Invest Seoul
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Investment Promotion Pamphlet
2009
Seoul Metropolitan Government
Greeting from the Mayor of Seoul
Investment Environment - Market - Infrastructure - Human Resources - Living Environment
Investment Promotion Projects - Digital Media City - Magok District - International Financial Center Seoul - Yongsan International Business District
- Garden Five
Foreign Direct Investment - Current Status of FDI in Seoul - Foreign Investment Success Stories - FDI Incentives
Core Seoul City Projects - Hangang Renaissance Project - Design City & Dongdaemun Design Plaza
Overview of the Republic of Korea Capital Area Population GDP Real GDP Growth Trade volume Average inflation rate (2000-2007) Foreign exchange reserves Market capitalization of Korea’s stock market Flagship industries
Seoul 99,678 km2 48.8 million US$928.7 billion (World no. 15) 5.0%(2007) → 2.1%(2008) US$857,3 billion (World no. 11 as of end-2008) 1.63% (GDP deflator basis) US$212,5 billion (World no.6 as of July 2008) KRW 885.6 trillion (US$ 885.6 trillion, as of July 2009) Shipbuilding (World no. 1) Semiconductor (World no. 3)
Petrochemicals (World no. 3) Automobiles (World no. 4) Electronics (World no. 4) Steel (World no. 6) Membership in major international organizations
UN, OECD, WTO, APEC, BIS, IMF
Free Trade Agreements
Korea-Chile FTA Korea-Singapore FTA Korea-ASEAN FTA Korea-US FTA (awaiting ratification) Korea-EU FTA (awaiting ratification)
Area Population GRDP (including capital region) FDI No. of registered foreign companies No. of registered foreigners
605.25 km2 (0.6%) 10.5 million (21.5%) US$500 billion (47.7%) US$640,4 billion (54.7%) 10,218 (59%) 229,000 (29.9%)
Note: Numbers in parentheses indicate the proportion of Seoul compared to Korea as a whole.
Greeting from the Mayor of Seoul
Welcome to Seoul, one of Asia’s most dynamic cities. The capital of South Korea, Seoul is business-friendly and optimizes its ideal location in the heart of Northeast Asia, a region which accounts for 30% of global trade. Seoul is home to highly capable human resources, a favorable investment environment, cutting edge public systems and infrastructure, as well as unique culture and art. Seoul is definitely a vibrant metropolis where people from all walks of life and cultures can peacefully, happily, and safely coexist.
As Mayor of Seoul, I am well aware that the city has yet to attain its full potential. However, Seoul stands ready to take center stage as the ideal partner for global business success. Following active efforts to boost the city’s international standing, Seoul has now been reborn as a thriving urban center that boasts a favorable climate for business and investment and world-class tourist attractions. When the following projects are concluded: Digital Media City – an international digital culture hub of the future, the International Financial Centre Seoul – a cutting-edge multiuse commercial development located in the center of the Yeouido Financial District, and Magok District – a global green med polis, Seoul will proudly claim its right to be called a truly cosmopolitan city. (중간에 한 단락 생략) It is my sincere hope that you may recognize and reap the full benefit from the true potential of Seoul, a city that really is open for business.
Part I Seoul – The Investment Environment
Market Infrastructure Human Resources Living Environment
As the gateway to Northeast Asia, Seoul provides the essential ingredients for doing business - highly-educated human resources, world-class lT infrastructure. You name it, Seoul has it!
MARKET
◉ The Economic Center of Northeast Asia Northeast Asia represents one of the world’s 3 primary economic blocks and accounts for 1/4 of global population and 1/3 of global GDP. Located at the core of this dynamic center of commerce, Seoul is well-connected to nearly all major cities in the region, an area home to over 2 billion people.
◉ The World’s 11th Largest Trading Power In 2008, Korea recorded US$422 billion in export and US$435,3 billion in import, making it the world’s 11th biggest trading nation. To this end, the Korean government has taken great strides to nurture the country’s knowledge and technology-based industries. Serving as a world leader in market share for semiconductors, mobile phones and displays, Korea also continues to take the upper hand in shipbuilding, petrochemical, automobile and steel industries. ◉ Huge Domestic Market The population of the greater Seoul metropolitan region totals approximately 22 million with a GRDP of nearly US$352 billion. Seoul boasts a huge consumer market which outweighs the GDP volume of Sweden, Belgium, Norway and other advanced economies in Northern Europe.
