invest seoul
TRANSCRIPT
ContentsSeoul
Invest in the Future
Invest in InnovationDigital Media City
Yeouido International Financial District
Magok District
The Seoul Grand Park Renovation Project
Yongsan International Business District
Invest in Success
02
04
1416
20
24
28
32
36
Se
16th in 2010 Ease of DoingBusiness Index
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).
10th in the 2010 Global City Index
The U.S.-based global management consulting
firm A.T. Kearney ranked Seoul as the world’s
10th most globalized city in its 2010 Global
City Index which analyzed business activity,
human capital, information exchange, cultural
experience and political engagement in 65
cities around the world.
9th in 2010 Global City Competitiveness Report
According to the 2010 Global City Report by the Chinese Academy of
Social Sciences which conducts a comprehensive evaluation of a city’s
workforce; corporate, living and business environments; creativity,
innovation, and social environment; and industrial competitiveness of
each sector, Seoul was ranked as the 3rd most competitive city in Asia
and 9th in the world out of 500 cities.
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 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
Seoul 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 scenic
Han River and Namsan. In terms of location, economic scale, business and living
standards and growth potential, Seoul boasts competitive advantages over
other Northeast Asian cities. This urban competitiveness is the reason why
global investors are taking notice of Seoul.
Invest in the Future
Korea SeoulPopulation(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
Key industries Machinery, automobiles, steel, shipping, construction, electronics,semiconductor, petrochemical and telecommunication
* as of January, 2011
Seoul at a Glance
The 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 the
future. Korea demonstrated her potential by becoming the first OECD member country to overcome the global financial crisis in 2008
and successfully hosting the G20 Summit in 2010. Based on Korea’s favorable geographical location, the country is serving as an
outpost for entry into the Asian market, which possesses limitless growth potential. As the capital of Korea, Seoul is gaining global
attention as a key city propelling the growth of the Northeast Asia economy.
A bridge between Northeast Asia and the world
Located between China and Japan, Seoul offers easy and convenient access to the world’s
leading 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 of
over 1 million.
Healthy real economy and domestic market
Amid projections by major international organizations that the Northeast Asian economy will grow to become equal in size to those of the EU and NAFTA
by 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 was
ranked 7th in terms of exports, 9th in population among OECD members and 11th in the world in GDP.
FTA Status
Seoul is revamping herself as a market of major importance where
technologies and services engage in limitless competition based on
Korea’s aggressive and strategic free trade agreements.
Attractive business environment
1~2hours2~3hours3~4hours
4hours~
Attractive business environment 06 • 07
Investin the Future
Advanced transportation infrastructure Seoul is serviced by a very convenient mass transport system for business. Comprising
of Incheon International Airport, named the world’s best airport; Korea Train
Express (KTX), the high-speed railway connecting Seoul to the entire country
within three hours; an extensive metro subway system with nine lines and bus-only
lanes for a congestion-free commute, Korea’s advanced transport system is being
benchmarked by many foreign governments.
State-of-the-art airport connecting Korea with the world
Travel between Incheon International Airport and downtown Seoul became significantly more
convenient with the opening of Incheon International Airport Railroad (travel time: 42 minutes
from the airport to Seoul Station). Since 2005, Incheon International Airport has been named
the 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-minute
drive from downtown Seoul, is gaining in popularity as a short-distance business airport with
superior urban accessibility and short waiting times at immigration. Currently, the airport provides
a total of 336 flights on four international routes, connecting Seoul to Haneda (Tokyo), Nagoya
and Osaka (Kansai) and Hongqiao (Shanghai), while plans are underway to add more international
service in the near future.
Incheon Airport compared to Major Airports in Asia, 2009
* Source: Seoul Finacial Forum, 2010
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%
World leading IT infrastructureKorea is an IT powerhouse where foreign investors show the highest level of satisfaction in the country’s information and communication
technology services. In addition to the highest broadband Internet penetration rate among OECD nations, Korea leads the world in
broadband Internet quality for the second year in a row (2010 Oxford University survey results).
