An individual-type Foreign Investment Zone (FIZ) is a tailored location for large-scale investors and foreign investors can choose and designate the location of the investment zone.
1. Criteria for Designation
The FIZ shall be designated when new factory facilities (or workplace) are built or newly installed on existing buildings by the same corporation to install factory facilities, machines, facilities, and devices that can be accounted for separately from existing factory facilities, or when buildings that have not been completed acquired and business activities are conducted after obtaining approval to use the building.
2. Requirements for Designation
The FIZ shall be designated when factory facilities (or workplace) are newly installed which satisfy the required investment amount.
The amount of foreign investment that was executed before application for designation shall be excluded. However, the amount that has been paid as the foreign investment shall be recognized as the amount of foreign investment if it is recognized that it was used for the purpose of receiving foreign investment areas, including real estate purchases in areas designated as individual-type FIZs. If two or more foreign investors are designated as individual-type FIZs, they shall enter into contracts with the foreign investors on the implementation and performance obligations of their investment plans on the year of the designation.
3. Application for Designation
To designate an individual-type FIZ, a mayor or provincial governor shall make the designation plan including the following documents and file it to the Minister of Trade, Industry, and Energy.
4. Rent and Limit on Occupancy
The rent for Individual-type FIZ may be reduced by 100 percent if the Foreign Investment Committee decides that it will have a positive effect on the national economy. The size of the area is less than 50 percent of the foreign investment amount by the company.
5. Alteration of Designation
If changes are made to investment plans and designated notices after being designated as an individual-type FIZs, the designated notice must be changed after deliberation by the Foreign Investment Committee. However, insignificant alterations prescribed separately may be notified through prior consultation with the Minister of Trade, Industry, and Energy.