표제목 영문: World GDP Rankings(US$ Billion) 서울 및 수도권 영문: Greater Seoul Area 출처 영문: Source: World Bank (2008)
INFRASTRUCTURE ◉ State-of-the-Art Airports, Ports and Rail System Located just a short distance away from Seoul, Incheon International Airport, ranked first in service for the past four years and second in logistics and transportation, as well as Incheon Port and other advanced transportation and logistics infrastructure, make the capital region a major regional logistics hub. In 2004, Korea became the 5th nation in the world to introduce a high-speed train – the KTX – enabling commuters to travel from Seoul to the rest of the country within 3 hours.
◉ Public Transportation System Draws Overseas Interest Seoul’s nine subway lines crisscross the city like a spider web with over 312.5 km of track. World-class in terms of safety and effectiveness, Seoul’s subway was recognized by the UITP for best policies in 2005, and the systems and corresponding technology have now been exported overseas to cities like Beijing, Istanbul and Kuala Lumpur.
◉ Information Technology Powerhouse In the World e-Government Rankings conducted by the United Nations Division for Public Administration and Development Management and the American Society for Public Administration, Seoul took the top spot in 2003, 2005 and 2007 for integrating information technology (IT) into its administrative systems. As a result, world-renowned IT companies now choose Korea as a global digital test bed to showcase their cuttingedge products and determine potential marketability.
HUMAN RESOURCES
◉ Unmatched Educational Aspiration and Achievement Korea’s educational zeal is well known, as spending on educational institutes against GDP is ranked second among OECD countries. More than 40% of Seoulites have a bachelor’s degree, and 54 universities in Seoul produce 120,000 graduates with bachelor, master and Ph.D. degrees every year.
◉ Hard-working and Highly Skilled Human Resources Korea’s growth rate in labor productivity is ranked second among OECD countries and first in the world in patent productivity. In addition to science- and IT-related sectors, Korea’s success in its world-renowned shipbuilding, electronics and rapidly growing automobile industry are a direct result of the high-level skills possessed by the Korean workforce.
◉ Korea: Third Overall in Globalization Index According to the globalization indices published by the Confederation of Danish Industry, Korea ranked third in overall globalization indicators after Switzerland and Iceland. In particular, Korea was ranked first in terms of “knowledge and ability.”
LIVING ENVIRONMENT
◉ Abundant Green Space
Bordered by Bukhan Mountain to the north, Gwanak Mountain to the south, and with the mountain known as Namsan located right in the middle of the city, Seoul is a truly green city that is divided by the mighty Han River, nearly 41.5 km long. Officially, 27% of Seoul is “green,” while 1,953 parks serve as venues for rest, relaxation and an escape from everyday life for residents and visitors to the city.
◉ Vibrant Year-round Urban Culture Seoul provides its residents with a secure and convenient environment featuring well-equipped hospitals, banks capable of international transactions of every kind, hypermarts, and a wide array of restaurants serving nearly every type of food under the sun. Furthermore, various cultural events including the Hi! Seoul Festival fill the city with energy all year round. This strong base of culture and sports infrastructure remains from the foundation which was laid prior to Seoul’s successful hosting of the 1988 Summer Olympics and memorable co-hosting of the 2002 FIFA World Cup with Japan.
◉ Top-tier Services for Foreign Residents and Visitors Seoul proactively supports the establishment of international schools to create a more favorable educational environment for children of foreign residents. At present, additional accommodations are being built to provide more housing options for the foreign community. Further improvements have been made to the city’s living environment, and affordable medical services with interpretation service are now available.
