EUCCK Membership Directory 2011INVESTMENT GUIDE Central Government 040 Local Government 106 Free Economic Zone (FEZ) 198
CENTRAL GOVERNMENT INVESTMENT GUIDE CENTRAL GOVERNMENT PRESIDENTIAL COMMITTEE ON 040 THE 4 MAJOR RIVERS RESTORATION 068 GREEN GROWTH PROJECT PRIME MINISTER’S OFFICE 046 MINISTRY OF EMPLOYMENT AND 074 (EXECUTIVEOFFICEOFSAEMANGEUM LABOR ( MOEL ) DEVELOPMENTPLANING) MINISTRY FOR FOOD, 080 MINISTRY OF KNOWLEDGE 052 AGRICULTURE, FORESTRY AND ECONOMY ( MKE ) FISHERIES ( MIFAFF ) MINISTRY OF EDUCATION, SCIENCE 060 MINISTRY OF CULTURE, SPORTS 086 AND TECHNOLOGY ( MEST ) AND TOURISM ( MCST ) ASEM-DUO 061 KOREA CREATIVE CONTENT 088 NATIONAL RESEARCH 064 AGENCY ( KOCCA ) FOUNDATION OF KOREA ( NRF ) MINISTRY OF JUSTICE ( MOJ ) 092 MINISTRY OF LAND, TRANSPORT 066 MINISTRY OF UNIFICATION ( MOU ) 098 AND MARITIME AFFAIRS ( MLTM )
Growth was adopted along with the Five-Year Plan for Green Growth. The National Strategy and Presidential Committee on the Five-Year Plan are mid- to long-term (2009~2050) national agendas which are to be implemented through the collaborative efforts between various governmental organizations, Green Growth industries and civil society. The National Strategy is divided into ten specific policy directions: Green Korea (1) effective mitigation of greenhouse gas emissions; (2) reduction of the use of fossil fuels and the enhancement of energy independence; (3) strengthening the capacity to adapt to climate change; (4) development of green technologies; (5) the “greening” of existing industries and promotion of green industries; (6) advancement of industrial structure; Introduction (7) engineering a structural basis for the green economy; At the 60th anniversary of the founding of the Republic of Korea on August 15, 2008, President (8) greening the land, water and building the green transportation infrastructure; Lee Myung-bak proclaimed “Low Carbon, Green Growth” as Korea’s new national vision. This (9) bringing green revolution into our daily lives; and vision aims to shift the current development paradigm of quantity-oriented, fossil-fuel dependent (10) becoming a role-model for the international community as a green growth leader. growth to quality-oriented growth with more emphasis on the use of new and renewable energy 041 resources. Using less energy and ensuring environmental sustainability, “Low Carbon, Green In order to put into action the agendas set out in the National Strategy in a more systemic and PRESIDENTIAL COMMITTEE ON GREEN GROWTH Growth” aims to simultaneously pursue three objectives by creating a synergistic relationship consistent manner, the Korean government revived the practice of the five-year plans, which had between economic growth and environmental protection: (1) to promote eco-friendly new growth been very effective during the early development era of the Korean economy. The first Five-Year engines for the national economy, (2) to enhance the quality of life for the members of the society, Plan for Green Growth, covering 2009 through 2013, is a manifest of the political commitments as and (3) to contribute to the international efforts to fight climate change. well as a blueprint for government actions, containing specific budget earmarks and detailed tasks assigned to line ministries and local governing entities. Under the plan, the government will spendINVESTMENT GUIDEEUCCK Membership Directory 2011 In order to facilitate the realization of the new vision, the Presidential Commission on Green Growth about 2 per cent of the annual GDP on green growth programs and projects that comprise the was established in February 2009. The Framework Law on Green Growth was enforced on April construction of various green infrastructures as well as spending plans for research and 14, 2010. The legislation provides the legal and institutional basis for aligning all national and local development of green technologies. The investments on the infrastructure will be initially much rules and regulations under the overarching vision of green growth. bigger than on R&D due to the ‘New Deal’ element, designed to counter the current economic downturn. However, as the economy To implement the national vision of green growth more effectively, the National Strategy for Green recovers, the R&D portion will be increased.
