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Invest Seoul

  1. 1. Contents02 Seoul04 Invest in the Future14 Invest in Innovation16 Digital Media City20 Yeouido International Financial District24 Magok District28 The Seoul Grand Park Renovation Project32 Yongsan International Business District36 Invest in Success
  2. 2. Se10th in the 2010 Global City IndexThe U.S.-based global management consultingfirm A.T. Kearney ranked Seoul as the world’s10th most globalized city in its 2010 GlobalCity Index which analyzed business activity,human capital, information exchange, cultural 16th in 2010 Ease of Doingexperience and political engagement in 65 Business Indexcities around the world. The World Bank’s Ease of Doing Business Index of 180 countries rated Korea as the 16th most business-friendly country in the world, up from 23rd in 2008 and 19th in 2009 (12th among OECD members, 6th among G20 countries).
  3. 3. 16th in 2011 Global Financial Centres Index (GFCI) According to the results of the 9th Global Financial Centers Index, Seoul continued to climb for the fourth straight year to rank 16th. In particular, Seoul was named the next potential financial hub for the third consecutive year and was selected as one of the cities where new offices of financial firms were most likely to be opened.9th in 2010 Global City Competitiveness ReportAccording to the 2010 Global City Report by the Chinese Academy ofSocial Sciences which conducts a comprehensive evaluation of a city’sworkforce; corporate, living and business environments; creativity,innovation, and social environment; and industrial competitiveness ofeach sector, Seoul was ranked as the 3rd most competitive city in Asiaand 9th in the world out of 500 cities. 9th in Worldwide Centers of Commerce Index 2008 In the Mastercard Worldwide Centers of Commerce Index, which offers a comprehensive comparative ranking of 75 of the world’s leading global cities and their role in driving global commerce, Seoul was ranked 9th in both 2007 and 2008. Seoul a global city with international competitiveness! 02 • 03
  4. 4. Invest in the FutureSeoul is an attractive city brimming with arts and culture built upon her 600-year history as the capital of Korea and natural beauty represented by the scenicHan River and Namsan. In terms of location, economic scale, business and livingstandards and growth potential, Seoul boasts competitive advantages overother Northeast Asian cities. This urban competitiveness is the reason whyglobal investors are taking notice of Seoul.Seoul at a Glance Korea Seoul Population(in 2010) 48,875,000 10,039,000 Number of foreigners(in 2009) 870,636 255,749 Language Korean Average income per household(in 2008) US$2,781 US$2,915 Foreign firms(in 2008) 9,612 5,992 GRDP/GDP(in 2009) US$948.14 billion US$229.09 billion Machinery, automobiles, steel, shipping, construction, electronics, Key industries semiconductor, petrochemical and telecommunication * as of January, 2011
  5. 5. Attractive business environmentThe center of the Northeast Asian economyAs the epicenter of the global economy moves to Asia, Korea is being recognized as a force that will drive the world economy in thefuture. Korea demonstrated her potential by becoming the first OECD member country to overcome the global financial crisis in 2008and successfully hosting the G20 Summit in 2010. Based on Korea’s favorable geographical location, the country is serving as anoutpost for entry into the Asian market, which possesses limitless growth potential. As the capital of Korea, Seoul is gaining globalattention as a key city propelling the growth of the Northeast Asia economy. 4hours~ 3~4hours 2~3hours 1~2hoursA bridge between Northeast Asia and the worldLocated between China and Japan, Seoul offers easy and convenient access to the world’sleading economies. It is two hours away from major Northeast Asian cities including Beijing,Shanghai, Tokyo and Osaka, and just three hours away from 43 cities with populations ofover 1 million.Healthy real economy and domestic marketAmid projections by major international organizations that the Northeast Asian economy will grow to become equal in size to those of the EU and NAFTAby the year 2020, Korea is continuing to grow at a dynamic pace on the back of her globally competitive manufacturing industry. In 2010, the country wasranked 7th in terms of exports, 9th in population among OECD members and 11th in the world in GDP.FTA StatusSeoul is revamping herself as a market of major importance wheretechnologies and services engage in limitless competition based onKorea’s aggressive and strategic free trade agreements.
