Daegu-Gyeongbuk Free Economic Zone Authority F5~6, Daegu Textile Complex, 227, Palgong-ro, Dong-gu, Daegu www.dgfez.go.kr/eng E-mail. invest@korea.kr Tel. +82-53-550-1500

DGFEZ_Korea's Winning FEZDGFEZ has been recognized as a world-class free economic zone committed to offering optimal business location

based on profitable opportunities, talented and plentiful manpower and state of the art infrastructure.

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Flight Hours to Major Regional Centers

· Beijing (1.5 hrs)

· Vladivostok (1.5 hrs)

· Shanghai (2 hrs)

· Tokyo (2 hrs)

· Hong Kong (3.5 hrs)

· Manila (4 hrs)

· Singapore (6.5 hrs)

Major Ports within 100km

· Busan

· Ulsan

· Okpo

· Pohang

· Yeongilman

· Masan

· Jinhae

Pave your way by choosing the optimal location for your business

Daegu-Gyeongbuk

Surrounded by North-East Asia's 1.5 billion people, Daegu-Gyeongbuk is the birthplace for global

companies such as Samsung and Posco. The area has a population of 5.2 million and boasts an

energetic business environment, prosperous lifestyle, and quality education.

Features · The world's fastest internet, convenient lifestyle, and advanced healthcare

· With 47 FTAs and ranked the 3rd in ease of trading across borders, Korea is a world class trading economy

· Daegu-Gyeongbuk boasts access to both domestic and international markets via 7 seaports in the surrounding

area including the number 1 and 2 seaports in Korea, around 100 trains a day to Seoul and Busan, 2 international

airports, and 7 expressways

· Highly skilled labor supplied by some 50 universities and colleges with low employee turnover rate (2.04%)

· DGFEZ will support the administrative process, provide incentives, and deliver one to one customized support to

help your company establish and operate efficiently

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Location | Daegu-Gyeongbuk, South Korea

Total Area | 19.72km2

Available for | Manufacturing, R&D, Logistics

Target Industries | Transportation Components (Automotive, Shipbuilding, Aviation),

IT Convergence (Software, Display, Mobile, Robotics),

Medical (Healthcare, Medical devices, Pharmaceutical)

DGFEZ Daegu-Gyeongbuk Free Economic Zone

The Daegu-Gyeongbuk Free Economic Zone Authority was created by the Korean Government in 2008 to offer

customized facilities and space for Korean and foreign companies operating in Korea and the Asia-Pacific market.

DGFEZ also provides financial incentives and business-friendly government regulations for global companies.

Daegu-Gyeongbuk Free Economic Zone has 8 sites in Daegu Metropolitan City and Gyeongbuk Province. With a

focus on industries such as IT Convergence, Transportation Components, and Healthcare, each site is equipped

with manufacturing land, R&D facilities, commercial land, and residential housing.

IncentivesIncentives include tax exemptions, cash grants, reduction of tariffs and regulations.

Tax Reduction & Exemption

Requirements

- Manufacturing Industry : More than US $30 million of FDI- R&D Facility : More than US $2 million of FDI

- Manufacturing Industry : More than US $10 million of FDI- R&D Facility : More than US $1 million of FDI

Corporate & Earned Income tax

100% for 5 years, 50% for 2 years thereafter

100% for 3 years, 50% for 2 years thereafter

Customs Duty

100% for 5 years(imported capital goods)

Acquisition & Property tax

100% for up to 15 years

Financial Support

Category

Investment Subsidy

FacilitySubsidy

EmploymentSubsidy

TrainingSubsidy

OperatingExpenses

ManufacturingIndustry

R&D Facility

Requirements

- Over US $30 million of FDI or more than 300 regular employees- Over US $10 million of FDI and one of three categories below

- High technology industry- Certified parts & material manufacturing business- Certified advanced technology & products business

- Hiring more than 20 new Korean nationals

- Hiring and training more than 20 new Korean nationals

- More than US $5 million of FDI and high technology industry - More than 10 researchers with regular employment

Incentives

Up to 20% of FDI

Special lease rate(1% of land price)