Presidential Committee on Green Growth Imperatives for a National Strategy To provide a stronger momentum, a presidential CLIMATE CHANGE committee was established on 16 February 2009. Natural disasters, destruction of ecosystems, environmental degradation and pollution pose major threats to The Committee is co-chaired by the Prime Minister humanity. Even with the government’s strong commitment, the fight against climate change still remains a and an eminent scholar, Dr. Soogil Young formidable challenge. In 2007, Korea’s CO2 emissions from fuel combustion reached 489Mt(1.7% of the representing the private sector, and consists of 50 world°Øs total) which is the 9th highest level in the world. To tackle these environmental challenges while members including relevant government ministers simultaneously continuing economic growth, Korea is willing to make changes and transform the nation’s and representatives from private stakeholders. economic and industrial structure in accordance with the low carbon green growth paradigm. The Committee is supported by a secretariat of 60 staff comprised of seconded officials from over 14 government agencies and public/private institutions. The Committee has the mandate to discuss all subjects relevant to pursuing green growth as well as coordinating government works ENERGY CRISIS AND DEPLETION OF NATUAL RESOURCES on this area. If demands for conventional energy sources continue to rise, another global energy crisis may soon be triggered. To curtail the reliance on fossil fuels, Korea will make efforts to acquire new sources of energy, As of December 2010, the Committee has met ten times and meetings were attended by the improve energy efficiency and promote the adoption of an energy-saving lifestyle by its citizens. Korea will 043 President. Important agenda Items were discussed and adopted including the ‘National Strategy strive to curb the use of fossil fuels by making massive investments in the new and renewable energy sector. PRESIDENTIAL COMMITTEE ON GREEN GROWTH By doing so, it will seek to circumvent the fluctuations in the global oil market. for Green Growth,’ and the ‘national midterm greenhouse gas reduction target’. National Strategy for Green Growth SHIFT TO A NEW PARADIGM “Green Growth” will be the centerpiece of Korea’s vision for the next 60 years and will lead to newINVESTMENT GUIDEEUCCK Membership Directory 2011 The National Strategy for Green Growth, with a mid- to long-term (2009~2050) perspective, opportunities for economic growth. As demands for energy-efficient products, eco-friendly businesses and encompasses policy guidelines as well as specific action plans for various entities. It is an green markets increase in the coming years, a “Green Conversion” will be completed to enable Korea to integrated grand plan which was carved out through a collaborative process involving numerous achieve both economic growth and environmental protection. governmental organizations, industry, the academia and civil society. The motivation behind developing the National Strategy for Green Growth has been the necessity of building a comprehensive long-term master plan to address the myriad of challenges exacerbated by both Ten Policy Directions to achieve Three Objectives climate change and resource depletion. The National Strategy for Green Growth envisages three main objectives which are expected to be fulfilled in the process of taking actions in accordance with ten policy directions. The three objectives and ten policy directions are based on the consensus among the civil society, businesses, academia and government. The first objective is to effectively deal with climate change and attain energy independence. Moving beyond fossil fuels will help Korea to achieve energy independence and effectively mitigate greenhouse gas emissions. This objective calls for actions such as setting mid- to long-term mitigation goals, increasing the use of new and renewable energy sources, as well as efficient management of demand for energy. Measures will be taken to strengthen the nation’s adaptation capacities to counter the adverse impacts of climate change. These include improving the climate monitoring and forecasting abilities and securing a stable supply of water resources, among others. The second objective is to create new engines of growth on multiple fronts. This includes the development of green technology, greening of industries, transition to a more advanced industrial structure, and laying the groundwork for a green economy. Emphasis will be placed on increasing strategic investments in the R&D of the green sector, development of green small and medium enterprises, cutting-edge convergence industry and high value-added service industry, the creation of a national carbon emissions trading market, laying the structure for green finance, and tax incentives for eco-friendly activities. The third objective is to raise the overall quality of life for the people and to enhance the contributions to the international community through strong advocacy for green growth. Efforts will be directed toward greening the land and water and building a green transportation infrastructure. As a result, green vehicles will be more widely utilized and bicycles will become the main means of city transportation. Campaigns will be conducted
