Chungnam Province Prepares for Main Evaluation
Following Environmental Impact Assessment and Consultations
Chungnam Province has officially begun the process for government designation review of the Chungnam Free Economic Zone, which is being promoted to attract foreign corporate investment.
According to the province on the 21st, a report requesting the designation of the Chungnam Free Economic Zone was presented at the 143rd Free Economic Zone Committee meeting of the Ministry of Trade, Industry and Energy, held the previous day at the Korea Institute for the Advancement of Technology in Seoul.
The province plans to proceed with an environmental impact assessment and consultations with relevant ministries before preparing for the main evaluation for final approval.
The Chungnam Free Economic Zone, which will be established on a 13.3 km² site across five districts in the province including Cheonan and Asan, is one of the key projects of the Bay Valley Mega City, designed to attract foreign investment in future mobility and display industries.
If these districts are designated as a free economic zone, it is expected to boost investment from both foreign companies and domestic companies returning to Korea.
In particular, foreign companies investing in the zone will receive various institutional supports and benefits.
According to Article 16 of the Special Act on the Designation and Operation of Free Economic Zones, foreign-invested companies entering the zone are eligible for a 100% reduction in income and corporate taxes for three years, followed by a 50% reduction for the next two years, as well as exemption from local taxes such as acquisition, registration, and property taxes for 15 years.
Notably, the establishment of exclusive casinos for foreigners is also possible. According to Article 23 of the same act, if the amount of foreign investment in tourism exceeds 500 million USD, the establishment of a foreigner-only casino can be permitted.
The province plans to establish the Free Economic Zone Authority, an administrative body dedicated to development affairs, within the first half of the year, and to open it in the second half in conjunction with the Ministry of Trade, Industry and Energy's designation and official announcement.
So Myungsoo, Director of Balanced Regional Development for the province, stated, "Once the free economic zone is designated, it will attract outstanding domestic and international companies and develop into a central axis of Korea's future industries," adding, "We will make thorough preparations for the remaining administrative procedures and the main evaluation."
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