Up to KRW 1 million per employee exceeding 20 persons for 6 months

Up to KRW 1 million per employee exceeding 20 persons for 6 months

Varies by case

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Target Sector | Automotive Parts, Electronics Parts, Machines and Machinery, Mechatronics

Size | 7.26km2

Location | Hyunpung-myeon and Yuga-myeon, Dalseong-gun, Daegu

Facilities | Proving Ground for Intelligent Vehicle & Transportation, Korea Institute of Machinery and Materials (KIMM),

Electronics and Telecommunications Research Institute (ETRI), Korean Institute of Industrial Technology

(KITECH), Daegu-Gyeongbuk Institute of Science and Technology (DGIST), Daegu National Science

Museum (Scientry)

Key Tenants | 84 companies including Hyundai-IHL, SMEC CO., Ltd., Hyundai Cummins, Hycon Korea, Assab Steel Korea,

Korea Nakamura-Tome Company, UGint

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Target Sector | Fashion, Textile

Size | 1.18km2

Location | Bongmu-dong, Dong-gu, Daegu

Facilities | Daegu Textile Complex, Korea Research Institute for Fashion Industry (KRIFI), College of Korea Textile

& Fashion Polytechnic, Daegu International School (DIS), Lotte Outlets

Key Tenants | 36 companies including CMA Global and ing A

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Target Sector | Automotive Components, Mechatronics, Parts and MaterialsSize | 1.46km2

Location | Chaesin-dong, Bonchon-dong, and Geumho-eup, Yeongcheon City, Gyeongsangbuk-doFacilities | Manufacturing Space (550m from Gyeongbu Expressway, Korea's main highway), Gyeongbuk Hybrid

Technology Institute (GHTI)Key Tenants | 53 companies including DSSK, PNDT, Hwajin & DIC, LFJ Korea, BPH Korea, SEWON

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Target Sector | Healthcare (international hospital, specialty hospital, medical R&D center), Medical Tourism, InformationTechnology and Software, Educational Institute

Size | 1.23km2

Location | Daeheung-dong, Suseong-gu, DaeguFacilities | Software Convergence Technology Center, Daegu Art Museum, Daegu Stadium, Daegu Baseball Stadium

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Target Sector | Construction Equipments, Automotive Parts, Shipbuilding Materials, Advanced Medical Equipments, New Medical Materials

Size | 3.78km2

Location | Hayang-eup and Wachon-myeon, Gyeongsan City, Gyeongsangbuk-doFacilities | Next Generation Construction Equipments Design Support Center,

Next Generation Construction Equipments Convergence Center,High-Tech Medical Convergence Textile Center

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Target Sector | Aerospace (MRO), Intelligent Vehicles, Medical Molding Size | 2.30km2

Location | Jungang-dong and Hwasan-myeon, Yeongcheon City, Gyeongsangbuk-do Facilities | Airforce Logistics Command (AFLC), Avionics & System Technology Center

(ASTEC), Gyeongbuk Research Institute of Vehicle Embedded Technology (GIVET), Bio Medical Center (KITECH)

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Target Sector | Medical Devices, New Drugs, Healthcare R&D

Size | 1.05km2

Location | Sinseo-dong, Dong-gu, Daegu

Facilities | Daegu Gyeongbuk Medical Innovation Foundation (DGMIF), Korea Brain Research Institute (KBRI),

Korea Institute of Oriental Medicine, 3D Convergence Technology Center

Key Tenants | 59 companies including GE Healthcare, Medi-sensor, Daewoo Pharm18 19

Target Sector | Biotechnology, Green Energy, Parts and Materials, R&D centersSize | 1.46km2

Location | Heunghae-eup, Buk-gu, Pohang City, Gyeongsangbuk-doFacilities | POSCO, POSCO Power, Yeongilman Port, High-tech R&D foundation POSTECH, Max-Plank Institute,

Pohang Accelerator laboratory

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Brett Kimber (President, Linde Korea) We've invested in the Gyeongbuk province and will continue to invest there and in Korea, and the industries specifically around the IT

and the semi-conductors and the LCD have driven our growth business, and so as those industries grow we'll continue to grow with

them.