No.1 in Global E-Government Survey
Seoul boasts the best e-government in the world where administrative systems are smoothly integrated using information technology. Seoul claimed the
No.1 spot in the Rutgers Global E-Governance Survey four consecutive times. The survey is sponsored by the United Nations Department of Economic and
Social Affairs and the American Society for Public Administration and co-sponsored by E-Governance Institute of Rutgers University and Sungkyunkwan
University’s Global E-Policy and E-Government Institute.
Evaluation of e-government, the world’s 100 cities
Korea’s highly competitive IT industry
* Source: “A comparison of the IT Industry in G20 nations” report by the National IT Industry Promotion Agency, 2011
Ranking(2009) City(Country) Score
(2009)Ranking
2003 2005 2007 20091 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 8
_in the ICT Development Index (ICT- IDI)
by International Telecommunication
Union (ITU)
No. 1 in Digital Rankings by the Economist Intelligence
Unit (EIU), a research and advisory firm under
the United Kingdom’s Economist Group
No. 4 _in the Network Readiness Index
(NRI) by the World Economic
Forum (WEF)
No. 5
Attractive business environment 08 • 09
Investin the Future
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 automotive
industries. Major universities in Seoul offer English-language MBA courses and promote exchange programs with overseas universities
to nurture a highly skilled workforce that will promote Seoul’s continued growth.
Abundant talent pool
Currently, Seoul is home to a total of 400 institutions of higher learning including junior colleges, universities and graduate schools, all of which foster
talented 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 in
Seoul 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 devoted
researchers 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
* Source: Survey by KOTRA’s Korea Business Center, 2009
Seoul Beijing Hong Kong572,000 persons 210,000 persons 43,000 persons
76 per 10,000 people 121 per 10,000 people 62 per 10,000 people
Exceptional living environment
Befitting 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 better
infrastructure in regard to housing, education and medical services.
Expanding residential facilities for foreign residents
Seoul 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
Exceptional living environment 10 • 11
Investin the Future
Active support for the construction of international schools
Currently, there are 21 international schools in Seoul with an additional two slated to open in 2012 and 2013, respectively. Dulwich College, one of Britain’s
most prominent schools opened a local branch in September 2010 and the New York-based private academy, Dwight School, is to follow suit in September
2012.
Building a medical center exclusively for foreign nationals
Fourteen medical centers for foreigners are in operation at general hospitals in Seoul. Interpretation is available 24 hours a day to ensure non-Korean
speaking nationals receive accurate medical services at any location and at any time.
Yongsan International School(Opened in Aug. 2006)
DMC Japanese School(Opened in Sep. 2010)
Banpo UK “Dulwich College Seoul”(Opened in Sep. 2010)
DMC USA “Dwight School”(to be open in 2012)
Comprehensive Multilingual Counseling ServiceAvailable 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 areaswhich 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
Seoul Global Center a one-stop administrative services for foreign residents of Seoul
As part of an effort to improve living conditions for foreigners, Seoul Metropolitan Government launched the Seoul Global Center in 2008, offering comprehensive
and 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 Global
Village Centers conveniently located at seven foreign resident communities across the city.
Location_3F, Korea Press Center, 124 Sejong-daero, Jung-gu, SeoulTel_02-2075-4130~40 [email protected] Webcite_http://global.seoul.go.kr
Seoul Global Center | Urban competitiveness of Seoul from foreigners’ perspective 12 • 13
Investin the Future
The urban competitiveness of Seoul froma 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
Livingenvironment
Personal attachmentto Seoul
Business environment
Seoul is developing diverse policies and expanding support to develop herself
into a first rate business city and emerge as the preferred choice of investors.