to promote public awareness and acceptance of green lifestyles. Furthermore, Korea will strive towards <Fiscal Expenditure on Green Growth for 2009-2013> (trillion KRW, %) building its national image as a role-model for green growth by redoubling its efforts for mitigating climate change and assisting developing countries to effectively deal with the adverse impacts of climate change. Key Category Total1) ’09 ’10~’11 ’12~’13 Rate of Increase Total 107.4 17.5 48.3 41.6 10.2 Mitigation of climate Creating new engines Improvement in quality Mitigation of climate change & energy independence 56.9 8.6 29.2 19.2 14.0 change & energy for economic growth of life and enhanced Creating new engines for economic growth 28.6 4.8 10.7 13.1 9.4 independence international standing Improvement in quality of life and enhanced international 27.9 5.2 10.5 12.2 3.6 standing 1) The total amount eliminated overlaps among allocations to projects under the 10 policy directions. 1. Effective mitigation of 4. Development of green 8. Greening the land, water and greenhouse gas emissions technologies building the green transportation infrastructure 2. Reduction of the use of fossil 5. The “greening” of existing 9. Bringing green revolution Global Green Growth Institute (GGGI) fuels and the enhancement industries and promotion of into our daily lives 045 of energy independence green industries Founded in June 2010, the Global Green Growth Institute (GGGI) is a globally represented, non-profit institute dedicated to the promotion of PRESIDENTIAL COMMITTEE ON GREEN GROWTH 3. Strengthening the capacity 6. Advancement of industrial 10. Becoming a role-model for economic growth and development while reducing carbon emissions, to adapt to climate change structure the international community increasing sustainability, and strengthening climate resilience (i.e. green as a green growth leader growth). GGGI is founded on the belief that economic growth and 7. Engineering a structural environmental sustainability are not merely compatible objectives, but basis for the green economy are mutually necessary for the future of humankind.INVESTMENT GUIDEEUCCK Membership Directory 2011 GGGI currently supports several projects in partner countries through program development, implementation, capacity building, best practice sharing, and the provision of grants to local institutions. Through its work, GGGI seeks to position the green growth model as one which is both practical and effective in the pursuit of economic growth and sustainable development. Green Growth Investment Plans GGGI is headquartered in Seoul, Republic of Korea. The envisaged fiscal spending as contained in the Five-Year Plan for Green Growth is 107 trillion KRW (86 billion USD) for 2009-2013. Under the plan, three objectives and ten policy directions will be implemented in an efficient and Vision & Mission predictable manner. The Global Green Growth Institute (GGGI) was founded on the belief that economic growth and environmental sustainability are not merely compatible objectives, but are mutually necessary for - The fiscal budget will be mainly spent on R&D in green the future of humankind. technology, such as solar energy and fuel cells, restoration of the four major rivers and green It is dedicated to supporting the creation and diffusion of a new model of economic growth, known transportation. As the economy recovers, the weight as “green growth”, that integrates objectives for poverty reduction, opportunity creation, and social given to R&D will become more significant. development, with objectives for environmental sustainability and climate and energy security. - Fiscal realities will be appropriately reflected as well as the GGGI supports emerging and developing nations in their efforts to create and implement national mid-term plan covering 2009 through 2013. Budget and local strategies and policies for pursuing green growth. In so doing, GGGI seeks to contribute priority will be appropriately rearranged so that the budget to increasing the effectiveness and impact of national and local action on green growth, promoting for important programs can be speedily implemented. best practice, building capacity, and encouraging international cooperation. Through its work, GGGI will help advance both the theory and practice of green growth. - Roughly 2% of the nation’s annual GDP is allocated to green investment which is twice the amount As a politically neutral source of independent expertise, GGGI will provide a comprehensive set of recommended by the Green Economy Initiative capabilities, skills and services aimed at answering key questions related to green growth planning, advocated by the UNEP (1% of GDP). and play a critical role in the post-Copenhagen landscape.
