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DGFEZ Korea's Winning DGFEZ_Korea's Winning FEZ DGFEZ 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. Daegu-Gyeongbuk Free Economic Zone Authority F5~6, Daegu Textile Complex, 227, Palgong-ro, Dong-gu, Daegu www.dgfez.go.kr/eng E-mail. [email protected] Tel. +82-53-550-1500 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 Flight Hours to Major Regional Centers Major Ports within 100km help your company establish and operate efficiently · Beijing (1.5 hrs) · Busan · Vladivostok (1.5 hrs) · Ulsan · Shanghai (2 hrs) · Okpo · Tokyo (2 hrs) · Pohang · Hong Kong (3.5 hrs) · Yeongilman · Manila (4 hrs) · Masan · Singapore (6.5 hrs) · Jinhae 02 03 DGFEZ Incentives Daegu-Gyeongbuk Free Economic Zone Incentives include tax exemptions, cash grants, reduction of tariffs and regulations. Tax Reduction & Exemption The Daegu-Gyeongbuk Free Economic Zone Authority was created by the Korean Government in 2008 to offer Requirements Corporate & Earned Income tax Customs Duty Acquisition & Property tax customized facilities and space for Korean and foreign companies operating in Korea and the Asia-Pacific market. - Manufacturing Industry : More than US $30 million of FDI 100% for 5 years, DGFEZ also provides financial incentives and business-friendly government regulations for global companies. - R&D Facility : More than US $2 million of FDI 50% for 2 years thereafter 100% for 5 years 100% for up to 15 years Daegu-Gyeongbuk Free Economic Zone has 8 sites in Daegu Metropolitan City and Gyeongbuk Province. With a - Manufacturing Industry : More than US $10 million of FDI 100% for 3 years, (imported capital goods) - R&D Facility : More than US $1 million of FDI 50% for 2 years thereafter 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. Financial Support Category Requirements Incentives Investment - Over US $30 million of FDI or more than 300 regular employees Location | Daegu-Gyeongbuk, South Korea Up to 20% of FDI Subsidy - Over US $10 million of FDI and one of three categories below Total Area | 19.72km2 - High technology industry Facility - Certified parts & material manufacturing business Special lease rate Available for | Manufacturing, R&D, Logistics Manufacturing Subsidy - Certified advanced technology & products business (1% of land price) Target Industries | Transportation Components (Automotive, Shipbuilding, Aviation), Industry Employment Up to KRW 1 million per employee - Hiring more than 20 new Korean nationals Subsidy exceeding 20 persons for 6 months IT Convergence (Software, Display, Mobile, Robotics), Training Up to KRW 1 million per employee - Hiring and training more than 20 new Korean nationals Medical (Healthcare, Medical devices, Pharmaceutical) Subsidy exceeding 20 persons for 6 months Operating - More than US $5 million of FDI and high technology industry R&D Facility Varies by case Expenses - More than 10 researchers with regular employment 04 05 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 06 07 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 08 09 Target Sector | Automotive Components, Mechatronics, Parts and Materials Size | 1.46km2 Location | Chaesin-dong, Bonchon-dong, and Geumho-eup, Yeongcheon City, Gyeongsangbuk-do Facilities | 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 10 11 Target Sector | Healthcare (international hospital, specialty hospital, medical R&D center), Medical Tourism, Information Technology and Software, Educational Institute Size | 1.23km2 Location | Daeheung-dong, Suseong-gu, Daegu Facilities | Software Convergence Technology Center, Daegu Art Museum, Daegu Stadium, Daegu Baseball Stadium 12 13 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-do Facilities | Next Generation Construction Equipments Design Support Center, Next Generation Construction Equipments Convergence Center, High-Tech Medical Convergence Textile Center 14 15 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) 16 17 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 Pharm 18 19 Target Sector | Biotechnology, Green Energy, Parts and Materials, R&D centers Size | 1.46km2 Location | Heunghae-eup, Buk-gu, Pohang City, Gyeongsangbuk-do Facilities | POSCO, POSCO Power, Yeongilman Port, High-tech R&D foundation POSTECH, Max-Plank Institute, Pohang Accelerator laboratory 20 21 More than 500 foreign companies have invested USD 5.3 billion in Daegu-Gyeongbuk to partner Endorsements with Korea's leading companies and deliver value to Korea's 50 million consumers with high Brett Kimber (President, Linde Korea) purchasing power. These companies also access North East Asia's 1.5 billion consumers. 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
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