Leveraging high-caliber human resources and Korea’s leading edge in information
communication technology, Seoul is pursuing groundbreaking projects such
as the DMC, Yeouido International Finance Center, Magok District, and Seoul
Grand Park to drive future growth.
Digital Media City
Yeouido International Financial District
Magok District
The Seoul Grand Park Renovation Project
Yongsan International Business District
Invest in Innovation
Di Me CiThose 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.
Location Sangam New Millennium City Sangam-dong, Mapo-gu, Seoul
Area 569,925 m2
Period 2002 ~ 2014
Targetsectors
Media and Entertainment-related Industries(Television, film, animation, games, music, digital education)Software and IT-related services
Type of business Company
Games Korea Game Developers’ Association, Korea Games Society, NeoWiz E&C, Dongyang Online,Gravity, E-Mir Entertainment, Game Incubating Center, and Geo Interactive, etc.
Broadcasting CJ Media, CJ TVN, KBS Media and KBS I, etc.
Imaging CJ Entertainment, KBS Media and Vietnam Multimedia Corp. Korea, etc.
Film MnFC, Korean Film Council, Visual Story Factory and Cheongeoram, etc.
Internet Korea.com Communications and Nemo Communications, etc.
Communications Pantech, LG U+ and Gel Line, etc.
IT Korea Honeywell, Woori Technologies, LG CNS and Korea Electronics Technology Institute, etc.
BT Bionea, I-gene, Environment Bio, Advanced Bio Technology and Ecowell, etc.
Type of business Company
HW Fuji Zerox Asia Pacific, PTI Ltd., SRC, JOOYONTECH Co.,Ltd., etc.
SW Hyundai Card, Daesung Holdings, E-Sum Tech, Human Lab, HK Car, Site On,Access Seoul, and DS Ivy, etc.
Education and Research Daesung Holdings Education Contents, Mentors Capital co.,Ltd., etc.
M&E OtherKorea Creative Contents Agency, Korea Federation of Copyright Communications,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.
Other Korea Trump GmbH, EBM Papst Korea, Multivak Korea, Renew System, Daesung GlobalNetwork, Korea Electronics Association, etc.
DMC
InvestinInnovation
List of Tenant Businesses(Attracted business types 293, as of February, 2011)
Overview
DMC was developed as part of the Sangam New Millennium City development project
aimed 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. The
objective is to create a world leading digital media and entertainment cluster fusing
environment 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)
Recommendedfunction area
Hi-techfacility
B1 7,140 800 60 61.5
B4-2 2,055 600 60 52.0
Generalfunctionarea
Commercialuse
B3 7,209 800 60 68.0
B6-1 5,381 400 60 80.0
I3 6,166 600 60 100.0
I4 6,324 600 60 100.0
I5 8,203 600 60 100.0
List of Tenant Businesses(Attracted business types 293, as of February, 2011)
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.
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.
Facility plans per floor
Floor Facility Gross floor areaTransmission tower
128~133F Observation deck 3,519.29m2
103~127F Luxury hotel 55,707.22m2
84~102F Family hotel 60,280.71m2
50~83F Co-op 89,326.70m2
9~49F Offices, Community facilities 131,974.76m2
8~9F Convention center, Cinema 23,960.59m2
B2~9F Department store, Shopping mall 125,938.49m2
B1F, 1F Aquarium, Concert hall, Corporate PR center 16,935.14m2
Total floor area 507,642.9m2
Business entity Seoul Lite Tower Co., Ltd.
Period 2009.3 ~ 2015
Location F1, F2 sites in the DMC Complex
Scale Height: 640m (133 floors above ground, 9 floors below ground) - No. 2 in the world Total floor area: 724,675m² - No. 1 in the world
Facilities Complex business center, office, cultural facility, hotel, residence
Building density Floor space index: 1,000%, Building coverage ratio : 60%
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 Opportunities
At present, seven lots in the High-Tech Function Area and Commercial Function Area are available for purchase. The supply notice for these
lots is available on the DMC Web site (http://dmc.seoul.go.kr) and in various media outlets. Meanwhile, information on renting space at the
DMC 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
· 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.