Vision of Saemangeum Executive Office of Saemangeum Development Planing The City of Neo Civitas, Saemangeum(Ariul) “Creating Tomorrow” The Saemangeum Project is a government-run project with the goal of The Most Attractive Economic Hub in Northeast Asia constructing a global premium city of green growth and a clean environment. The construction of the world’s longest sea dike (33km), which connects Gunsan GLOBAL GREEN WATER HUMAN CULTURE Attractive Living Low-Carbon, Vibrant, Attractive Human-Oriented, Neo Culture Embracing and Buan, is to create 283km2 of reclaimed land and a lake with a surface area of Environment for Green Growth Waterfront City with Multifunctional, Mixed Korean Traditions and Foreign Residents Development Excellent Amenities Use Development Global Cultures 118km2 . This project will transform Saemangeum into the economic hub of Northeast Asia serving not just industrial but also tourism and residential purpose. Land Use Plan 047 Lot configuration PRIME MINISTER’S OFFICE(EXECUTIVE OFFICE OF SAEMANGEUM DEVELOPMENT PLANING) Gunjang National Land of opportunities is being created in Industrial Complex Industrial Zone Saemangeum, Korea Mangyeonggang(river)INVESTMENT GUIDEEUCCK Membership Directory 2011 Yellow Sea Scientific research Zone Scientific research Zone Ecological Agricultural Zone Behind urban city environmental Zone Seohaean New & Renewable energy Zone Expressway Gogunsan Agricultural city Seo Gimjae IC Archipelago Agricultural Zone Agricultural city Dongjingang(river) Agricultural Zone Ariul(Multifunctional city) Buan IC Area for each site and period of development Total(283km2) Phase 1(Until 2020) Phase 2(After 2021) Division Area(km2) Ratio(%) Area(km2) Ratio(%) Area(km2) Ratio(%) Ariul(Multifunctional city) 67.3 23.8 40.4 14.3 26.9 9.5 Agricultural Zone 85.7 30.3 85.7 30.3 - - Scientific research Zone 23 8.1 - - 23 8.1 New & Renewable energy Zone 20.3 7.2 8.8 3.1 11.5 4.1 Saemangeum, at the Center of Pan-Yellow Sea Region Ecological environmental Zone 42.4 15.0 42.4 15.0 - - - Saemangeum is close to a fast growing market, China. - The North East Asia is a huge, attractive market with a population of 1.5billion. Urban site(Agricultural, behind urban city) 14.6 5.2 4.6 1.6 10 3.5 - Beijing can be reached in one hour, and Tokyo in 1.5 hours. Industrial Zone 18.7 6.6 18.7 6.6 - - - 51 cities with population of over 1million are reachable within 3.5 hours. Inner dyke 11 3.9 11 3.9 - -
Land development plan Ariul(Multifunctional city) ∙Area ∙67.3km2 ∙Development period ∙Phase 1(-2020): 40.4km2(60%) ∙Phase 2(2021-): 26.9km2(40%) ∙Managing agency ∙Ministry of Land, Transport and Maritime Affairs, Ministry of Culture, Sports and Tourism, Ministry of Environment, Ministry of Knowledge and Economy, Saemangeum Gunsan FEZ authority ∙Business opportunities ∙Manufacturing sector- Green car, food- processing, high-tech machinery, renewable energy generation ∙Business sector- multinational corporate headquarters/branch office, business park 049 ∙Financial sector- financial institutions PRIME MINISTER’S OFFICE(EXECUTIVE OFFICE OF SAEMANGEUM DEVELOPMENT PLANING) ∙Research facilities- universities, research centers ∙Logistics - storage, warehouse at the new port ∙Service sector- convention center, shopping mall, hotels, restaurants, Ecological environment Zone education, medical facilities ∙Tourism, leisure ∙Area ∙42.4km2 ∙Development period ∙-2030INVESTMENT GUIDEEUCCK Membership Directory 2011 ∙Managing agency ∙Ministry of Environment New & Renewable Energy Zone ∙Land Use ∙Northern part - wildlife habitats and eco park, stopover for migratory birds. ∙Area ∙20.3km2 ∙Southern part - Water quality control ∙Development period ∙Phase 1(- 2020): 8.8km2 facilities, research center, landscaping ∙Phase 2(2021- ): 11.5km2 and forests ∙Managing agency ∙Ministry of Knowledge and Economy, Ministry of Food, Agriculture, Forestry and Fisheries Scientific research Zone ∙Land Use ∙Renewable energy R&D facilities, bio- crop production facilities ∙Area ∙23km2 ∙Development period ∙2021- ∙Managing agency ∙Ministry of Education, Science and Industrial Zone Technology ∙Land Use ∙World class research facilities, ∙Area ∙18.7km2 universities for basic and applied ∙Development period ∙-2020 research, corporate research centers ∙Managing agency ∙Saemangeum Gunsan FEZ authority ∙Major industry ∙Automobiles, car parts, machinery, shipbuilding equipment, renewable energy, new material, convergence technology, radiation fusion technology, Agricultural Zone biotechnology, food processing industry ∙Area ∙85.7km2 ∙Development period ∙-2020 ∙Managing agency ∙Ministry of Food, Agriculture, Forestry and Fisheries ∙Land Use ∙High tech agriculture complex Export- oriented agriculture industry sustainable agriculture and eco-tourism.
