Biography
Jeju Free International City
Jeju island opens its doors to the world
With population of 539 thousand and land size spanning 1,845km2, Jeju island is figuratively and significantly Korea's best magnet to international tourists attracting as many as five million visitors per year; accounting for 69% of the island's overall industry, tourism is the most significant industry for Jeju island.
Therefore, in an effort to attract more investment into Jeju tourism industry, Korean government has come up with basic plan on Jeju Free International City and Special Act on Jeju Free International City and promises various tax reductions and exemptions including 100% corporate tax, income tax and some local taxes for the first three years and 50%, for the following two years for any investors, both national and international, investing more than U$10~ 20 million in the Korea's largest island. In addition, any eligible company can benefit from 100% exemption of import duties for imported capital goods.
Free Trade Zone shall be designated in some area nearby the Jeju International Airport and is open to national investors as wellas international investors; any investors, both national and international, can benefit from tax deductions for corporate tax, income tax and some local taxes; 100% for the first seven years and 50% for the next three years for international investors; and 100% for the first three years and 50% for the following two years for nationals.
Also, the Jeju administrative institutions established rules that all the process for foreign investors shall be handled in English including providing all the related documents in Enlgish. And to provide an education environment meeting global standards, the authorities decided to allow any foreigners to establish a college, university, graduate school and even a branch school on the island. For this matter, a plan is now in the pipeline to allow exception to applying Korean laws and regulations governing criteria for establishing universities, education courses, entrance requirements and student registration and unconventionally increase autonomy. Under the new plan, all elementary and middle schools located in Jeju island can hire English-natives as temporary teacher for up to three years; and decision rights on entrance requirements for nationals' entering foreigners' schools shall be turned over to the principals of each school; and as discretionary power for school year, school system, and selection of curricular textbooks, all kinds of high schools can be established including international high schools.
And newly established are national-exclusive duty free shops in the airport and harbor of Jeju, where any Korean visitors can make purchases up to four times per year not exceeding U$300 each time with duties, VATs and Special Consumption Taxes exempted. In the meantime, to encourage construction and use of golf courses in the Korea's warmest island, the heavy local taxes against golf courses (five times in Acquisition Tax, up to 25 times of Aggregate Land tax and 17 times of Property Tax) shall be turned into general taxes and development land tax shall also be reduced by 50% and Special Consumption Tax and Sports Promotion Funds on the admission fees shall be reduced, lowering the admission fee from the current 108 thousand won (non-membership-owners) by 40~50%.