZ Daegu-Gyeongbuk Free Economic Zone
Gateway to Global Business As one of the fastest growing economies in the world, since 1960s, Korea now enjoys a highly advanced technological economy, now known as "East Asias Miracle" Daegu-Gyeongbuk region has been a driving force behind Koreas economic development, becoming the center of industrial activities for Samsung Electronics, LG Electronics and POSCO. As a knowledge-creative FEZ, DGFEZ in Daegu-Gyeongbuk will continuously strive to strengthen the Korean economy and its global business partners. DGFEZ offers successful business opportunities. "Your success is our success!" DGFEZ will accomplish this for you!Free Economic ZonesWhat is a Free Economic Zone?A Free Economic Zone is a specially designated area where regulations have been relaxedand businesses can receive tax breaks, financial support, and many other benefits.MissionTo provide an optimal business environment through deregulation, and by ensuring that our institutions meet or exceed global standardsTo provide a comfortable living environment for foreign businesspeople
Overview of KOREALocation : Between China and Japan, two of the worlds leading economies in Northeast AsiaArea : 99,720 km2Population (2008) : 48,606,787Capital : SeoulGDP(2008) : USD 1.128 trillion (ranked 13th in the world)Per capita Gross National Income (2008) : USD 19,231Export / Import (2008) : USD 433 billion / USD 427 billionInflow Foreign Direct Investment : USD 36.4 billion (ranked 8th among OECD countries)Major industries : Services 57.2%, Mining & Manufacturing 28.2%, Construction 9.1%, Agriculture, forestry and fishing 3.2%, Electricity, gas and water supply 2.3%
Overview of Daegu-GyeongbukOfficial name : Daegu Metropolitan City(Daegu), Gyeongsangbuk-do Province(Gyeongbuk)Location : Koreas southeast regionPopulation(2008) : 5,222,266 (Daegu 2,512,604 & Gyeongbuk 2,709,662)Area(2007) : 19,909 km2 (Daegu 884 km2 & Gyeongbuk 19,025 km2)Major industries : Electric, Mobile, Machineries, Metals, Automotive parts, Textile Daegu hosts the 2011 IAAF World Championship
Daegu-GyeongbukAn Ideal Location for Global BusinessConvenient transportation InfrastructureDaegu-Gyeongbuk is located approximately 90 minutes from Seoul whentraveling by the KTX. Also, the Daegu International Airport has 6international flights to destinations such as Beijing, Shanghai and theGimhae International Airport has 17 international flights to destinationssuch as Tokyo, Hongkong. Additionally, there are 5 International Portswithin a 1 hour distance from Daegu-Gyeongbuk region, which providesfor convenient logistics and transportation.R&D hub of KoreaDaegu-Gyeongbuk operates superior and specialist R&D facilities such asDaegu Gyeongbuk Institute of Science & Technology(DGIST), PohangAccelerator Laboratory(PAL), National Center forNanomaterials &Technology(NCNT), POSTECH Biotech Center in the region.Excellent human capitalThere are 51 universities and colleges in Daegu-Gyeongbuk, andconsequently is ranked relatively high in the number of colleges per capita.Annually approximately 70,000 students graduate from these universitiesand colleges and enter the labor market, with nearly 17,000 of thosegraduates having majored in the IT, NT, BT, and intelligent automotivesareas. Also, the turnover rate of Daegu-Gyeongbuk was only 2% in 2007.Since 2007 for 2 years, Daegu-Gyeongbuk has kept the stablemanagement-labor relationship region with no labor strikes.Worlds major cultural regionDaegu is a global city which has been chosen to host numerous sportingand cultural events. The 13th IAAF World Championship in Athletics 2011and the World Energy Congress 2013 are scheduled to take place in Daegu.Also, Daegu is a city of culture and arts with the International MusicalFestival and the International Opera Festival taking place every spring andfall. One can also find World Heritages Sites (UNESCO)such as Bulguksa,Sukgulam and the Gyeongju Historic Areas throughout Gyeongbuk.
Overview of DGFEZProject period : 2008~2020Area : 10 districts encompassing 34 km2The Daegu-Gyeongbuk Free Economic Zone (DGFEZ) is a special economic zonein South Korea that offers an optimal business environment by providingfinancial incentives, relaxed regulations and customized facilities to globalcompanies looking to satisfy their customer base in Korea and expand into Asia.DGFEZ has 4 industrial corridors (IT Convergence, Transportation Components,Green Energy, Knowledge-based Services) located within five cities in Daegu-Gyeongbuk (Daegu, Gumi, Gyeongsan Yeongcheon, Pohang).