  6. 6. Advanced transportation infrastructureSeoul is serviced by a very convenient mass transport system for business. Comprisingof Incheon International Airport, named the world’s best airport; Korea TrainExpress (KTX), the high-speed railway connecting Seoul to the entire countrywithin three hours; an extensive metro subway system with nine lines and bus-onlylanes for a congestion-free commute, Korea’s advanced transport system is beingbenchmarked by many foreign governments. State-of-the-art airport connecting Korea with the worldTravel between Incheon International Airport and downtown Seoul became significantly moreconvenient with the opening of Incheon International Airport Railroad (travel time: 42 minutesfrom the airport to Seoul Station). Since 2005, Incheon International Airport has been namedthe Best Airport Worldwide in Airport Service Quality for the sixth consecutive year (2006-2011)by Airports Council International (ACI). In addition, Gimpo International Airport, a 30-minutedrive from downtown Seoul, is gaining in popularity as a short-distance business airport withsuperior urban accessibility and short waiting times at immigration. Currently, the airport providesa total of 336 flights on four international routes, connecting Seoul to Haneda (Tokyo), Nagoyaand Osaka (Kansai) and Hongqiao (Shanghai), while plans are underway to add more internationalservice in the near future. Incheon Airport compared to Major Airports in Asia, 2009 Invest in the Future Incheon(Seoul) Pudong(Sanghai) Narita(Tokyo) Airlines served 62 53 59 Cities served 177 90 98 Transit passengers 5.2 million - 4.5 million % of transit passengers 18.5% 15.4% 18.2% * Source: Seoul Finacial Forum, 2010 Attractive business environment 06 • 07
  7. 7. World leading IT infrastructureKorea is an IT powerhouse where foreign investors show the highest level of satisfaction in the country’s information and communicationtechnology services. In addition to the highest broadband Internet penetration rate among OECD nations, Korea leads the world inbroadband Internet quality for the second year in a row (2010 Oxford University survey results).No.1 in Global E-Government SurveySeoul boasts the best e-government in the world where administrative systems are smoothly integrated using information technology. Seoul claimed theNo.1 spot in the Rutgers Global E-Governance Survey four consecutive times. The survey is sponsored by the United Nations Department of Economic andSocial Affairs and the American Society for Public Administration and co-sponsored by E-Governance Institute of Rutgers University and SungkyunkwanUniversity’s Global E-Policy and E-Government Institute. Evaluation of e-government, the world’s 100 cities Ranking Score Ranking City(Country) (2009) (2009) 2003 2005 2007 2009 1 Seoul(Korea) 84.74 1 1 1 1 2 Praha(The Czech Republic) 72.84 - 14 15 2 3 Hong Kong(China) 62.83 2 4 2 3 4 New York(USA) 61.10 4 2 9 4 5 Singapore(Singapore) 58.81 3 6 4 5 6 Sanghai(China) 57.41 5 3 - 6 7 Madrid(Spain) 55.59 40 54 5 7 8 Vienna(Austria) 55.48 - 37 10 8Korea’s highly competitive IT industry No. 1 _in the ICT Development Index (ICT- IDI) No. 4 in Digital Rankings by the Economist Intelligence No. 5 _in the Network Readiness Index by International Telecommunication Unit (EIU), a research and advisory firm under (NRI) by the World Economic Union (ITU) the United Kingdom’s Economist Group Forum (WEF) * Source: “A comparison of the IT Industry in G20 nations” report by the National IT Industry Promotion Agency, 2011
  8. 8. Home to an ample highly skilled workforceKorea’s high caliber human resources are a driving force behind the advances of the country’s IT, shipbuilding, electronics and automotiveindustries. Major universities in Seoul offer English-language MBA courses and promote exchange programs with overseas universitiesto nurture a highly skilled workforce that will promote Seoul’s continued growth.Abundant talent poolCurrently, Seoul is home to a total of 400 institutions of higher learning including junior colleges, universities and graduate schools, all of which fostertalented individuals in 7,000 diverse and specified areas. More than 40 percent of Seoul residents hold a bachelor’s degree or above, while 54 universities inSeoul confer master’s and doctorate degrees to 35,000 students annually. In addition, Seoul is a treasure trove of high quality talent, with 75,000 devotedresearchers working in 2,466 research centers (69 affiliated with universities and 2,937 with businesses). Annual number of graduates holding a bachelor’s degree or higher Seoul Beijing Hong Kong 572,000 persons 210,000 persons 43,000 persons 76 per 10,000 people 121 per 10,000 people 62 per 10,000 people * Source: Survey by KOTRA’s Korea Business Center, 2009 Attractive business environment 08 • 09 Invest in the Future
  9. 9. Exceptional living environmentBefitting her status as the 10th most globalized city in the world, Seoul offers a wide range of care and support for foreign residents.To ensure a convenient and satisfying living environment, Seoul is establishing a diverse array of programs and creating a betterinfrastructure in regard to housing, education and medical services.Expanding residential facilities for foreign residentsSeoul has been operating apartments for rent for foreign residents since 2008, while plans are in place to build more units. DMC VILLE Scale: 175 homes in 4 building units Site Area 9,313m3, Gross Floor Area 30,498m3
  10. 10. Active support for the construction of international schoolsCurrently, there are 21 international schools in Seoul with an additional two slated to open in 2012 and 2013, respectively. Dulwich College, one of Britain’smost prominent schools opened a local branch in September 2010 and the New York-based private academy, Dwight School, is to follow suit in September2012.Yongsan International School DMC Japanese School Banpo UK “Dulwich College Seoul” DMC USA “Dwight School”(Opened in Aug. 2006) (Opened in Sep. 2010) (Opened in Sep. 2010) (to be open in 2012)Building a medical center exclusively for foreign nationalsFourteen medical centers for foreigners are in operation at general hospitals in Seoul. Interpretation is available 24 hours a day to ensure non-Koreanspeaking nationals receive accurate medical services at any location and at any time. Exceptional living environment 10 • 11 Invest in the Future
  11. 11. Seoul Global Center a one-stop administrative services for foreign residents of SeoulAs part of an effort to improve living conditions for foreigners, Seoul Metropolitan Government launched the Seoul Global Center in 2008, offering comprehensiveand in-depth services to help foreigners adjust to living in Seoul, free of charge. In addition, foreigners can use the Seoul Global Center services at GlobalVillage Centers conveniently located at seven foreign resident communities across the city. Comprehensive Multilingual Counseling Service Available Languages - Korean, English, Japanese, Chinese, Vietnamese, Mongolian, Tagalog and Russian · Counseling service on living in Seoul: education, housing, medical services, transportation, consumer services, and banking · Counseling on matters related to life issues such as professional consulting service : labor, legal issues, taxes, real estate, etc · On-site consulting services are provided on Wednesdays and Sundays in areas which are densely populated by foreigners Comprehensive Administrative Service · Immigration Branch Office(Extension of stay and the issue of various certificates) · Driver’s License · Banking(Opening a bank account, obtaining a credit card · Signing up for a mobile phone · Information on tours in Seoul · Consulting services on taxation and national pension Education and Exchange Program · Korean Language Class · Life information seminar for newly-arrived residents · Information fair that provides information on living in Seoul to foreign residents · Seoul Town Meeting(A venue for collecting opinions to improve the life of foreign residents in Seoul) Business Support · Business consulting service on general consultation on establishing foreign companies, taxation, accounting, and law · Business start-up school · Meeting foreign business people, mentoring programs Location_3F, Korea Press Center, 124 Sejong-daero, Jung-gu, Seoul Tel_02-2075-4130~40 Fax_02-723-3206 Webcite_
  12. 12. The urban competitiveness of Seoul from a foreign resident’s perspective According to a survey of 108 long-term foreign residents of Seoul (having resided in Seoul for 5-10 years) conducted by McKinsey in October 2010, Seoul’s urban competitiveness is continuing to improve in most areas. Infrastructure Business environment Living environment Invest in the Future Personal attachment to Seoul Seoul Global Center | Urban competitiveness of Seoul from foreigners’ perspective 12 • 13
  13. 13. Invest in InnovationSeoul is developing diverse policies and expanding support to develop herselfinto a first rate business city and emerge as the preferred choice of investors.Leveraging high-caliber human resources and Korea’s leading edge in informationcommunication technology, Seoul is pursuing groundbreaking projects suchas the DMC, Yeouido International Finance Center, Magok District, and SeoulGrand Park to drive future growth. Digital Media City Yeouido International Financial District Magok District The Seoul Grand Park Renovation Project Yongsan International Business District
  14. 14. Di Me Ci Those who tell stories will rule the world Danish futurist Rolf Jensen predicted in his 1990 book, “Dream Society,” that unlike the information-based societies of the present, the future will be ruled by those who tell inspiring stories and capture people’s imagination. Digital Media Center (DMC), a world class complex for developing, producing and distributing high-tech media and entertainment content, will become a mecca for creating stories that move people through emotion-based motivation.