Digital Media City 18 • 19
InvestinInnovation
Item Incentives
Expanded incentiveswhen purchasing land
- Allows installment payments for a period of up to 20 years - Applies a 4-percent annual interest rate on installment payments- Applies a lower designated use ratio than for domestic firms (60%)
Tax breaks - Eligible businesses: Foreign investors and foreign investment zone engaging in high-tech business and industry-supporting service business- 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
For more information, please visit the DMC Web site (http://dmc.seoul.go.kr).
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.
Yeouido
Location Yeouido-dong, Yeongdeungpo-gu, Seoul
Area 3,976,788 m2
Targetsectors
Financial, consulting, legal and accounting firms, regional headquarters of multinational corporations
InvestinInnovation
Overview
In 2009, the Korean government designated Yeouido, Seoul as an international financial center in an effort to strengthen the competitiveness
of the financial industry and to promote advancements in the market. Within Yeouido is the International Financial District, measuring 3,976,788 m2
in area, which will be composed of a central business district at its center, a business support district nearby, and a residential district also
located 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.
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.
Business Opportunities
Financial companies, regional headquarters of multinational corporations, consulting firms and legal firms can move into the IFC
Seoul Office Tower, which is due to be completed in 2012.
For inquiries, please contact _ Tel: 82-2-2171-2794~5 / E-mail: [email protected]
Yeouido International Financial District 22 • 23
Address 23, 23-1 Yeouido-dong, Yeongdeungpo-gu, Seoul
Area 33,058 m2 (gross floor area)
Period 2006 ~ 2012
Facilities
One IFC (32 floors, 7 underground floors)Two IFC (29 floors, 7 underground floors)Three IF (55 floors, 7 underground floors)IFC Mall (3 underground floors)Hotel (38 floors, 7 underground floors, the Conrad Hilton Hotel)
Targetsectors
Financial, consulting, legal and accounting firms, regional headquarters of multinational corporations
InvestinInnovation
Ma DisCreating 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 nation's 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.
Location Magok-dong and Gayang-dong, Seoul
Area
Site 3,665,336 m2
- land for R&D 736,944 m2
land for business & commercial 469,623 m2
land for residential 612,634 m2
land for urban 1,783,877 m2
other 62,258 m2
Period 2007 ~ 2031
Targetsectors
- Land for R&DR&D facilities in advanced industries (IT, BT, GT, NT)
- Land for International BusinessFinancial services, legal, accounting, international conference facilities, hotels and other business support facilities
Magok
InvestinInnovation
Overview
The Magok District is Seoul’s only undeveloped region and measures over 3.3 million m2 in area. The Magok District is being developed
into the hub of knowledge-based industries by attracting research, production, education, training, support services, pilot production
and residential functions into one region to effectively nurture Seoul’s knowledge-based industries. The City of Seoul is expecting that
the Magok District will serve a pivotal role in the growth of advanced knowledge-based industries such as BT, IT, GT and NT, and will
heighten the global competitiveness of Seoul as a center of Northeast Asia for the 21st Century.
Development Plan by Stage
Land Utilization Plan
1st Stage (2007 ~ 2015) 2nd Stage (2016 ~ 2023) 3rd Stage (2024 ~ 2030)
IT, BT and GT-related advanced industries,R&D center, international business complex,international exchange support center, publicsupport facilities, commercial functions forproviding business support, development ofa nearby residential complex
Development of residential zones andhandling the demands of advanced industries of the future
Cope with additional demands of advancedindustries and secure available land aftercompletion of 1st and 2nd stages.
