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Center of Northeast Asia Knowledge-Based Industry Gyeongsan Knowledge Industry District Center of Northeast Asia Knowledge-Based Industry Gyeongsan Knowledge Industry District builds up the best knowledge-creative Free Economic Zone in the country by combining international high-tech convergence SeoulSeoul districts and Industrial-Academic cooperation IncheonIncheonIncheonIncheon SeoulSeoul

■Status of Gyeongsan Knowledge Industry District DaejeonDaejeon •Location Daehak Ri, Hayang Eup, Gyeongsan City, PohangPohang DaeguDaegu Gyeongbuk Province, GumiGumi DaeguDaegu •Area 3,916,666㎡ GyeongsanGyeongsan •Budget US $ 963 million •Major Industries - Construction equipment & parts UlsanUlsan - Advanced medical equipment, BusanBusan hi-tech medical new material - Green parts - R&D, educational research institutes KTX ■Highly-developed Transportation System Harbor International Airport ■ The center of inland transportation with conveniently situated expressways and railroads

■ The hub of exports and logistics with neighboring airports and harbors

Road Network •Gyeongbu [ to ] Expressway, - Expressway, (8 Exrpessways) Daegu-Busan Expressway, etc Roilroad System •KTX combining Seoul to third largest metropolitan Daegu and Gyeongbuk Province Harbor facilities •Four international ports within n hour drive away Airport •Daegu International Airport, International Airport

■Current progress and future plan

May 6, 2008 Designation of Daegu Gyeong Free Economic Zone Mar 15, 2012 Official Announcement of the Developer of Gyeongsan Knowledge Industry District June 7, 2013 Announcement of Land Compensation From 2014 Beginning of the Construction of Gyeongsan Knowledge Industry District Jan of 2015 Start of lotting-out land Until 2020 Completion of Gyeongsan Knowledge Industry District Construction Construction Machinery & Parts

Advanced Construction Machinery & Parts Specialized Complex

Advanced Construction Convergence Design Center

R&D Educational research institute

■Investment Advantages

Knowledge-Industry Excellent human resources Construction·Machinery Infrastructure and R&D infrastructure Industry Infrastructure

•30 minute distance from global companies such •52 universities, annual 70,000 students, and •Advancement of technologies and Convergence as SAMSUNG, LG, POSCO, and HYUNDAI more than 200 R&D facilities such as Gyeongbuk by strengthening the network between local •Concentrated with automotive parts and IT TechnoPark, Gyeongbuk Research Institute of universities & R&D centers and industrial sectors industry corporations(16.5 percent of South Vehicle Embedded Technology, Korea Textile - Korea Institute of Industrial Technology(KITECH), Korea automotives parts and IT industry Machinery Research Institute, and Center of Pohang Institute of Nano Convergence Technology, corporations) Greencar parts Korea Institute of Robot and Convergence and Gyeongbuk Hybrid Technology Institute •Four Industrial Complexes(6,620,000㎡), •Annually several thousands of medical-related 1,600 small & medium-sized companies human resouces from 20 medical and •Excellent human resource of mechanic and pharmaceutical colleges electronic engineers •Outstanding accessibility to Expressways and - Gyeongsan city 3,600 student out of six universities KTX and strategic Standpoint connecting •Outstanding accessibility to Daegu high-tech and Daegu city 4,700 students annually International Airports and Ports medical complex (within 10km Advanced medical equipment & new material

Land Use Plan

High-tech Waste R&DR&DR&D medical Water Treatment facilitiesfacilitiesfacilitiesfacilities facilities facilitiesfacilitiesfacilitiesfacilitiesfacilitiesHigh-techHigh-techHigh-tech medicalmedicalmedical new material devicedevicedevice andandand medicalmedicalmedical devicedevicedevicenewnewnew andandand materialmaterialmaterial medicalmedicalmedical CommercialCommercialCommercial Logistics facilitiesfacilitiesfacilitiesfacilities test bed R&D facilities use facilitiesfacilitiesfacilitiesfacilitiesfacilitiesfacilitiesfacilities Park Construction Machinery Park Parts Specialized Complex Park Apartment NeighborhoodNeighborhoodNeighborhoodNeighborhood house facilitiesfacilitiesfacilitiesfacilitiesfacilitiesfacilitiesfacilities