  15. 15. OverviewDMC was developed as part of the Sangam New Millennium City development projectaimed at creating a new, eco-friendly and future-oriented urban center in Nanjido,the former location of a massive waste disposal site, and its surrounding area. Theobjective is to create a world leading digital media and entertainment cluster fusing DMCenvironment and technology, culture and industry with investment and innovation. Status of remaining sites As of February 2011, 44 of 51 plots (86%) are occupied Category Use Lot No Site area(m2) Floor space index(%) Building coverage ratio(%) Building height(m) Recommended Hi-tech B1 7,140 800 60 61.5 function area facility B4-2 2,055 600 60 52.0 Location Sangam New Millennium City Sangam-dong, Mapo-gu, Seoul General Commercial B3 7,209 800 60 68.0 function use B6-1 5,381 400 60 80.0 Area 569,925 m2 area I3 6,166 600 60 100.0 Period 2002 ~ 2014 I4 6,324 600 60 100.0 I5 8,203 600 60 100.0 Media and Entertainment-related Industries Target (Television, film, animation, games, music, digital education) sectors Software and IT-related services List of Tenant Businesses(Attracted business types 293, as of February, 2011) Invest in Innovation Type of business Company Type of business Company Korea Game Developers’ Association, Korea Games Society, NeoWiz E&C, Dongyang Online, HW Fuji Zerox Asia Pacific, PTI Ltd., SRC, JOOYONTECH Co.,Ltd., etc. Games Gravity, E-Mir Entertainment, Game Incubating Center, and Geo Interactive, etc. Hyundai Card, Daesung Holdings, E-Sum Tech, Human Lab, HK Car, Site On, SW Broadcasting CJ Media, CJ TVN, KBS Media and KBS I, etc. Access Seoul, and DS Ivy, etc. Imaging CJ Entertainment, KBS Media and Vietnam Multimedia Corp. Korea, etc. Education and Research Daesung Holdings Education Contents, Mentors Capital co.,Ltd., etc. Film MnFC, Korean Film Council, Visual Story Factory and Cheongeoram, etc. Korea Creative Contents Agency, Korea Federation of Copyright Communications, Internet Communications and Nemo Communications, etc. M&E Other Ministry of Culture and Tourism Intellectual Property Division, Korea Broadcast Publishing, Media Route DSP, Mass C&G, Dreamsco, Seoul Design Creation Studio and Art House , etc. Communications Pantech, LG U+ and Gel Line, etc. Korea Trump GmbH, EBM Papst Korea, Multivak Korea, Renew System, Daesung Global IT Korea Honeywell, Woori Technologies, LG CNS and Korea Electronics Technology Institute, etc. Other Network, Korea Electronics Association, etc. BT Bionea, I-gene, Environment Bio, Advanced Bio Technology and Ecowell, etc.
  16. 16. Project Details and expected benefits Seoul Lite Seoul Lite, a 640-meter skyscraper, will be built as a DMC landmark to become a future-oriented, environmentally-friendly symbol representing Seoul. Slated for completion in 2015, this mega project with a total estimated cost of KRW 3.3 trillion (approximately US$3 billion) is being constructed to meet Seoul’s highest eco-friendly rating of platinum. Seoul Lite will consist of a complex business tower housing a luxury hotel, “green” office space and residential facilities, an upscale shopping space and culture and exhibition centers, thus allowing for multi-dimensional experiences. The skyscraper is expected to create 86,000 jobs, KRW 11 trillion in added production and KRW 2 trillion in added value. Facility plans per floor Floor Facility Gross floor area Transmission tower 128~133F Observation deck 3,519.29m2 103~127F Luxury hotel 55,707.22m2 84~102F Family hotel 60,280.71m2 Business entity Seoul Lite Tower Co., Ltd. 50~83F Co-op 89,326.70m2 Period 2009.3 ~ 2015 9~49F Offices, Community facilities 131,974.76m2 Location F1, F2 sites in the DMC Complex 8~9F Convention center, Cinema 23,960.59m2 Height: 640m (133 floors above ground, 9 floors below ground) - No. 2 in the world B2~9F Department store, Shopping mall 125,938.49m2 Scale Total floor area: 724,675m² - No. 1 in the world B1F, 1F Aquarium, Concert hall, Corporate PR center 16,935.14m2 Facilities Complex business center, office, cultural facility, hotel, residence Total floor area 507,642.9m2 Building density Floor space index: 1,000%, Building coverage ratio : 60% Digital Media Street (DMS) Digital Media Street, the main road in DMC, is the world’s first street that wholly embraces a ubiquitous setting. When completed, Digital Media Street will showcase and implement products from the research efforts of DMC tenant companies, serving as a test bed for state-of-the-art new technologies. The Street will materialize the vision of a futuristic city along with Seoul Lite by featuring various cutting-edge facilities such as smart lamplight IP-Intelight, information kiosks called Info-booths, electronic banners and various special installations symbolizing the DMC.