Business environment Executive Office of Saemangeum Development Planning Strong government support based on special act - The central government of Korea undertakes the Saemangeum project as a core Head’s Message national agenda providing full support. After 19 years of efforts, Saemangeum reached a historical turning point in April - Special Act on Promotion of the Saemangeum Project ensures institutional support of 2010 with the completion of 33.9km long sea dike construction. The master plan tax incentive, financial subsidies, and regulatory exemption for businesses. for comprehensive development will be announced at the end of this coming February. It will further explain the Saemangeum Project’s goal to transform the vast land of 401km2 into a global premium city dedicated to green growth and Vastness of the land sustainable development in the fields of economy, industry, and tourism. - The state-owned land is as large as 2/3 the size of Seoul - Saemangeum offers a long-term lease program(max. 100years) and land sales at an Located at the heart of a huge global market with 1.5 billion consumers, Saemangeum holds ideal affordable price geographical conditions for a global business environment and will turn itself into the economic hub of Northeast Asia by working with renowned companies that are highly competitive on the global stage. Relevant government ministries and local governments, as well as the Executive Office of Saemangeum Excellent transport infrastructure Development Planning, are committed to providing full support to create the City of Neo Civitas. - The road network will connect the area to expressways and high-speed railroads. 051 - The existing airport and a new port will offer you easy access to Saemangeum We have reclaimed the sea, built up hope, and finally changed the map of South Korea. Now I hope all of you PRIME MINISTER’S OFFICE(EXECUTIVE OFFICE OF SAEMANGEUM DEVELOPMENT PLANING) will join us in filling up Saemangeum with prosperity and creativity. Let’s create a whole new future. Yellow Sea Economic Bloc Prime Minister’s Office, Head of Executive Office of Saemangeum Development Planning - Proximity to China provides you easy access to the emerging market of China. - Located at the center of North East Asia, Saemangeum serves as a strategic base for Lee Byoung-GookINVESTMENT GUIDEEUCCK Membership Directory 2011 the market with population of 1.5billion. Organization Tourism resources and leisure development The Executive Office of Saemangeum Development Planning is organized for promotion and efficient - The natural resources such as Gogunsan Archipelago and Byeonsan Peninsula National management of the Saemangeum Project under the direct control of the Prime Minister’s Office. Park are famous tourist attractions. - Tourism and leisure industry will thrive with a land mark, marina, mega resorts, golf Duties : Integration and coordination of Saemangeum project-related policies course, art centers and other amenities. - Matters regarding the administrative affairs and support for Saemangeum Development Committee - Matters regarding a master plan on land development (including general execution plan) - Matters regarding adjustment of a master plan by land use Industrial hub in North East Asia - Matters regarding enactment and amendment of Saemangeum-related rules - The existing industrial complex in Gunsan will offer Saemangeum synergy effects for - Matters regarding establishment of water-quality improvement plans for Saemangeum industries such as machines, automobiles, shipbuilding, renewable energy and bio - Matters regarding integrated management of disaster, water quality and water quantity - Matters regarding support, advertisement and international cooperation to attract investments in Saemangeum cluster. - Requirements from related organizations, etc. - World class research institutes and facilities will be established to foster an attractive R&D environment. Organization Prime Minister’s Office Executive Office of Development Planning Incentive schemes 82-2-735-1255 The Korean government established the Special Act on Promotion of Saemangeum Project in 2008 to systematically support investors and businesses. Policy Planning Bureau Development Policy Bureau 82-2-735-1257 82-2-735-1258 Tax incentives and financial subsidies for businesses - Tax exemption programs will facilitate investment and business operation in Saemangeum. Policy Coordination Environmental policy Project Management Development Culture and Public Investment Division Division Division Planning Division Relabions Division Promotion Division - Subsidies for employment and training can be best utilized by businesses. 