Promising Investment Locations
Special Opportunity Development Zone
Relevant regulations
Special tax support for opportunity development zones
| Category | Support Requirements | Support Details | ||
|---|---|---|---|---|
| National Tax | Local Taxes | |||
| Provincial Taxes (Acquisition Tax) |
City/County Taxes (Property Tax) |
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| Startup |
- Target Industries Manufacturing Manufacturing, waste collection, transportation, treatment, and recycling, information and communication, electricity production using new and renewable energy, research and development, performance facility operation, hotel, specialized and comprehensive leisure, tourist cruise, international conference facilities, comprehensive amusement facilities, tourist restaurant, educational institution, elderly welfare facilities, etc. (Enforcement Decree of the Restriction of Special Taxation Act, Article 116-36)- Startup and New Expansion Period Until December 31, 2026 (excluding cases where an existing business relocates) |
Corporate Tax or Income Tax Eligible for Reduction :Full amount of the tax eligible for reduction (5 years) + 50% of the tax eligible for reduction (2 years) Reduction Limit : During the reduction period, 50% of the total investment in business assets as defined by the Ministry of Economy and Finance + 15 million KRW per regular employee at the eligible business site (20 million KRW per regular young employee and regular employees in service industries defined by presidential decree) (Restriction of Special Taxation Act Article 121-33) |
Acquisition Tax 50% reduction for eligible businesses + up to an additional 50% reduction (by ordinance)Property Tax Full amount of the tax reduction (5 years) + up to 50% of the tax reduction amount (extended for 5 years, ordinance) (Article 80-2 of the Restriction of Special Local Taxation Act) |
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| Factory Innovation |
Acquisition Tax 50% tax reduction of the tax reduction amount + up to an additional 25% reduction (ordinance)Property Tax 75% reduction of the tax eligible for reduction (5 years) (Local Tax Special Cases Act Article 80-2) |
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| Relocating Companies |
- Eligibility Domestic companies that have continuously operated for at least 3 years (2 years for small and medium-sized enterprises) in the metropolitan area- Period for Transferring Previous Business-use Real Estate Until December 31, 2026- Eligible Real Estate The land and buildings of the company's headquarters, factory, company-affiliated research institute, and data center |
Capital Gains Tax The amount equivalent to the real estate transfer gain until the year in which the new business-use real estate is disposed of (Restriction of Special Taxation Act Article 121-34)Deduction from Taxable Amount of Inheritance Tax 'Restriction on Business Type Change' and 'Obligation for the Heir to Serve as CEO' abolished (Inheritance Tax and Gift Tax Act Article 18-2, Act Enforcement Decree Article 15) |
Acquisition Tax 50% tax reduction of the tax reduction amount + up to an additional 50% reduction (ordinance)Property Tax Full amount of the tax reduction (5 years) + up to 50% of the tax reduction amount (extended for 5 years, ordinance) (Article 80-2 of the Restriction of Special Local Taxation Act) |
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