  17. 17. Mecca of IT·Digital Media Content Industry The DMC is well positioned to become a center of the global IT industry by attracting the top-level IT and digital media contents companies and personnel. Seoul is stepping up efforts to nurture the DMC into the center of “Hallyu” (the “Korean wave”) and cultural content production in Northeast Asia. To this end, the city is planning on building a visual/cultural complex complete with movie sets, the world’s largest computer game production base and a Hallyu exhibition center and theme park where people can experience new games and animation at the world’s largest e-stadium. The DMC currently houses a total of 22,200 people from over 290 local and overseas IT and media contents companies, with these numbers expected to increase to 80,000 employees and 700 companies by 2015. Tenant companies in the DMC are engaged in various networking activities and frequently hold small group study meetings, seminars and regular forums such as DMC CoNEt and DMC tenant company council, international conferences and seminars.Business OpportunitiesAt present, seven lots in the High-Tech Function Area and Commercial Function Area are available for purchase. The supply notice for theselots is available on the DMC Web site ( and in various media outlets. Meanwhile, information on renting space at theDMC High-Tech Industry Center, DMC Industry-Academia R&D center and other offices within the DMC complex is available on the DMC Web site. Incentives for foreign investors Item Incentives Expanded incentives - Allows installment payments for a period of up to 20 years - Applies a 4-percent annual interest rate on installment payments when purchasing land - Applies a lower designated use ratio than for domestic firms (60%) - Eligible businesses: Foreign investors and foreign investment zone engaging in high-tech business and industry-supporting service business Tax breaks - National tax (corporate, income taxes): 100% exemption for the first five taxable years, 50% reduction for two years thereafter x foreign ownership - Local tax (acquisition, registration taxes): 100% exemption for the first ten taxable years, 50% reduction for five years thereafter x foreign ownership Invest in Innovation · Land sale plan: For certain plots of land within the DMC, bonus points will be awarded during the business plan review · Supply of rental office space: Priority is given to foreign companies when they move into rental office buildings and venture-related facilities provided at an affordable price by the City of Seoul. · Supply of rental accommodation: Seoul provides convenient living conditions for foreign residents by supplying rental housing solely for foreign nationals. · Benefits in foreign investment-related legislation: A region designated as a foreign investment zone or a foreign investment that qualifies as an industry-supporting service or a high technology business will be eligible for benefits including reduced national and local taxes, financial support and exemptions from other charges pursuant to the Foreign Investment Promotion Act and related ordinances of the City of Seoul. · Long-term site and building lease: Foreign companies can rent land or buildings for a maximum of 50 years (contract extension possible if necessary) at an affordable rate. For more information, please visit the DMC Web site ( Digital Media City 18 • 19
  18. 18. Yeo Inter Fi Dis Building the Future of Global Finance Industry in Yeouido From the negative effects of the recent global financial crisis which was brought on by the 2007 subprime mortgage crisis, Korea demonstrated the fastest recovery among OECD member nations. To date, Korea continues her strong growth. As the center of the global economy shifts to Asia, competition between financial hubs in the Asian region is getting more intense. Seoul’s Yeouido district is home to a high concentration of financial companies that form the optimal financial sector. The area is set to be developed into a financial hub of Asia by utilizing an object economy that surpasses that of Hong Kong and Singapore.
  19. 19. Yeouido Invest in InnovationLocation Yeouido-dong, Yeongdeungpo-gu, SeoulArea 3,976,788 m2Target Financial, consulting, legal and accounting firms,sectors regional headquarters of multinational corporations
  20. 20. OverviewIn 2009, the Korean government designated Yeouido, Seoul as an international financial center in an effort to strengthen the competitivenessof the financial industry and to promote advancements in the market. Within Yeouido is the International Financial District, measuring 3,976,788 m2in area, which will be composed of a central business district at its center, a business support district nearby, and a residential district alsolocated in the vicinity. Once completed, it will become a world-class multifunctional city that combines economics, culture and tourism.Project Details and expected benefits Formation of Korea’s leading financial district and infrastructure Being the home of key government organizations such as the National Assembly, the Financial Supervisory Service, and the Korea Capital Market Institute, as well as financial companies, Yeouido is considered Korea’s leading financial district. Among the 291 financial organizations in Seoul, headquarters of 93 of these companies are located in Yeouido. In addition, 42 out of 69 asset management firms and 8 out of 11 futures firms are located there. Yeouido already possesses the necessary infrastructure for expanding and improving the financial district that is centered around the asset management industry. An Utopia in the City Thanks to its geographical location and convenient transportation, Yeouido allows easy access to Incheon International Airport, other parts of Seoul and the surrounding region. The Han River, Saetgang Ecological Park, and Yeouido Park make Yeouido a utopia within the city for enjoying the clean natural environment. In the convenient business and residential environment that the “City within a City” provides, the professionals of multinational financial companies will demonstrate their full potential and secure strong competitiveness.