82-2-3210-2867 82-2-3210-2897 82-2-3210-2891 82-2-3210-2784 82-2-3210-2657 82-2-3210-2660 Facilities and services for residents Address : 5F Central Government Complex Extension Bldg.,Sejongno, jongno-gu, Seoul, Korea(110-787) - Special Housing service for foreigners and interpretation & translation service will be provided. Fax : 82-2-3210-2685 E-mail : email@example.com - International schools and medical institutions will make for convenient living conditions. Homepage : http://smgc.go.kr
MKE Ministry of Knowledge Economy Core responsibilities Redefining Korea Now that we are at the threshold of a new global economic system-which, it is widely agreed, is based on the concept of a “knowledge economy”-Korea is working to transform itself into a global in a changing global environment economic superpower. MKE for the 21st century MKE is leading the way in three key policy areas-trade, energy and industry. Building upon Korea’s traditional strengths, which lie in core industries such as shipbuilding, MKE is also taking steps to equip the nation with cutting-edge R&D, advanced IT, and value-added goods and services. We are making bold strides in our efforts to nurture future growth engines, secure a sustainable supply of energy, improve living standards, develop breakthrough technologies and ideas, and build The Ministry of Knowledge Economy is the result of a transformation of the Korean economy that constructive partnerships. Every one of these measures underscores Korea’s potential as a major 053 took place over 60 years. MKE’s earliest precursor was the Ministry of Trade and Industry, player in the new global economic environment. MINISTRY OF KNOWLEDGE ECONOMY established in 1948; others included the Ministry of Energy and Resources; the Ministry of Trade, Industry, and Energy; and the Ministry of Commerce, Industry and Energy. Strategic industrial policies In 2008, acting upon his election mandate to invigorate the Korean economy, President Lee Myung-bak launched the Ministry of Knowledge Economy. This Ministry encompasses functions Throughout its history, Korea hasINVESTMENT GUIDEEUCCK Membership Directory 2011 that were previously the responsibility of the former Ministry of Commerce, Industry and Energy found its economic strength in a solid and diverse industrial base. As and the Ministry of Information and Communication, as well as some that were under the the nation aspires to make a further jurisdiction of the Ministry of Finance and Economy and the Ministry of Science and Technology. leap, MKE is paving the way for a promising future where knowledge is the primary engine of the Korean economy, driving productivity and growth. To make this vision a reality, MKE is pursuing a wide range of strategies with a particular focus on these five objectives: building a favorable investment environment; promoting the growth of local economies; establishing an innovative R&D system; upgrading core industries; and supporting small and midsize enterprises. After conducting a thorough analysis of Korea’s strengths, the Korean government has selected 17 new growth engines that we intend to actively foster and promote. These 17 industries fall into three broad categories: green technology, high-tech convergence and high value-added service. MKE is taking the lead role in promoting 10 of these promising business areas: renewable energy, low-carbon energy, a green transportation system, LEDs, broadcast and communications media, intelligent robots, information technology, biopharmaceuticals and medical devices, nano- convergence, and cultural content and software.