* Seoul Global Center First opened in 2008, the Seoul Global Center (SGC) helps non-Korean residents of Seoul enjoy a rewarding and trouble-free life in Korea’s capital city by providing services including business consulting and support, general information on the local living environment, cultural exchange programs and assistance for migrant workers, just to name a few. To assist the mission of the Seoul Global Center, five Global Village Centers have been established in areas with high concentrations of foreign residents, thus enabling them to receive SGC services in their own backyard. http://global.seoul.go.kr
* Seoul Job Plus Center In order to counter the environment of sluggish employment triggered by the recent deterioration in economic conditions both at home and abroad, the Seoul Metropolitan Government opened the Seoul Job Plus Center on January 28, 2009, in a bid to facilitate recruitment by companies and to help jobseekers find new employment. After registering, corporate members may post recruitment announcements on the Web site of the Center and search for information on registered jobseekers free of charge. In addition, corporate members may take advantage of the services of professional vocational counselors who recommend handpicked human resources, thus reducing the time and cost spent finding an appropriate candidate for employment. http://job.seoul.go.kr
Part II Seoul – Investment Promotion Projects Digital Media City Magok International Financial Centre Seoul Yongsan International Business District Garden Five
The Seoul Metropolitan Government has built a wide array of infrastructure to place the city on par with the world’s most well-known metropolises. Digital Media City, International Finance Centre Seoul, Magok District and Garden Five will stand at the forefront of these efforts.
Digital Media City Home to facilities for the development, production and distribution of digital media content Project Overview Prior to the start of the 2002 FIFA World Cup, the Seoul Metropolitan Government developed the area surrounding Seoul’s World Cup Stadium as a future-oriented new urban center called Sangam New Millennium City under a theme promoting the importance of an eco-friendly environment. As part of this ongoing initiative, the core project, Digital Media City (DMC), has been tabbed as the world’s first media complex solely for the digital content sector and will thus spur further development of new growth engines for Seoul. Location Sangam New Millennium City Sangam-dong, Mapo-gu, Seoul Area 569,925 m² Project Period 2002-2014 Target Sectors • Media and Entertainment-related Industries: Television, film, animation, games, music, digital education • Software and IT-related services
Current Status As of August 2009, approximately 82 percent of the land within Digital Media City has been parceled out, with 40 percent of the buildings – more than 20 to date – being completed. To date, large well-established Korean companies and media content businesses/institutions including LG, KBS Media and Korea Creative Content Agency have located in New Millennium City and have been successfully pursuing their business operations alongside such foreign companies as Trump Korea.
- Seoul Lite Seoul Lite, a 656(변경할 것)-meter skyscraper will be built as the Digital Media City’s landmark and a future-oriented, environmentally friendly symbol representing Seoul. This mega project with a total estimated cost of KRW 3.3 trillion (US$ 3.3 trillion) is to be completed in 2015. Economic benefits expected to be generated by the construction of Seoul Lite include the creation of 86,000 jobs, KRW 11 trillion (US$ 11 trillion) in added production and KRW 2 trillion (US$ 2 trillion) in added value. As a future-oriented, eco-friendly building with a platinum grade, the highest rating in terms of environmentally friendly structures, Seoul Lite will set the standard for future skyscrapers. The name, Seoul Lite, signifies the light of Seoul shining on the path to a bright new millennium. Seoul Lite, as the DMC’s landmark, will provide a dynamic momentum to Seoul. (Table) Business Entity: Seoul Lite Tower Co., Ltd. Period: March 2009-2015 Location: F1 and F2 sites in the DMC Complex Size: 133 floors aboveground, 9 basement floors; Land area: 37,280 m2; Total floor area: 724,675 m2 Purpose: Combined business center – business affairs, culture, hotel and residential Building Density: Floor space index: 1,000%, Building coverage ratio: 60% Maximum Height: 656(변경할 것)m – At time of completion, the world’s tallest - Digital Media Street (DMS)
Located within the boundaries of Digital Media City is Digital Media Street (DMS), the world’s first street embracing a so-called “ubiquitous” setting. The Digital Media Street will showcase and implement products from the research efforts of DMC tenant companies, serving as a test bed for state-of-the-art new technologies. The Street will materialize the vision of a futuristic city accommodating cutting-edge technologies. (Table) Period: 2006-2010 Location: Center of the DMC complex, Total length: 1,140 m Goals: Creation of a street epitomizing DMC, a hub of the digital content industry in Northeast Asia A venue to display and publicize cutting-edge technologies in a ubiquitous living environment and a site for experiencing and testing advanced IT products
