Easing Height Restriction from 40m to 60m Leads to 48.2 Billion Won Investment Response → Tax Reduction as a Return Gift

Busan-Jinhae Free Economic Zone Accelerates Investment,
Aims for Global Logistics Hub Status
Second Tax Reduction for Mitsui-Soko Korea's Additional Investment,
Following Naigai

Tax reductions, more tax reductions, and yet more tax reductions?generous tax benefits are pouring in, drawing foreign investment into the Busan-Jinhae Free Economic Zone. The race to become a global logistics hub has already begun.

When the authorities offered the gift of easing building height restrictions to foreign companies wishing to expand their facilities, investments exceeding 40 billion KRW followed. On top of that, large-scale investments brought additional tax reductions, making the business environment highly attractive.

The Busan-Jinhae Free Economic Zone Authority (Commissioner Park Sungho) announced on the 12th that the tax reduction for Mitsui-Soko Korea Co., Ltd.'s additional investment of 48.2 billion KRW has been finalized.

This tax reduction supports the expansion of a logistics center, made possible by the relaxation of height restrictions. Mitsui-Soko Korea met the requirements for the reduction by making an initial investment of USD 10.9 million out of the total 48.2 billion KRW, followed by an additional capital increase of USD 10.1 million in this second phase.

Last December, Gyeongsang Province, the Busan-Jinhae Free Economic Zone Authority, Changwon City, and Mitsui-Soko Korea signed a business agreement worth 45 billion KRW for the expansion of the integrated logistics center.

As a result, reductions in acquisition and property taxes will be applied, along with customs duty benefits. This achievement is the result of active support from the Free Economic Zone Authority in cooperation with the Ministry of Economy and Finance, and marks the second case of foreign investment tax reduction this year, following the tax reduction for Naigai Busan Logistics Center Co., Ltd. in February.

Mitsui-Soko Korea is a wholly foreign-invested company by Japan's Mitsui-Soko Group, operating an advanced logistics center in the Ungdong hinterland of Busan New Port. The company handles a variety of logistics, including automotive parts, shipbuilding and marine equipment, and green coffee beans, establishing a comprehensive logistics system that goes beyond simple storage to include processing, sorting, labeling, and manufacturing.

It ranks first in Korea in the storage and processing of green coffee beans, currently handling about 10% of Korea's green coffee bean imports. Upon completion of this expansion, the processing capacity is expected to increase by up to 50%.

The Free Economic Zone Authority continues to provide proactive administrative support to enhance the growth and logistics competitiveness of foreign-invested companies. Mitsui-Soko Korea faced reduced logistics efficiency due to a 40-meter building height restriction at its existing logistics center. In response, the Authority, in cooperation with Gyeongnam Province, Changwon City, and the Busan Port Authority, relaxed the restriction to 60 meters.

This regulatory relaxation has enabled the construction of a complex logistics center capable of not only storage, but also processing and manufacturing of coffee beans. Accordingly, Mitsui-Soko Korea decided on an additional investment of 48.2 billion KRW.

At the end of March, Mitsui-Soko Korea will begin expanding the integrated logistics center, further strengthening the Northeast Asian logistics network with Busan New Port as its hub.

Commissioner Park Sungho emphasized, "This tax reduction will be a significant milestone in transforming the Busan-Jinhae Free Economic Zone from a simple logistics hub into a center for high value-added logistics industries. We will continue to provide systematic support so that companies can grow in the optimal environment."

The Free Economic Zone Authority is accelerating regulatory improvements and infrastructure expansion to support the continuous growth of foreign-invested companies. By increasing the utilization of port hinterland complexes and creating a business-friendly environment, the Authority plans to actively attract investment from global logistics companies.