New Growth Engines in 3 Sectors MKE’s organizational structure ※ For a complete list of new growth engines, scroll over the following sectors. MKE is composed of five offices, 16 bureaus and 68 divisions under one Minister and two Vice ※ MKE initiatives are highlighted in green. Ministers. We also have more than a dozen affiliated organizations - Korea Post, the Korean Agency for Technology and Standards, the Korea Trade Commission and the Office of Free Economic Zones, just to name a few. New Growth Engines Organizational Chart Green Technology High-Tech Convergence Value-Added Service Minister Spokesperson New growth engines New growth engines New growth engines Public Relations Division / Media Relations Division - Renewable energy - Broadcast and - Healthcare Director General for Audit & Inspection Audit Inspection Division technologies communications media - Green financing - Water treatment technologies - Intelligent robots - Cultural content and software Vice Minister for Industry and Technology Vice Minister for Trade and Energy 055 - Low-carbon energy - Biopharmaceuticals and - Education General Service & Personnel Division technologies medical devices MINISTRY OF KNOWLEDGE ECONOMY - MICE and tourism-related Office of International Trade & Investment - Green transportation systems - Information technology industries Office of Planning & Coordination ∙Director General for Trade Trade Policy Division / Trade Promotion Division / Export & Import - IT convergence citywide - Food Industry ∙Director General for Policy Coordination Planning & Budget Division / Public Management Division / Division / Export Control Policy Team - LEDs - Nano-convergence Regulatory Reform & Legal Affairs Division / Information ∙Director General for Trade & Industrial Cooperation Management Division / Evaluation & Customer Relations Division Trade Cooperation Division / Europe & Americas Division / Asia &INVESTMENT GUIDEEUCCK Membership Directory 2011 ∙Director General for Emergency Planning Oceania Division / China & Russia Division Contingency Planning Division ∙Director General for Cross-Border Investment Foreign Investment Policy Division / Foreign Investment Promotion Office of Industrial Economic Policy Stimulating international trade and investment ∙Director General for Industry & Knowledge Economy Division / Overseas Investment Division / Inter-Korean Economic Cooperation Division Industrial Economic Policy Division / Service Industries Division / SME As an advocate of freer and more active trade, MKE places Advocacy Division / Industry & Environment Coordination Division / Office of Energy & Resources special emphasis on three areas: First, we seek to maximize Distribution & Logistics Division / Better Business Climate Division ∙Director General for Energy Policy Korea’s great potential with a solid, broad trading platform. Energy & Resources Policy Division / Climate Change Policy Division / ∙Director General for Technology Policy Second, we are intensifying ties with major trading partners and New & Renewable Energy Division / Energy Technology Division Industrial Technology Policy Division / Industrial Technology welcoming new partnerships. Last, we strive for a business- Development Division / Technology Market Division / Technology ∙Director General for Energy Industries friendly environment so as to become a more attractive Diffusion & International Cooperation Division / Technology Petroleum Division / Gas Division / Electric Power Division / Energy destination for investors. Infrastructure Division Safety Division ∙Director General for Regional Economic Development Policy ∙Director General for Energy Resources Development & Regional Economic Policy Division / Regional Industry Promotion Nuclear Power Division / Industrial Complex Division / Regional Investment Resources Development Policy Division / Oil & Gas Development More sustainable and greener energy policies Promotion Division / Corporate Relocation Division Division / Mineral Resources Division / Nuclear Power Industry Division / Nuclear Power Plant Cooperation Division Energy initiatives are also at the heart of MKE’s responsibilities. Office of Industries In line with global trends, MKE is committed to promoting the ∙Director General for Emerging Industries ∙Energy Efficiency Bureau Growth Engine Policy Division / Biotech & Nanotech Division / Energy Efficiency Policy Division / Energy Efficiency Management wiser use of energy and is actively engaging in energy Software Policy Division / Software Promotion Division / Design & Division / Energy Cooperation Division cooperation projects and efforts to expand the use of cleaner Brand Division / Robot Division energy technologies. In addition, we are drafting ∙Director General for Electronics & IT Industries environmentally friendly economic policies that will usher in a Electronics & IT Policy Division / Information & Electronics Industries low-carbon society. Division / Semiconductor Display & Electric Industries Division / Information & Telecommunication Division / IT Innovation Division At the same time, MKE is working to ensure a stable energy ∙Director General for Manufacturing Industries supply to meet the nation’s growing demand. To this end, we Components & Materials Division / Machinery, Aerospace & Defense are pursuing a long-term strategy emphasizing overseas energy Industries Division / Metals & Chemicals Division / Textile, Apparel & development projects. Consumer Goods Division / Automobile & Shipbuilding Division