  21. 21. The Landmark of Northeast Asia’s Financial Hub - IFC Seoul IFC Seoul is one of the core projects of Seoul’s Financial Hub Project. Designed by the world-leading architectural studio Arquitectonica, IFC Seoul is expected to be completed by 2012. Served by a direct connection to Yeouido Station, three grade-A office buildings, the five-star Conrad Hilton Hotel, and the IFC Mall’s three-story luxury shopping space, IFC Seoul will provide a world-class business environment and a refined lifestyle. Address 23, 23-1 Yeouido-dong, Yeongdeungpo-gu, Seoul Area 33,058 m2 (gross floor area) Period 2006 ~ 2012 One IFC (32 floors, 7 underground floors) Two IFC (29 floors, 7 underground floors) Facilities Three IF (55 floors, 7 underground floors) IFC Mall (3 underground floors) Hotel (38 floors, 7 underground floors, the Conrad Hilton Hotel) Target Financial, consulting, legal and accounting firms, sectors regional headquarters of multinational corporationsBusiness OpportunitiesFinancial companies, regional headquarters of multinational corporations, consulting firms and legal firms can move into the IFCSeoul Office Tower, which is due to be completed in 2012. Invest in Innovation For inquiries, please contact _ Tel: 82-2-2171-2794~5 / E-mail: Yeouido International Financial District 22 • 23
  22. 22. Ma Dis Creating and researching the cutting-edge technologies in the world IT (Information Technology), BT (Bioengineering Technology), GT (Green Technology) and NT (Nano Technology) are the most important fields for fulfilling the desire for a healthier and more convenient life, and to cope with the environmental crises that global society faces today. As the nations fifth largest investor in R&D, Korea is providing unsparing support to the advanced knowledge industries that will drive the future, among which include IT, BT, GT and NT. Seoul is also developing an advanced knowledge cluster in the Magok District to serve as a world-class, eco-friendly R&D hub. Start your investment in Seoul, the advanced knowledge-based city of the future.
  23. 23. MagokLocation Magok-dong and Gayang-dong, Seoul Site 3,665,336 m2 - land for R&D 736,944 m2 land for business & commercial 469,623 m2 Invest in InnovationArea land for residential 612,634 m2 land for urban 1,783,877 m2 other 62,258 m2Period 2007 ~ 2031 - Land for R&DTarget R&D facilities in advanced industries (IT, BT, GT, NT) - Land for International Businesssectors Financial services, legal, accounting, international conference facilities, hotels and other business support facilities
  24. 24. OverviewThe Magok District is Seoul’s only undeveloped region and measures over 3.3 million m2 in area. The Magok District is being developedinto the hub of knowledge-based industries by attracting research, production, education, training, support services, pilot productionand residential functions into one region to effectively nurture Seoul’s knowledge-based industries. The City of Seoul is expecting thatthe Magok District will serve a pivotal role in the growth of advanced knowledge-based industries such as BT, IT, GT and NT, and willheighten the global competitiveness of Seoul as a center of Northeast Asia for the 21st Century. Development Plan by Stage 1st Stage (2007 ~ 2015) 2nd Stage (2016 ~ 2023) 3rd Stage (2024 ~ 2030) IT, BT and GT-related advanced industries, Development of residential zones and Cope with additional demands of advanced R&D center, international business complex, handling the demands of advanced industries and secure available land after international exchange support center, public industries of the future completion of 1st and 2nd stages. support facilities, commercial functions for providing business support, development of a nearby residential complex Land Utilization Plan B General Area: 740,000 m2 Industrial International Target sectors: IT, BT, GT companies & research D C Business Complex Complex A institutes, universities, special graduate schools Infrastructure Residential Area: 320,000 m2 Zone International Zone Business Target sectors: Professional HR companies, medical institutes, accounting, legal, public relations, consulting, Complex B venture capital and other business support industries Residential Zone C Area: 610,000 m2 Infrastructure Zone D Area: 1.78 million m2 A General Industrial Complex
  25. 25. Project Details and expected benefits Metropolitan R&D Hub Thanks to its geographical location, the Magok District will connect Seoul’s industrial clusters such as Sangam DMC, Guro Geumcheon Digital Industrial Complex, Gangnam Venture Valley, the Yongsan International Business District and Gongneung-dong’s NIT Technopolis. Magok District will also serve as an R&D hub that connects western satellite cities of Paju, Pyeongtaek, Siheung, Ansan, Songdo, and the Cheongra District of Incheon with Seoul. Furthermore, the City of Seoul is promoting the construction of the Magok R&D Tower on a site measuring 26,400 m2 and a total floor area of 66,000 m2 in order to attract corporations to the Magok Industrial Complex and to nurture medium-sized and venture companies. By leasing R&D space to medium-size and research companies, and by operating joint research centers, information exchange centers and prototype exhibition centers, the Magok R&D Tower will serve as a strong base for the Magok Industrial Complex’s continuous growth. Development of a new city of the future Described as an energy-saving city of the future; a “green” city; a multidimensional, multipurpose building which efficiently uses underground space; a city of information exchanges; a high-tech city of technology convergence and a U-city that evolves with people, the urban development project of the Magok District will present a new model for the city of the future.Business OpportunitiesLand set aside for R&D purposes will be supplied at raw cost beginning in the second half of 2011. The Magok District will also offervarious tax exemptions including corporate tax, income tax, and registration-and-acquisition tax, to attract leading enterprises fromKorea and overseas. Invest in Innovation For inquiries, please contact _ Tel: 82-2-2171-2794~5 / E-mail: Magok District 26 • 27
  26. 26. T Se Gr P Re Pro Recreated as a theme park where dreams become reality Seoul Grand Park has long been loved by Seoul citizens as a place for rest and leisure. At present, the Park is being recreated as an eco-friendly theme park where advanced technologies and nature harmoniously co-exist to provide a better experience to Seoul citizens. By recreating the habitats of animals and plants from different climate zones, and by adding advanced recreational facilities such as rides, Seoul Grand Park will offer visitors an experience like never before. Through this extensive renovation, Seoul Grand Park will become a tourism center of the Northeast Asian corridor that sets itself apart from other world-leading theme parks such as Disneyland and Universal Studios.
