Time in Yerevan: 11:07,   19 March 2024

Flexible tax system, privileges for foreign businesses: South Korea – attractive country for investors

Flexible tax system, privileges for foreign businesses: South Korea – attractive country for 
investors

YEREVAN, AUGUST 9, ARMENPRESS. IT-superpower South Korea is one of the most attractive countries for investments with its huge economic potential. Over 15,000 foreign companies have invested and are working here, and the country is further willing to attract new investments and is offering foreign investors tax privileges, which make the investment climate more favorable.

The Korea Trade-Investment Promotion Agency (KOTRA), a trade and investment promotion organization operated by the Government of South Korea, has representations in 127 countries around the world.

The Invest KOREA Institute is actively involved in the KOTRA system, working in three directions. It is actively working with public administration employees by carrying out consultations. The second direction of Invest KOREA is the promotion of investments through various programs, and the third direction is the protection of the rights of investors and support.

As part of a media tour organized by the Korean Culture and Information Service, ARMENPRESS’s Editor-in-Chief Shant Khlghatyan met with Director for Investment Public Relations Team at Invest KOREA, Lee HyoYon.

Lee HyoYon said the technology sector is the most attractive area for foreign businesses. There is also big interest for electric vehicle equipment. “The number of foreign companies who’ve invested in Korea is over 15 thousand. Companies who’ve invested in our country the most are from the United States and China,” she said, adding that around 300 companies included in the Fortune 500 have investments in Korea.

Asked whether there are Armenian companies who’ve made investments in Korea, the expert said: “We’ve checked before the interview, however at this moment unfortunately there are no investments from Armenia.”

Presenting the country’s tax privileges for foreign businesses, she said that Korea is engaged in a policy of reducing taxes and duties with the purpose of increasing the competitiveness of the country, so that companies are able to manage their businesses more effectively.

Foreign investors, who acquire land or buildings in Korea for their businesses, receive property tax privilege for a maximum of 7 years, and their property tax can be reduced by 50 to 100 percent.

Korea is also offering privileges in terms of employee income tax. Lee HyoYon said that this tax is decreased by 50% for 5 years in order to involve foreign employees. “Foreign employees can choose their income tax size. For Koreans, this tax is in between 6 to 45 percent, while foreigners get the chance to chose: pay like Koreans or pay a fixed 19% income tax. This is a tax privilege for foreign employees,” she said.

Meanwhile, corporate taxes are in between 10 to 25 percent. Foreign companies are again offered privileges in this regard. “For example, small and medium businesses in the processed manufacturing area that opened in Korea can get a 5-year corporate tax privilege with the possibility of reducing it from 50 to 100 percent. Another privilege: if they invested funds in acquiring equipment then the amount can be reduced from the general corporate tax types. These privileges are granted not only to Korean companies but also foreign companies who’ve invested in Korea,” she said.

Last year, a survey conducted by Bloomberg found South Korea to be the global leader in innovation, and the World Bank’s Doing Business report ranked the country 5th. “Despite Korea being a small country with territory, it has a huge territory for doing business and economic activity,” Lee HyoYon said.

Photos by PENTA PRESS

 

 

 








youtube

AIM banner Website Ad Banner.jpg (235 KB)

All news    


Digital-Card---250x295.jpg (26 KB)

12.png (9 KB)

About agency

Address: Armenia, 22 Saryan Street, Yerevan, 0002, Armenpress
Tel.: +374 11 539818
E-mail: [email protected]