GeneralIndustrialComplex A
Area: 740,000 m2
Target sectors: IT, BT, GT companies & research institutes, universities, special graduate schools
InternationalBusinessComplex B
Area: 320,000 m2
Target sectors: Professional HR companies, medical institutes, accounting, legal, public relations, consulting,venture capital and other business support industries
Residential Zone C Area: 610,000 m2
Infrastructure Zone D Area: 1.78 million m2
General IndustrialComplex
InternationalBusiness Complex
ResidentialZone
InfrastructureZone
B
D
A
C
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 Opportunities
Land set aside for R&D purposes will be supplied at raw cost beginning in the second half of 2011. The Magok District will also offer
various tax exemptions including corporate tax, income tax, and registration-and-acquisition tax, to attract leading enterprises from
Korea and overseas.
Magok District 26 • 27
InvestinInnovation
For inquiries, please contact _ Tel: 82-2-2171-2794~5 / E-mail: [email protected]
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.
Seoul Grand Park
Location 159-1 Makgye-dong, Gwacheon, Gyeonggi Province
Area 9,163,900 m2
Period ~ 2020
Target sectors All companies interested in investing in therenovation project of Seoul Grand Park
Project executionmethod
Public-private partnership by governmentnotice
InvestinInnovation
Overview
Despite its advantageous location near Seoul in Gwacheon, Gyeonggi
Province, as well as proximity to an attractive market, as well as a favorable
location, environment and transportation conditions, Seoul Grand Park
has been losing its appeal due to outdated facilities. Through this
extensive renovation, Seoul Grand Park will be reborn as a resort complete
with a world-class amusement and water park, and entertainment &
retail facilities and hotels, thus allowing it to become the center of
tourism 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]
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 Opportunities
The City of Seoul will renovate Seoul Grand Park into a world-leading theme park to make it into a regional tourism center. The
project will be executed as a public-private partnership in order to maximize the creativity and efficiency of the private sector. An
official request for proposals will be announced in the second half of 2011.
The Seoul Grand Park Renovation Project 30 • 31
InvestinInnovation
For inquiries, please contact _ Tel: 82-2-2115-7534~7 / E-mail: [email protected]
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.
Yongsan
InvestinInnovation
Location Seobuicheon-dong, Hanganro, Yongsan-gu, Seoul
Area 565,109 m2 (including the adjacent rail yard)
Total floor area 3,340,000 m2
Period 2007.8 ~ 2016.12
Target sectorsGrade A offices, shopping malls, hotels, recreationalfacilities, department stores, designer boutiques,luxury apartments, convention centers, etc.
Overview
Yongsan, which is a secondary center of Seoul that embraces
districts including Myeong-dong, Euljiro and Yeouido, will
be connected to the Han River and developed into a large
international business district that represents Seoul. The
Yongsan International Business District will be developed
into a large multipurpose complex nearly 6 times larger
than Roppongi Hills in Japan or Canary Wharf in England.
With a total investment of 31 trillion won, the project is
expected to attract a floating population of 150 million
people, 360,000 new jobs, plus 67 trillion won in production
benefits 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
heights from 40 to 100 stories surrounding the landmark tower,
which expresses the dynamic energy of Yin and Yang, symbolizes
the shape of the Shilla gold crown, which is considered one of the
most beautiful crowns in history. The skyline that resembles the
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.
Category No. of floors No. of buildings Note
Total Over 100 67Floor space
index: average of
608%
Under 40 floors 2 ~ 39 47
40 to 99 floors 40 ~ 76 19
Over 100 floors 100 1
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 Opportunities
Yongsan International Business District is expected to be developed into a multipurpose complex that consists of a 485-meter tall
landmark tower, large shopping malls, hotels, department stores and cultural spaces. Participate in the project is available from
2012 when construction begins by occupying or acquiring facilities.
Yongsan International Business District 34 • 35
InvestinInnovation
For inquiries, please contact _ Tel: 82-2-2171-2794~5 / E-mail: [email protected]
The City of Seoul is preparing various benefits so that international investors
and companies can invest in Seoul flexibly and more conveniently. Thanks to
Seoul’s strong business infrastructure and high growth potential, more than
half of the Fortune 500 companies and over 10,000 international companies
are carrying out their corporate activities in Seoul.