Details: Establishment of a structure symbolizing DMC, IP-Intelight (state-of-the-art intelligent streetlights), Info booths (kiosks providing information), e-Board, Sing Board, digital facilities, Integrated DMC Operation Center, and information and communications infrastructure Business Opportunities It will be possible to purchase a business site within one of DMC’s advanced industry centers or to rent office space within those centers. Those with interest may refer to the DMC Web site (http://dmc.seoul.go.kr). For inquiries, please contact Digital Media City at: Tel: 02-2171-2794~5 E-mail: [email protected]
Magok District Global Green Med Polis Project Overview In order to seize a leading position in the rapidly evolving arena of global competitiveness, the Seoul Metropolitan Government will develop the district of Magok into an international environmentally friendly industrial complex that will serve as a hub of international exchange and state-of-the-art industries. In line with the paradigm of low-carbon, green growth, Magok will be developed into a global environment-friendly energy town based on the stringent application of the Climate Positive Development Program (CPDP). In the district, a residential, industrial and business complex will be built by 2015 on an area of 3 million m2. All buildings located in the district will have grade-1 energy efficiency, with no less than 40 percent of their energy demand covered by new sources of renewable energy. Furthermore, the Seoul Metropolitan Government has been actively pressing for the establishment of an advanced medical complex by attracting large world-renowned hospitals, universities and research institutes, with a view to transforming the district into a global bio hub. In fact, about 50 percent of all blue-chip bio companies are concentrated in the Seoul area, thus guaranteeing an excellent human and physical infrastructure, as well as easy internal and external access. On the basis of such strengths, changes are currently being implemented to ensure that Magok is on the way to becoming a Global Green Med Polis. Location Magok-dong and Gayang-dong, Seoul Land Size Site 3,364,000m² Project Period 2007-2031 Target Sectors R&D (IT, NT, BT), environmentally friendly energy industries, high-tech industries, medical industries and international affairs Waterfront Town Part of the 1st stage of development of the Magok project will be Magok Waterfront Town, the heart of the Magok district, which will connect the lake located within and the Han River with a waterway to provide easy access for ferries or pleasure boats. Being the first of its kind in Seoul, Magok Waterfront Town will become a unique site for leisure and tourism.
Business Opportunities Sites designated for high-tech and environmentally friendly industries, R&D centers and industrial facilities will be available for purchase or lease. Site purchase will be possible after a public announcement on a land supply plan slated for after December 2010. Development Plan by Stage 3 3rd Stage (2024-2031) Additional high-tech industry support facilities (8% of the total area) 2 2nd Stage (2016-2023) Advanced industry research complex, high-end residential complex (12% of the total area) 1 1st Stage (2009-2015) •The completion of site preparation for a park and infrastructure •Research centers, international business facilities and a high-end residential complex (80% of the total area) For Inquiries, please contact Ms. Sou-Young Kim at: Tel: 02-6361-3520 E-mail: [email protected]
IFC Seoul A new and innovative center for business in Northeast Asia Project Overview Seoul aspires to emerge as an Asian financial center by attracting world-renowned global financial companies. To this end, the Seoul Metropolitan Government is pursuing the International Finance Centre Seoul (IFC Seoul) project as a top priority. As part of these efforts, the Seoul Metropolitan Government concluded an MOU in 2003 with a global company AIG, and the parties reached an agreement in 2004 on an investment of US$1.4 billion for the construction of IFC Seoul. Designated as Seoul’s core cluster industry of the future, finance is being nurtured as one of the city’s new growth engines which also include tourism, digital content, R&D, fashion design and the convention business. Location 23, 23-1 Yeouido-dong, Youngdeungpo-gu, Seoul Land Size Site: 33,058m² Project Period 2003-2013 Target Sectors Financial institutions; consulting, law, and accounting firms; local headquarters of global multinational corporations
Major Facilities IFC Seoul, with a total floor area of 507,273m² will serve as a multi-purpose facility, offering a direct link to Yeouido Subway Station through an underground passage. When complete, IFC Seoul will be home to grade-A office space, retail shops, a hotel and a multiplex theater, thus distinguishing it as a new center for global finance in the heart of Northeast Asia. Business Opportunities Financial sector companies, regional headquarters of multinational companies, consulting firms, laws firms and other commercial facilities will be able to move into the IFC Seoul upon its completion marked for 2012. For inquiries, please contact: Tel: 02-2171-2776 E-mail: [email protected]
The Potential of Korea’s Capital Market As a way of utilizing the financial sector as a next generation growth engine, Korea is concentrating its efforts on further strengthening its financial industry and developing its market. One of the main initiatives is the Capital Markets Consolidation Act which entered into force in February 2009. The country’s stock market capitalization reached KRW 885 trillion(US$885) as of July 2009, ranking Korea 16th worldwide. The trade volume of Korea’s bourse stands at KRW 1,595 trillion(US$ 1,595 trillion), making it the world’s 13th largest.