  27. 27. Seoul Grand ParkLocation 159-1 Makgye-dong, Gwacheon, Gyeonggi ProvinceArea 9,163,900 m2Period ~ 2020 All companies interested in investing in theTarget sectors renovation project of Seoul Grand ParkProject execution Public-private partnership by governmentmethod notice Invest in Innovation
  28. 28. OverviewDespite its advantageous location near Seoul in Gwacheon, GyeonggiProvince, as well as proximity to an attractive market, as well as a favorablelocation, environment and transportation conditions, Seoul Grand Parkhas been losing its appeal due to outdated facilities. Through thisextensive renovation, Seoul Grand Park will be reborn as a resort completewith a world-class amusement and water park, and entertainment &retail facilities and hotels, thus allowing it to become the center oftourism in the region.Project Details and expected benefits Spectacular and Exciting Hybrid Theme Park Renovated under the theme "a harmonious mix of plants, animals and people," Seoul Grand Park is set to be renovated into an exciting and attractive space interconnected with attractions (rides), a zoo, and a botanical garden. A visitor’s experience at the hybrid theme park will also be complemented by virtual experiences in 4D and 5D theaters. [Separated Experience] [Integrated Experience] [Amusement Park] [Zoological Park] [Botanic Park] [Seoul Grand Park]
  29. 29. Entertainment & Retail At the entertainment & retail zone of Seoul Walk, which will be constructed at the entrance of Seoul Grand Park, citizens can enjoy shopping, dining, performances and parades combined with entertainment. Visitors can also enjoy taking a peaceful walk along the lake at Lake Park. These facilities will attract more guests to the shops, naturally resulting in higher sales. Creating a Harmonious Community with Nature The core principles of the Seoul Grand Park Renovation Project are fun and sustainability. The project will be executed with maximum use of eco-friendly technologies. Animals and plants will be protected in a natural eco-system tailored to a specific climate, while rides and convenience facilities will be installed without obstructing nature to create a harmonious living community of animals, plants and people.Business OpportunitiesThe City of Seoul will renovate Seoul Grand Park into a world-leading theme park to make it into a regional tourism center. Theproject will be executed as a public-private partnership in order to maximize the creativity and efficiency of the private sector. An Invest in Innovationofficial request for proposals will be announced in the second half of 2011. For inquiries, please contact _ Tel: 82-2-2115-7534~7 / E-mail: The Seoul Grand Park Renovation Project 30 • 31
  30. 30. Yon Inter Bu Dis The Birth of the City of the Future The gold crown of the Shilla Dynasty is renowned worldwide for its refined and elegant design. The beauty of the Shilla gold crown will exceed the boundaries of time and space as it is recreated at the center of Seoul as a part of the metropolis. The Yongsan International Business District will feature a magnificent skyline which resembles the Shilla gold crown as it is reborn as the center of economy and culture that drives a new lifestyle with its advanced international business, commercial, cultural, residential and multifunctional facilities.
  31. 31. Yongsan Invest in InnovationLocation Seobuicheon-dong, Hanganro, Yongsan-gu, SeoulArea 565,109 m2 (including the adjacent rail yard)Total floor area 3,340,000 m2Period 2007.8 ~ 2016.12 Grade A offices, shopping malls, hotels, recreationalTarget sectors facilities, department stores, designer boutiques, luxury apartments, convention centers, etc.
  32. 32. OverviewYongsan, which is a secondary center of Seoul that embracesdistricts including Myeong-dong, Euljiro and Yeouido, willbe connected to the Han River and developed into a largeinternational business district that represents Seoul. TheYongsan International Business District will be developedinto a large multipurpose complex nearly 6 times largerthan Roppongi Hills in Japan or Canary Wharf in England.With a total investment of 31 trillion won, the project isexpected to attract a floating population of 150 millionpeople, 360,000 new jobs, plus 67 trillion won in productionbenefits and added value.Project Details and expected benefits Harmony of Nature and Architecture In the international public bid for the Yongsan International Business District’s master plan held in April 2009, the “Archipelago21” design by globally renowned architect Daniel Libeskind, inspired by Dado Ocean, was selected as the winner. The Yongsan International Business District, which consists of international business, commercial, cultural, residential and multifunctional facilities, is made up of six “islands.” Each of these unique islands will be brought together to form a dynamic urban lifestyle. Beautiful and Dynamic Skyline The dynamic skyline created by over 20 buildings of different Category No. of floors No. of buildings Note heights from 40 to 100 stories surrounding the landmark tower, Total Over 100 67 which expresses the dynamic energy of Yin and Yang, symbolizes Floor space Under 40 floors 2 ~ 39 47 index: the shape of the Shilla gold crown, which is considered one of the average of 40 to 99 floors 40 ~ 76 19 most beautiful crowns in history. The skyline that resembles the 608% Over 100 floors 100 1 Shilla crown will form a harmonious relationship with the Han River and will be visible from anywhere in Seoul, making the Yongsan International Business District the new landmark of the city.
  33. 33. High-end Tourism District As the Han River Renaissance Project is expected to attract over 1.2 million international tourists every year, parks as well as international cargo and passenger ship terminals are expected to be constructed along the Han River. Furthermore, the KTX and Incheon International Airport Railroads will form a tourism network that connects Namsan and the Seoul Opera House.Business OpportunitiesYongsan International Business District is expected to be developed into a multipurpose complex that consists of a 485-meter tall Invest in Innovationlandmark tower, large shopping malls, hotels, department stores and cultural spaces. Participate in the project is available from2012 when construction begins by occupying or acquiring facilities. For inquiries, please contact _ Tel: 82-2-2171-2794~5 / E-mail: Yongsan International Business District 34 • 35
  34. 34. Invest in SuccessThe City of Seoul is preparing various benefits so that international investorsand companies can invest in Seoul flexibly and more conveniently. Thanks toSeoul’s strong business infrastructure and high growth potential, more thanhalf of the Fortune 500 companies and over 10,000 international companiesare carrying out their corporate activities in Seoul.