Commercial CommercialCommercialCommercial School facilitiesfacilitiesfacilitiesfacilitiesfacilitiesfacilities R&D DetachedDetachedDetachedDetached house househousehouse facilities Park Water TownTownTownTown house househousehouse Water treatment Park Park facilities NeighborhoodNeighborhoodNeighborhood NeighborhoodNeighborhoodfacilitiesfacilitiesfacilitiesfacilitiesfacilitiesfacilities

Water Residential use Commercial use 95 (1,000㎡) (2.5%) 104 (1,000㎡) (2.6%) Industrial, research, educational use Public, logistics use 2,083(1,000㎡)(53.2%) 1,635(1,000㎡) (41.7%)

Green Parts

■Outstanding Accessibility to Global Companies

GyeongsanGyeongsanGyeongsan Daegu KnowledgeKnowledgeKnowledge Pohang IndustryIndustryIndustry Gumi Industry DistrictDistrictDistrict

Ulsan

Busan Huge national project - Gyeongsan Knowledge Industries Districts

Advanced Construction Machinery Parts Specialized Complex

▶Area : 1,111,000㎡, Project period : 2012 ~ 2019, Budget : US $ 824 million

•Advanced Construction Convergence Center - Comprehensive vehicle testing ground(39,962㎡), Assessment center(2,292㎡)

•Green Construction Machinery Parts Special Complex - Logistics Center(49,500㎡), Corporate Laboratory Research Assessment Center (132,232㎡), Company Factory(816,672㎡) - Strong Green Infrastructure - Photovoltaics System, LED street lamp, Eco-efficiency enhancement center

•Development of Core Construction Machinery Design Center technology and Comprehensive technology support

Advanced Convergence Construction Machinery Parts Design Center

▶Area : Area : 4,960㎡, Project Period : 2011 ~ 2015, Budget : US $ 28 million

•Build of Advanced Convergence Construction Machinery Parts Design Center (Research, Design training center, Laboratory, Business support) •Development of design technology and technical support

High-tech Medical Test Bed

▶Area : Area : 6,934㎡, Project Period : 2012 ~ 2016, Budget : US $ 88.6 million

•High-tech Medical Convergence Textile Center - Medical Textile Laboratory, Joint Research & Development, Development of core technology and high-tech material - Evaluation medical equipment, Clean room, Pilot equipment

•Focusing research and development of high-tech medical material

Investment condition Support

Incentive •Manufacturing business : over US $ 10 million •Corporate Income tax : 100% for 3 years, 50% for of FDI ( $ 30 million ) 2 years ( 100% for 5 years, 50% for 2 years ) Tax •Logistics : over US $ 5 million of FDI •Acquisition tax : 100% for 15 years ➺ Benefit ($10 million ) •Property tax : 100% for 10 years, 50% for 5 years •R&D : over US $ 1 million of FDI ( $2 million ) •Custom tax : 100% for 5 years

•Foreign workers engaging in foreign companies ➺ •Income tax : 17% (single tariff)

Land •Available to rent within 50 years (under condition of government owned land or support Foreign Investment Zone)

Cash •Cash grant after negotiating with investor whose FDI ratio is over 30% Grant Gyeongsan Knowledge Industry district integrates with Construction, Machinery & Parts Industry, Hi-tech medical new material, Green parts and R&D Educational research institutes.

Daegu-Gyeongbuk Free Economic zone Authority 15F, KITA Bldg, 489, Dongdaegu-ro, Dong-gu, Daegu, 701-824, ROK Tel. +082-53-550-1963 Fax +082-530550-1918 www.dgfez.go.kr