DGFEZ, "Special Economic Zonefor Knowledge Creation“Knowledge creatorThrough the knowledge corridor of Gumi-Daegu-Gyeongsan-Yeongcheon-Pohang,DGFEZ will enjoy the synergy effect integrating the knowledge-based services such asinternational education, medical, R&D and digital contents and the knowledge-basedmanufacturing specialized IT, mobile, green energy and state-of-the art parts &materials.Global industrial clusterDGFEZ is an international cluster of specialized IT and electronic industries withSamsung Electronics, LG Electronics, LG Display, Toray Saehan, Samsung Corning,ExxonMobil, and Asahi Glass. POSCO, the 4th largest steel company, and Siemens arelocated in Pohang. Within 1 hour distance, the other global companies operate theirbusiness including Hyundai Motor, SK Energy and GM Daewoo.Green residential environmentThe districts of DGFEZ will have an eco-friendly living environment with low-carbonindustry and energy efficient commercial and residential buildings. Also, DGFEZ isstriving to become an eco-friendly zone by developing low density areas. Daegu International School
Yeongcheon Industry District*Yeongcheon Industry District will be a supply center for parts and materials in thecutting-edge transportation industry. Therefore,in this district, both highly sophisticatedand environmentally friendly parts and materials manufacturers will be located.The District will attract not only firms related to parts and materials that would be usedto manufacture heavy industries (machinery, ships, railroad cars, bikes, medicalinstruments) but also those firms engaged in the highly sophisticated mechanicalparts and materials industries fused by the IT and NT.Target businesses : : auto/mechanical/railroad cars/heavy machinery/bike parts & materials Area : 1.66km2 Location : Geumho-eup, Yeongcheon City, Project period : 2008 - 2013
Gumi Digital District*Gumi Digital District has abundant of opportunities to develop itself as the leader inthe IT and mobile industry. This district is concentrating on the IT convergence &fusion industry and on the green energy industry to become the optimal locationfor investment.Gumi Digital District is planned to be developed as a district of the next generationhigh-tech industries such as solar cell, secondary battery, LED by combining theexisting mobile and IT industries of Gumi.Target businesses : high-tech IT, mobile, solar cell, next generation display, robotics, LEDArea : 6.24km2Location : Sandong-myeon, Gumi City, Gyeongbuk ProvinceProject period : 2012 - 2015
Gyeongsan Knowledge Industry District*Gyeongsan Academic District will create the best academicsystem for education andR&D in an industrial environment.Through the cohesive interaction amongsteducation, industry andresearch, this district will become the "Think-Tank" ofknowledge-based Free Economic Zone. Construction machine parts & materials, LEDand medical equipment industries will be implemented into the knowledge-basedindustrial district. Also,Gyeongsan Academic District will incorporate a research complex with a globaleducational complex to become a core global Knowledge city in Northeast Asia.Target businesses : foreign universities, R&D institutes, Construction machine patrs& materials, LED and medical equipmentArea : 6.27km2Location : Wachon-myeon, Gyeongsan City, Gyeongbuk ProvinceProject period : 2011 - 2020
IncentivesVarious Foreign Investment Beneficiaries - Manufacturers, tourist hotels, general amusement facilities and international seminar halls : Over USD 10 million of FDI. - Logistics and medical facilities : Over USD 5 million of FDI. - R&D facilities : Over USD 1 million of FDI. Beneficial information - Tariff on capital goods : 3 year exemption. Tax benefits - Acquisition and property taxes : Exemption 100% for 10 years and 50% for 3 years. - Income and corporate taxes : Exemption 100% for 3 years and 50% for 2 years. Tax benefits for foreign workers : 30% reduction on domestic income or uniform 15% tax rate applied. Manufacturers : Over USD 30 million of FDI. Logistics : Over USD 10 million of FDI. R&D facilities : Over USD 2 million of FDI. Income and corporate taxes :Exemption 100% for 5 years and 50% for 2 years. Building lots supported and distributed at low price for foreign enterprises. Financial Construction costs of foreigners convenient facilities supported. support National and public property : Rental fee reduced, private contract. Financial support for the construction of main infrastructure like road.Foreign currency Direct payment allowed under the quota of USD10,000 for ordinary trade activities. dealings Employment Exemption from the obligation of covering monthly leave. and labor Allowance of setting unpaid leaves and menstruation leave. environment Worker dispatch industries expanded and the period of dispatch prolonged. Authorized establishment of educational institutions by foreign educational foundation. Benefit for foreign educational institutions : purchase of property, construction ofInternationalized facilities, educational financial support for school management and provision of property. environment Native entrance to foreign schools eased. Employment of foreign teachers by international high schools allowed. Ombudsman office for foreign investors Ombudsman International commercial dispute arbitration center(branch of The Korea Commercial Arbitration Board) Permission for foreign medical facilities by foreigners(pharmacies and general hospitals)Medical service Special permission for foreign licenses(both medical and pharmaceutical) Foreign Extension of channels for foreign broadcasting(up to 20% of general cable broadcasting) broadcasting