Foreign direct investment and MKE Incentives for foreign companies investing in Korea Foreign direct investment (FDI) is crucial to the Korean economy. As of 2008, it accounted for 13% FDI incentives exist to alleviate the burden of establishing new business operations and to thank of sales revenue and 6% of employment in the manufacturing sector. However, Korea still needs to foreign investors for all they contribute to the Korean economy. The government currently offers tax attract more FDI as it represented only 13.3% of the nation’s GDP in 2009, a figure far below the relief to foreign companies with the potential to contribute significantly to the Korean economy. We global average of 30.7%. In light of these circumstances, the Korean government is eager to also provide affordable land and assist with related administrative procedures. Foreign-invested improve its business environment through deregulation and we are strongly promoting FDI. MKE is companies also benefit from cash grants and other financial support. at the forefront of these efforts. FDI policy - Tax relief Certain foreign-invested companies are eligible for tax relief on Since the onset of the financial crisis in 1997, the Korean government has been active in its efforts corporate, income, local and dividend income taxes for five to to attract foreign direct investment to Korea; passage of the Foreign Investment Promotion Act in seven years. These include companies operating in the area of 1998 greatly facilitated these efforts. The Act opened up 99.8% of Korea’s industries to foreign industry support services, or in certain high-tech business areas investment and provided significant protection for investors’ interests. Under the Act, foreign specified by the Ministry of Strategy and Finance. Companies investors also receive incentives including tax breaks, cash grants and affordable land. involved in manufacturing, logistics, R&D, leisure or hospitality 057 To make Korea a more business-friendly country, the government has established a are also eligible if they are based in Korea’s Foreign Investment MINISTRY OF KNOWLEDGE ECONOMY comprehensive action plan to improve the foreign investment environment; the plan is subject to Zones or its Free Economic Zones. Customs fees may be reduced review every three years. MKE is taking the lead in implementing it in cooperation with 11 other or waived for capital goods, as long as the import declaration is ministries and eight government agencies. completed within three years of the date the investment report is filed. Under the action plan for the years from 2008 to 2010, Korea has made numerous achievements.INVESTMENT GUIDEEUCCK Membership Directory 2011 Corporate taxes were reduced; a new system has been introduced to better protect intellectual - Cash grants property rights; administrative procedures have been streamlined, making it easier to establish an industrial complex; the maximum amount of foreign capital that can be lent or borrowed without The purpose of Korea’s cash grant program is to attract FDI in business areas with exceptional potential to the need to report the transaction has been increased; and international financial reporting benefit the national economy. The amount of each cash grant is determined through negotiations between the standards have been adopted. At the same time, the living environment for foreign businesspeople investor and the government. has improved dramatically-there are more educational and healthcare facilities equipped to meet To be eligible for a cash grant, a foreign investor must own at least 30% of the equity in an industry support service or high-tech business, or in a greenfield investment project in parts and materials manufacturing. their needs, a more convenient processing system at customs for foreign businesspeople living in R&D laboratories and construction/expansion projects with significant job creation potential are also eligible. or visiting Korea, a new English radio station, and more traffic signs in English. FDI to establish a regional headquarters of a multinational corporation or a business pertaining to a regionally strategic industry with the potential to make a significant contribution to the local economy may also confer eligibility. The Foreign Investment Committee will deliberate such cases individually. - Affordable land and facilities The Korean government makes industrial sites within specially designated zones available to all foreign- invested firms that meet certain requirements. Land within four categories of zones is provided either free of charge or at low cost: Stand-Alone-Type Foreign Investment Zones, Complex-Type Foreign Investment Zones, Free Trade Zones and Free Economic Zones. For occupants of these zones, there are not only benefits in terms of location costs but also many other beneficial factors. Tax and customs tariff reductions, as well as other forms of financial support, may apply if certain conditions are met. - Financial support Financial support is provided to help with hiring, staff education and training, and projects to build infrastructure within a Foreign Investment Zone or to enhance the living environment within it. Aid under this program is currently extended to companies in which the foreign equity stake is at least 30% or in which a foreign company or individual investor is the largest shareholder.