Invest in Success
Foreign Direct Investment IncentivesForeign nationals are permitted to invest in every type of business with the exception of industries classified as natural monopolies
and those directly related to national security. The Korean government provides various benefits for foreign direct investment in
accordance with the Foreign Investment Promotion Act.
Foreign Investment Promotion Act
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.
Foreign Direct Investment Incentives
Safeguards for Foreign Investment
Overseas remittance by a foreign investor is guaranteed inaccordance with the introduction of technologies and approved/reported details regarding the foreign investment.A foreign investor or a foreign invested firm is guaranteed thesame treatment as that enjoyed by Korean citizens and firms,with the same tax exemptions and reductions applying toforeign investors and foreign-invested companies.
Freedom of Foreign Investors
A foreign national is permitted to invest in any of the1,145 types of industries according to Korea’s standardindustrial categorization with the exception of industries specified by law.
Acquisition of Real Estate
All foreign nationals, including non-residents, mayacquire real estate in Korea freely. The land acquisitionprocess has been changed from an approval systemto a reporting system to make land acquisition moreconvenient.
Foreign Investment Promotion Act and Incentives for Foreign Investment
according to Seoul City Ordinances
Foreign Direct Investment Incentives | Foreign Investment Promotion Act and Incentives for Foreign Investment according to Seoul City Ordinances 38 • 39
Investin Success
According to related laws such as the Foreign Investment Promotion Act and Foreign Investment Ordinances of Seoul, the City is providing
various 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
Exemption and reduction of corporate, income, acquisition, registration and property taxes.
Basis· Article 9 of the Foreign Investment Promotion Act· Article 121-2 of the Special Tax Treatment Control Act· Article 121-2-2 of the Special Tax Treatment Control Act
Subject
· Industries involving advanced technologies (software development,nano-based technologies, production of medical equipment, etc.)
· Independent foreign investment zones (over USD 30 million for manu-facturing, USD 20 million for tourism, over USD 2 million for R&D)
Details
· Corporate & income tax - 100% exemption for 5 years, 50% reduction forthe following next 2 years
· Acquisition, license, property tax - 100% exemption for 10 years, 50% reduction for the following next 5 years
ApplicationProcedure
· Foreign-invested company submits application to the Minister of Finance & EconomyReviewed by the Foreign Investment Support Review Committee Outcomenotified to the applicant within 20 days Notified to the Mayor of Seoul
Examples
· 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 beexempted 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 advanced technologies within Seoul (five in 2008, two in 2009)
Cash Grants
Basis · Article 14-2 of the Foreign Investment Promotion Act· Article 14 of the Foreign Investment Support Ordinance
Subject
· Construction of a new factory or expansion of an existing factory with aforeign investment of over USD 10 million (companies involving advancedtechnologies, parts & materials industry)
· Job creation (From 50 to 300)
· Establishment of a new R&D facility or expansion of an existing R&D facilitywith over 10 permanent research personnel
Details
· Land purchase expenses and rental support for construction of new factories (R&D facilities)
· Support for construction expenses, capital goods, research equipmentand infrastructure installation expenses
SupportMethod
· Negotiated under 50% of total investment and reviewed by the ForeignInvestment Committee
Employment Subsidy and Educational & Training Subsidy
Basis · Article 14 of the Foreign Investment Promotion Act· Article 15 and 16 of the Foreign Investment Support Ordinance
Subject· Companies that attracted foreign investment, foreign companies investing inSeoul’s 8 new growth engine industries (finance, fashion design, tourism &convention, digital contents, and biomedical) that hire Korean citizens
Conditions · Over 30% foreign investment ratio, 10 or more new permanent jobs
Details · 1 million KRW per new employee for up to 6 months (maximum of 200million won per company)
Examples · 26 employment(education & training) subsidies totaling to 1.9 billion werepaid between 2005 and 2009
* Support from the Small and Medium-sized Enterprise Fund of Seoul (Article 13 of the Foreign Investment Support Ordinance)* National incentive support system to switch from tax support to cash grants starting in 2011.