  35. 35. Foreign Direct Investment IncentivesForeign Direct Investment IncentivesForeign nationals are permitted to invest in every type of business with the exception of industries classified as natural monopoliesand those directly related to national security. The Korean government provides various benefits for foreign direct investment inaccordance with the Foreign Investment Promotion Act.Foreign Investment Promotion Act Safeguards for Foreign Investment Freedom of Foreign Investors Acquisition of Real Estate Overseas remittance by a foreign investor is guaranteed in A foreign national is permitted to invest in any of the All foreign nationals, including non-residents, may accordance with the introduction of technologies and 1,145 types of industries according to Korea’s standard acquire real estate in Korea freely. The land acquisition approved/reported details regarding the foreign investment. industrial categorization with the exception of process has been changed from an approval system A foreign investor or a foreign invested firm is guaranteed the industries specified by law. to a reporting system to make land acquisition more same treatment as that enjoyed by Korean citizens and firms, convenient. with the same tax exemptions and reductions applying to foreign investors and foreign-invested companies.Foreign Direct Investment Procedures Establishing a Corporation There are four ways for foreign nationals to advance into Korean industries, with different laws applying depending on each method. Foreign corporations cannot register a privately owned business in Korea. Procedures for Establishing a Foreign-invested Company Foreign investment procedures consist of the foreign investment notification, investment notification, remittance of investment funds, registration of incorporation & business, and registration of a foreign-invested company. Notifying a foreign investment ▶ Remittance of investment capital ▶ Incorporation registration ▶ Incorporation notification & business registration Paid-in capital transfer to corporate’s account ▶ FDI company registration Procedures applied to foreign nationals are basically the same as those applied to Koreans except for the two additional steps: foreign investment notification and registration of a foreign-invested company. Where a foreign investor registers a privately-owned business, ‘registration of incorporation’ is not required.
  36. 36. Foreign Investment Promotion Act and Incentives for Foreign Investment according to Seoul City OrdinancesAccording to related laws such as the Foreign Investment Promotion Act and Foreign Investment Ordinances of Seoul, the City is providingvarious incentives including tax support and cash grants for foreign-invested companies that contribute to advancements of industrial structure,subsidies for companies that contribute to creating jobs, and designating foreign investment zones for attracting large foreign investments.Tax Support Cash GrantsExemption and reduction of corporate, income, acquisition, registration and property taxes. · Article 14-2 of the Foreign Investment Promotion Act Basis · Article 14 of the Foreign Investment Support Ordinance · Article 9 of the Foreign Investment Promotion Act · Construction of a new factory or expansion of an existing factory with a Basis · Article 121-2 of the Special Tax Treatment Control Act foreign investment of over USD 10 million (companies involving advanced · Article 121-2-2 of the Special Tax Treatment Control Act technologies, parts & materials industry) Subject · Job creation (From 50 to 300) · Industries involving advanced technologies (software development, nano-based technologies, production of medical equipment, etc.) · Establishment of a new R&D facility or expansion of an existing R&D facility Subject with over 10 permanent research personnel · Independent foreign investment zones (over USD 30 million for manu- facturing, USD 20 million for tourism, over USD 2 million for R&D) · Land purchase expenses and rental support for construction of new factories (R&D facilities) · Corporate & income tax - 100% exemption for 5 years, 50% reduction for Details the following next 2 years · Support for construction expenses, capital goods, research equipment Details and infrastructure installation expenses · Acquisition, license, property tax - 100% exemption for 10 years, 50% reduction for the following next 5 years Support · Negotiated under 50% of total investment and reviewed by the Foreign Method Investment Committee · Foreign-invested company submits application to the Minister of Finance & EconomyApplication  Reviewed by the Foreign Investment Support Review Committee  Outcome * Support from the Small and Medium-sized Enterprise Fund of Seoul (Article 13 of the Foreign Investment Support Ordinance)Procedure notified to the applicant within 20 days  Notified to the Mayor of Seoul * National incentive support system to switch from tax support to cash grants starting in 2011. · Stanford Hotel within the DMC was designated as an independent foreign investment zone in May 2007, and approximately 9.4 billion won in taxes will be Examples exempted by 2018 (4.2 billion won in national tax, 5.2 billion won in local tax) · National tax exemption on foreign-invested companies that accompany Employment Subsidy and Educational & Training Subsidy advanced technologies within Seoul (five in 2008, two in 2009) · Article 14 of the Foreign Investment Promotion Act Basis · Article 15 and 16 of the Foreign Investment Support OrdinanceExemption of customs duties, individual consumption and value added tax Invest in Success · Companies that attracted foreign investment, foreign companies investing in · Article 121-3 of Special Tax Treatment Control Act ① (exemption of customs duties) Subject Seoul’s 8 new growth engine industries (finance, fashion design, tourism & Basis convention, digital contents, and biomedical) that hire Korean citizens · Article 116-5 of Enforcement Ordinance of Special Tax Treatment Control Act ① · Payment made using invested cash, capital goods purchased using payment Conditions · Over 30% foreign investment ratio, 10 or more new permanent jobs Subject methods in Korea, capital goods brought as the for investment (companies · 1 million KRW per new employee for up to 6 months (maximum of 200 with advanced technologies and those operating in foreign investment zones) Details million won per company)Application · 26 employment(education & training) subsidies totaling to 1.9 billion were · Submit exemption application to Director of Korean Customs Service Examples paid between 2005 and 2009Procedure Foreign Direct Investment Incentives | Foreign Investment Promotion Act and Incentives for Foreign Investment according to Seoul City Ordinances 38 • 39