Yongsan International Business District Seoul’s representative mega international business district Project Overview Yongsan, a sub-center of Seoul linking Myungdong, Euljiro and Yeouido in the northern heart of the city, is to be reborn as a luxurious waterfront city representing Seoul, connected with the renowned Han River. The $28 billion Yongsan International Business District development project, the largest project in the nation’s history, is expected to produce a 140 million floating population per year, create 360,000 jobs and generate KRW 67 trillion in added production and value. With an approximate total floor area of 3 million ㎡, Yongsan International Business District will open a new paradigm of urban development, housing international business, commercial, cultural and residential facilities. Location Seobuichon-dong, Hangangro, Yongsan-gu, Seoul Land Area 566, 000m² Project Period 2006-2016 Target Sectors High-end offices, shopping mall, hotel, entertainment facilities, department store, designer boutiques, convention center, residential/commercial complex, etc.
Master Plan for the Yongsan International Business District “Archipelago 21” designed by world-renowned architect Daniel Libeskind who won the international master plan competition for the Yongsan International Business District in April 2009, is inspired by an archipelago. Anchored by a 665-meter landmark tower that dynamically articulates the harmony of yin and yang in a spiral form, more than 30 buildings ranging from 20 to 70 stories high will present a threedimensional skyline that depicts the golden crown of the Shilla Dynasty, the most exquisite among traditional crowns on earth. The skyline will strike a brilliant harmony with a panoramic view of the Han River, emerging as a new symbol of Seoul able to be seen from all parts of the city. Luxurious Tourism Complex A park, international passenger and logistics terminal, and a sightseeing boat terminal are to be built on the Han River waterfront in conjunction with the Han River Renaissance Project, which is expected to attract 1.2 million foreign visitors per year. A tourism network will also be established to connect the Han River with Mt. Namsan and the Seoul Opera House, with links to the KTX and Incheon International Airport railway, thus making the entire Yongsan area much more convenient to access. Business Opportunities The planned 665-meter landmark tower, mega shopping malls, hotels, department stores, and a cultural center are all included in the plan for the Yongsan International Business District. Starting from 2011 when construction will be implemented on a full scale, numerous business opportunities will be available including facility acquisition and moving in. For inquiries related to this project, please contact: Tel: 02-399-3883 E-mail: [email protected]
Garden Five The largest distribution center in Southeast Seoul
Project Overview A distribution center in Southeast Seoul that will emerge as the country’s largest cultural complex, Garden Five will consist of specialized shopping malls, a distribution complex and a business promotion complex. Centered on specialized shopping malls which will serve as a new venue for merchants relocating from the Cheonggyecheon area in central Seoul, Garden Five will represent a new paradigm of shopping, culture and distribution in the nation by being home to a new urban distribution system and creating a combined cultural space. It will also significantly contribute to revitalizing the local economy. Location Munjeong-dong, Songpa-gu, Seoul Land Size 560,694 m2 Project Period November 2004-December 2011 (Purpose 내용 전체 삭제- project overview 랑 내용 같음) Garden Five Garden Five comprises such specialized shopping malls as Garden Five Life, Garden Five Works and Garden Five Tool as well as Garden Five Express, a distribution complex and Garden Five Dream, a business promotion complex. With a combined total floor area of 820,300 m2, the shopping malls are six times as large as COEX mall, Korea’s representative shopping mall. With 10-11 aboveground floors and 5 floors underground, Garden Five will be built in the form of three blocks. In particular, more than 5 percent of the total construction costs will be poured into the specialized shopping malls for the purpose of operating a new renewable energy generation system using solar energy and subterranean heat. Garden Five will become an environmentally friendly building that reduces energy bills as well as maintenance costs.