Exemption of customs duties, individual consumption and value added tax
Basis · Article 121-3 of Special Tax Treatment Control Act ① (exemption of customs duties)· Article 116-5 of Enforcement Ordinance of Special Tax Treatment Control Act ①
Subject· Payment made using invested cash, capital goods purchased using paymentmethods in Korea, capital goods brought as the for investment (companieswith advanced technologies and those operating in foreign investment zones)
ApplicationProcedure
· Submit exemption application to Director of Korean Customs Service
Support for Creating Attractive Investment Conditionsfor Foreign Nationals
Basis · Act 10 of the Foreign Investment Support Ordinance
Concept · Provide support within the budget to the party executing a business thatcreates favorable investment conditions for foreign nationals
Subject
· Parties executing towns for foreign natioanls and global village construction projects
· Parties establishing infrastructure for improving the residential environmentfor foreign nationals
· Parties establishing and operating facilities for improving investment conditionsfor foreign nationals
Details · Parts of the project budget or operating expenses
SupportMethod
· Establish and execute a support plan when necessary
Establishment 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 region
Lighter Building-to-Land Ratio and Floor Space Index Restrictions within FIZ
Basis · Article 19 of the Foreign Investment Support Ordinance and the Execution Regulations of Urban Planning Ordinance
Subject
· A company that establishes a new factory or business site using new foreign investment- Businesses accompanying advanced technologies, industrial support service
companies and strategic industries with over USD 10 million in foreign investment
- Businesses accompanying advanced technologies, industrial support service companies and strategic industries with over USD 5 million in foreign investment
- Businesses with over USD 100 million in foreign investment
Details Reviewed and approved by the Urban Planning Committee of the City of Seoulwithin the execution ordinance of the Act on Planning and Use of National Territory
Foreign Investment Zone Designation Subsidies
A 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 large
foreign investments. Once designated as an FIZ, businesses within the FIZ are exempted from various taxes and burdens.
Subjects of FIZDesignation
· 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 recreationalfacilities, international conferencing facilities, youth training facilities) - Over USD 20 million in foreign investments
· 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.
Incentives· National Tax (Corporate/Income) 100% reduction for the first 5 years, 50% reduction for the following 2 years· 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 infrastructures
Reduction of Rental Fees & Sales Cost of Public Properties
Foreign Investment Promotion Act and Incentives for Foreign Investments according to Ordinances of Seoul 40 • 41
Investin Success
Basis· Article 13-1 of the Foreign Investment Promotion Act (Private Contract)· 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)
Details
· Sale by private contract: Public property may be rented or sold to foreign companies through a private contract
· Rental fee reduction on public properties① Rental fee is over 1% of appraised asset value: When a foreign company uses a shared property for business② 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.
· Reduction on Purchase Cost of Public Property① 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
Examples · Rental fee exempted when leasing public properties such as the DMC High-tech Industry Center, and SIFC (Yeouido)· 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 foreign companies · Additional support for foreign companies · Promoting equal treatment · Equal treatment
Primary incentives · Tax support (Switch to cash grants starting in 2011)
· Subsidies· Tax support (promoting equal treatment) · No additional incentives
Purpose of providing incentives· Implementation of advanced technologies· Advancement of industry support services industry
· Attract regional headquarters of multi-national corporations
· Advancement of high-tech industries andservices industries
· No additional incentives
Types of incentives· Tax support · Land support· Cash grants
· Provide subsidies for regional headquartersof multi-national corporations
· Tax support (promoting equal treatment)· No additional incentives
* 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.
Se