Harry Rudolph (Executive Vice President, Delphi Korea) For thirty years we've had excellent access to all of our customers. With our products we have to deliver just in time, at least to the

Korean customers, so we have to have parts at our customer dock within four hours, and so all of our customers are located within

four hours. And then, usually by truck, and then we also ship to overseas customers and we're within ninety minutes of the Busan

port, so we've got great access to global shipping as well.

Shinji TATSUKAWA (Vice President & Plant Manager, Daicel Safety Systems Korea)We deliver our products directly to Hyundai Mobis, our biggest customer, using the highway nearby. For international travel and

logistics we use Busan port and Gimhae International Airport that are in close proximity. DGFEZ site is ideal for our logistics.

Our employees are very enthusiastic. They are very passionate about manufacturing work, and they have ambition. Their will to learn

based on their ambition corresponds with our aim to be a global company. Next is language proficiency. Nearly every employee can

speak English, and there are many who can also speak Japanese. We believe that we have acquired talented workers.

Yukio Hamano (Executive Director, Korea Nakamura Tome CO., LTD.)We asked DGFEZ to provide support including our employees' lodging and business partner matchmaking. With the help of DGFEZ,

today's KNT exists.

Moshe Sharon (Former President, TaeguTec) The quality of human resources in Daegu is the first level, the highest level. The background of it is the abundance of universities

existing in Daegu and institutions existing in Daegu. Teaching and training scientists and engineers into the tens of thousands every

year. And this is actually the group of people which are candidates to be recruited by TaeguTec along the years.

EndorsementsMore than 500 foreign companies have invested USD 5.3 billion in Daegu-Gyeongbuk to partnerwith Korea's leading companies and deliver value to Korea's 50 million consumers with highpurchasing power. These companies also access North East Asia's 1.5 billion consumers.

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Excellent R&D infrastructure

for your business

R&D Facilities

· Asia Pacific Center for Theoretical Physics

· Korea Multi-Purpose Accelerator Complex

· Max Planck Institutes in POSTECH

· National Institute for Nanomaterials Technology

· Pohang Accelerator Laboratory

Major Local Tertiary Institutions

· Daegu-Gyeongbuk Institute of Science and Technology

· Daegu University

· Deagu Haany University

· Keimyung University

· Korea Polytechnics

· Kyungpook National University

· POSTECH

· Yeungnam University

Machinery, Parts & MaterialsMachinery, Parts and Materials

· Daegu Mechatronics & Materials Institute

· Gyeongbuk Hybrid Technology Institute

· Gyeongbuk Institute of Convergence Industry Technology

· Korea Institute of Machinery & Materials

Information and Technology

· Daegu Digital Industry Promotion Agency

· Dassault Systemes Daegu R&D center

· Electronics and Telecommunications Research Institute

· Gumi Electronics & Information Technology Research Institute

· Korea Institute of Industrial Technology

· Mobile Convergence Technology Center

Healthcare

· Daegu Gyeongbuk Medical Innovation Foundation

· Gyeongbuk Institute for Bio Industry

· Institute for Korea Traditional Medical Industry

· Korea Brain Research Institute

· POSTECH Biotech Center

Textile and Fashion

· DYETEC Institute

· Gyeongbuk Natural Color Industry Institute

· Korea Research Institute for Fashion Industry

· Korea Textile Development Institute

· Korea Textile Machinery Research Institute

Automotive

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· Gyeongbuk Research Institute of Vehicle Embedded Technology

· Gyeongbuk Institute for Advancement of Eco-friendly

Auto Parts Technology

· Korea Intelligent Automotive Parts Promotion Institute

· Proving Ground for Intelligent Vehicle & Transportation

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EnjoySophisticated and diverse facilities, led by fine dining, value-priced shopping

centers, modern sports facilities, and unique cultural attractions

LearnDaegu International School, one of the top international schools in Korea,

providing AP curriculum for expat families in the region

TravelKorea's cultural, historical landmarks surrounded by beautiful nature in all

seasons - Gyeongju (Korea's ancient capital city) and Andong (Korea's center

of Confucianism)

LiveOne of the Korea's largest, well-serviced metropolitan regions. A convenient,

safe and pleasant area to live with an outstanding quality of life

Living Environment

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