Category
Details
Garden Five Life
Culture and shopping (Fashion, accessories, hobbies, electronic goods,
living, etc.) Garden Five Works
Garden Five Tool
Traditional specialized shopping malls relocated from the Cheonggyecheon area (Processing, repair, metal, lighting, printing, etc.) Technical business (Tools, iron goods, cooling and heating, piping, fire fighting, sewing machines, etc.)
Garden Five Express
Comprehensive distribution complex
Garden Five Dream
Business promotion complex supporting the distribution complex
Business Opportunities Garden Five Express, the distribution complex, plans to select business participants under a project financing method in accordance with its detailed development guidelines. Upon formulation of its development plan, Garden Five Dream, the business promotion complex, intends to implement its business undertakings based on conditional land sales. Land purchasers (businesses) may take part in the project in line with detailed development purposes and sales conditions. Related inquiries should inquire to: Tel: 02-2171-2794~5 E-mail: [email protected]
Part III Foreign Direct Investment Current Status of FDI in Seoul Foreign Investment Success Stories FDI Incentives Seoul is home to 130 thousand companies including over 250 Fortune 500 companies in addition to Korean conglomerates like Samsung, LG, Hyundai • Kia Motors, POSCO, and SK.
Current Status of FDI in Seoul In order to improve the domestic foreign investment environment, the government is expanding its investment promotion activities in major investing countries and taking a more active and varied approach to attract foreign investment.
◉ Scope of Foreign Direct Investment Following the implementation of aggressive market opening policies and the subsequent enactment of the Foreign Investment Promotion Act, FDI in Korea amounts to over US$10 billion every year. According to the Financial Times, Seoul ranks no. 9 in the world as a business-friendly city and claimed top position for economic potential in the Asian region according to the fDi Magazine.
◉ Investment by Industry About 90% of inbound foreign investment in Korea has entered the service sector, with finance and insurance FDI accounting for 70% of this amount.
Foreign Investment Success Stories More than 250 of the Fortune Global 500 companies are operating in Seoul. These are joined by more than 10,000 foreign enterprises which are up and running successfully in Korea’s capital city.
◉ Samsung TESCO HomePlus
Overview Samsung TESCO HomePlus, a joint venture between UK-based Tesco PLC and Samsung, ranks second in the discount supermarket segment in Korea, although the chain can claim the highest sales revenue per store. The joint venture is anticipated to take over the no. 1 position in this highly competitive industry by 2012 with an estimated KRW 16 trillion in sales.
Investment Background TESCO PLC, established in the U.K. in 1924, is the largest distribution chain in Great Britain, and the 4th largest distribution chain in the world. Although home to an extremely competitive retail sector with a major presence by both domestic and foreign players, Seoul was chosen by the company as a stepping stone into the Asian market. To this end, it set up Samsung TESCO HomePlus in 1999. Building on its presence in Korea, it entered the Japanese and Chinese markets in 2000, thus expanding the company’s sales network across Asia.
Management Strategy
The HomePlus chain rose to 12th position in the retail sector in only 4 years after its establishment in 1999, and its rapid rise has changed the landscape of Korean retail. An achievement of this magnitude is proof that the company has successfully adapted to the local market and recognizes the unique characteristics of Korean consumers. The Samsung Tesco joint venture represents the epitome of so-called ‘glocalization.’
Business Performance Over the past 8 years Samsung TESCO HomePlus has recorded a whopping average of 47% in sales growth annually, with sales reaching KRW 7.3 trillion in 2008. HomePlus is known to have the highest sales efficiency per square meter among discount stores in Korea. Today, approximately 12,000 employees are working at 55 large discount stores and 39 Express Supermarkets across Korea. In this light, the company is not only outstanding in terms of growth and profitability, but also a big contributor to the Korean economy in terms of job creation.
◉ Standard Chartered First Bank
Overview As a leading global financial institution in Asia, Africa and the Middle East, the UK-based financial services provider, Standard Chartered, has shown a continued interest in expanding its business into Korea. As a direct result, Standard Chartered bought Korea First Bank for US$3.3
billion in 2005, and concluded an M&A deal that would result in the company holding onto all 5,200 employees.