  37. 37. Foreign Investment Zone Designation SubsidiesA program in which the region a foreign investor wishes to establish a new business in is designated as a foreign investment zone (FIZ) to attract largeforeign investments. Once designated as an FIZ, businesses within the FIZ are exempted from various taxes and burdens. · Manufacturing industry (manufacturing companies, industrial support service companies, businesses that accompany advanced technologies) - Over USD 30 million in foreign investments · Tourism (Tourist hotels, maritime tourism hotels, traditional Korean hotels, specialized recreational businesses, general recreational businesses, general recreational facilities, international conferencing facilities, youth training facilities) - Over USD 20 million in foreign investmentsSubjects of FIZ Designation · Logistics industry (Multi-purpose cargo terminals, shared collecting and shipment center development and operations companies, port facility operation companies, airport facility operation companies, SoC development companies) - Over USD 10 million in foreign investments · R&D (Construction of a new R&D facility or expansion of existing R&D facility) - Over USD 20 million in foreign investments - 10 permanent-position research manpower with Master’s degree or higher with at least 3 years of experience. · National Tax (Corporate/Income)  100% reduction for the first 5 years, 50% reduction for the following 2 years Incentives · Local Tax (Acquisition/Registration)  100% reduction for the first 5 years, 50% reduction for the following 5 years · Other  Traffic congestion costs waived during construction, reduction on rental fee of national territories and support for other infrastructuresEstablishment of New Serviced-type Foreign Investment Zone (Executed in Oct. 2010) Basis · Article 18-1-4 of the Foreign Investment Promotion Act Concept · Regions (or buildings) designated to be rented or sold to foreign-invested companies in service industries with high added value such as the finance, culture and tourism sectors. Subject · Yeouido SIFC(finance & Insurance), DMC(M&E, IT), etc Details · Subsidy on purchasing cost of land for rent and 50-100% reduction on rental fees when a foreign company in the service industry is relocated to the regionLighter Building-to-Land Ratio and Floor Space Index Support for Creating Attractive Investment ConditionsRestrictions within FIZ for Foreign Nationals · Article 19 of the Foreign Investment Support Ordinance and the Execution Basis · Act 10 of the Foreign Investment Support Ordinance Basis Regulations of Urban Planning Ordinance · Provide support within the budget to the party executing a business that · A company that establishes a new factory or business site using new foreign investment Concept creates favorable investment conditions for foreign nationals - Businesses accompanying advanced technologies, industrial support service companies and strategic industries with over USD 10 million in foreign investment · Parties executing towns for foreign natioanls and global village construction projects Subject - Businesses accompanying advanced technologies, industrial support service · Parties establishing infrastructure for improving the residential environment companies and strategic industries with over USD 5 million in foreign investment Subject for foreign nationals - Businesses with over USD 100 million in foreign investment · Parties establishing and operating facilities for improving investment conditions Reviewed and approved by the Urban Planning Committee of the City of Seoul for foreign nationals Details within the execution ordinance of the Act on Planning and Use of National Territory Details · Parts of the project budget or operating expenses Support · Establish and execute a support plan when necessary Method
  38. 38. Reduction of Rental Fees & Sales Cost of Public Properties · Article 13-1 of the Foreign Investment Promotion Act (Private Contract) Basis · Article 36-4 of the Public Property and Item Management Ordinance (Installation payments of sales cost with 4% annual interest) · Article 37 (Sale at raw cost) · Sale by private contract: Public property may be rented or sold to foreign companies through a private contract · Rental fee reduction on public properties ① Rental fee is over 1% of appraised asset value: When a foreign company uses a shared property for business ② 100% to 50% rental fee reduction when the following conditions are met: - Over USD 20 million in foreign investment, at least 300 employees, maximum amount exempted is adjusted by the amount of exports and parts purchased in Korea. - When a public property is used to operate an international school, the exemption will vary depending on the number of students. Details · Reduction on Purchase Cost of Public Property ① Sell at raw cost (land purchasing cost + investment and development expenses) - Property within a Foreign Investment Zone developed and managed by the city to attract large foreign investment projects - Property within the FIZ that was developed by the Mayor to attract large overseas investments ② Sales cost can be paid in installments over a 20-year period with a low annual interest rate of 4%. - When a foreign invested company uses a public property for business · Rental fee exempted when leasing public properties such as the DMC High-tech Industry Center, and SIFC (Yeouido) Examples · Magok District will be provided at lower raw costs (land purchasing cost + investment development expenses) compared to market prices when sold to a foreign company.Comparison of Investment Promotion Policies in Major Asian Countries Investment Promotion Policies Seoul Beijing Hong Kong Treatment of local and · Additional support for foreign companies · Promoting equal treatment · Equal treatment foreign companies · Tax support · Subsidies Primary incentives · No additional incentives (Switch to cash grants starting in 2011) · Tax support (promoting equal treatment) · Attract regional headquarters of multi- · Implementation of advanced technologies national corporations Purpose of providing incentives · Advancement of industry support services · No additional incentives industry · Advancement of high-tech industries and services industries · Tax support · Provide subsidies for regional headquarters Types of incentives · Land support of multi-national corporations · No additional incentives Invest in Success · Cash grants · Tax support (promoting equal treatment)* Source: Survey by KOTRA’s Korea Business Centers (Sep. 2009)* China is considering applying equal incentives and subsidies to local and foreign companies gradually starting from 2010. Foreign Investment Promotion Act and Incentives for Foreign Investments according to Ordinances of Seoul 40 • 41
  39. 39. Se