Investment background The rationale behind the Standard Chartered investment is that Korea is the world’s 13th largest economy with US$40 billion worth of value-added that can be generated in the financial market. Against this backdrop, Standard Chartered selected Seoul to be the core country in which to maximize its strategic presence in Asia and to expand the company’s growth potential.
Management Strategy Standard Chartered’s initial foray into Korea came about in order to capitalize on new synergies which would be created by the nationwide network of Korea First Bank when combined with the global reach of Standard Chartered, particularly in regard to human resources and advanced financial techniques. Henceforth, SC First Bank has emerged as one of Korea’s leading banks by offering customers innovative products, differentiated customer service and knowledge of Korean financial market, based on Standard Charter’s advanced business strategies as a financial institution.
Business Performance SC First Bank's operational profit in 2008 rose 11. 6% compared with that of 2007 to reach KRW 414 billion, a level similar to that of CitiBank Korea, and significantly higher that international insurance companies
operating in Korea such as MetLife and Prudential. SC First Bank has 371 branches nationwide as of 2008, and has received the highest credit rating from both Fitch and S&P. Furthermore, SC First Bank has invested an additional KRW 850 billion to expand its operations through affiliates such as SC First Fund Service and SC Securities within Korea.
◉ TRUMPF Korea
Overview Headquartered in Stuttgart, Germany, the Trumpf Group is a high-tech electric and electronics technology leader in the industrial laser and laser system sectors. The company currently operates in 45 countries, and has existed in Korea as Trumpf Korea since 1997. The company built its TruTec high-tech multiplex building in Digital Media City in 2007.
Investment Background Trumpf is a leading company, which ranks 1st in machine tools in Europe and 2nd globally. It also ranks at the top of the global machinery sector. Based on the premise that Seoul is the one location that would allow the company to maximize potential synergies with other businesses in the sector, Trumpf established its East Asian headquarters in the city at the center of the Asian market.
Business Strategy and Performance
Under the Seoul Metropolitan Government’s policy to attract global R&D centers, Trumpf Korea was able to purchase its site within DMC land at a very competitive price. Trumpf currently devotes 27% of its human resources in Asia to Trumpf Korea including technology experts and technology support staff. In addition to the R&D center, the company has also located its application center and training center in DMC to better support Trumpf business interests in Japan, Taiwan and China. At present, Trumpf Korea is in the process of expanding its business areas by providing various on-site services including technology support, technology education and training, facility setup, and technology introduction to Korean clients including Samsung SDI, LG, Display and POSCO.
FDI Incentives (FDI 인센비브 전체는 프레스킷 영문 원고 그대로 복사했습니다. 우리 브로셔에 맞게 저나 업체에서 작업하기 좋도록 정리해 주세요.->프레스킷 하드카피 갖고 있으니 참 고하면 될 것 같습니다) Excluding companies designated as a monopoly or those in sensitive sectors related to national defense, for example, foreign companies can invest in all other industries. Under the Foreign Investment Promotion Act, the Korean government offers various benefits to foreign investors and guarantees remittance of profits. Restrictions on Foreign Investment As designated by the Korea Standard Industry Code (KSIC), 1,145 businesses are open to foreign investment with the exception of those businesses otherwise restricted. Foreign Investment Restricted Categories ►ㆍPostal service, central bank, private mutual aids, funds ► Securities & futures exchange, other financial support services, bill clearing ►ㆍLegislative, judiciary, and administrative bodies, foreign governmental offices, international and foreign institutions ►ㆍR&D in Economics, Humanities and Social Sciences ►ㆍEducational institutions (Preschools, elementary/middle/high schools, colleges, universities, graduate schools, special schools) ►ㆍArtistic/religious/environmental/political/labor organizations Purchase of Real Estate by Foreign Nationals Foreign nationals including non-residents are permitted to purchase real estate in Korea. Moreover, the procedures for acquiring land have been made easier through the acceptance of a notification-based rather than a permission-based system.
FDI Incentives
Support provided for under foreign investment-related regulations Incentives to attract industries of strategic national importance Foreign-invested companies which enhance the global competitiveness of Korean industries are eligible to receive tax reductions. Eligibility High-tech and/or industry support service businesses Incentives National Tax (Corporate Tax and Income Tax): 100% for the first 5 years and 50% for the subsequent 2 years Local Tax (Acquisition Tax and Registration Tax): 100% for the first 10 years and 50% for the subsequent 5 years Customs Tariffs (Special Excise Tax and VAT): 100% for capital goods imported within 3 years of the date of foreign investment notification Incentives for Foreign Investment Zones (FIZs) The FIZ system has been implemented to encourage foreign direct investment. Once a particular area has been designated as an FIZ, incentives such as tax and duty exemption are provided. Criteria for FIZ Designation Manufacturing Manufacturing, Industry Support Services High-tech Businesses31→ FDI of at least US$30 million Tourism Hotel & Resort Industry, Convention Business → FDI of at least US$20 million Logistics Cargo Transport Terminal Complex, Distribution Complex, Port & Airport, SOC→FDI of at least US$10 Million R&D Setting up new or additional R&D facilities →FDI of at least US$2 million →Regular employment of 10 or more full-time researchers with master’s degreelevel education and more than 3 years of research experience Incentives
National Tax (Corporate Tax and Income Tax) Exemption: 100% for the first 5 years and 50% for the subsequent 2 years Local Tax (Acquisition Tax and Registration Tax) Exemption: 100% for the first 10 years and 50% for the subsequent 5 years Exemption of traffic inducement costs, national property rental fees, etc. Restrictions on Foreign Investment As designated by the Korea Standard Industry Code (KSIC), 1,145 businesses are open to foreign investment with the exception of those businesses otherwise restricted.: - Postal service, central bank, private mutual aids, funds, securities & futures exchange, other financial support services, bill clearing - Legislative, judiciary, and administrative bodies, foreign governmental offices, international and foreign institutions - R&D in Economics, Humanities and Social Sciences - Educational institutions (Preschools, elementary/middle/high schools, colleges, universities, graduate schools, special schools) - Artistic/religious/environmental/political/labor organizations Purchase of Real Estate by Foreign Nationals Foreign nationals including non-residents are permitted to purchase real estate in Korea. Moreover, the procedures for acquiring land have been made easier through the acceptance of a notification-based rather than a permission-based system. FDI Incentives as Stipulated by the Ordinance of the Seoul Metropolitan Government Tax Breaks High-tech businesses, industry support services, corporations designated as an FIZ Incentives Local Tax (Acquisition Tax and Registration Tax) Exemption: 100% for the first 10 years and 50% for the subsequent 5 years Property Tax Exemption: 100% for the first 7 years and 50% for the subsequent 3 years Cash Grants For the establishment (or expansion) of industrial factories and/or R&D facilities
Eligibility Criteria FDI of at least US$10 million for the establishment or expansion of industrial facilities → industry support services, high-tech businesses, materials and components industry, establishment or expansion of R&D facilities that regularly employ 10 or more full-time researchers Use of Cash Grants Such grants may be used toward the purchase of and rental costs for industrial and R&D facilities, as well as construction costs, capital goods, purchase costs of R&D equipment and installation costs of infrastructure. Grant The cash grant ratio is determined through negotiations as well as by deliberations of the Foreign Investment Committee. Cash Grant Limit Up to 50% of the notified FDI amount Subsidies for Job Creation and Training Eligibility Criteria Foreign-invested companies whose business areas fall within one of the industry categories deemed by the Seoul Metropolitan Government as strategic industries, and those which newly recruit Korean employees Requirements A foreign-invested company with - 30% or more foreign ownership, and - 10 or more regular employees Available Subsidy Up to KRW1 million in monthly subsidies for each additional employee for a maximum of six months Subsidy Limit Up to KRW200 million per company Rent and Purchase Support for Government-owned Property Rent Reduction for Government-owned Property Rent reduction from between 50-100% is available as long as the reduced rental fee amounts to 1% or more of the total value of the rental property. The rental period is renewable up to a maximum of 50 years. Purchase Price Reduction for Government-owned Property Payment may be made within a period of up to 20 years in multiple installments at an interest rate of 4% per year.
Other Incentives Development Fund for Small- and Medium-Size Enterprises In accordance with the Act on Small- and Medium-Size Enterprise Development, the Seoul Metropolitan Government provides financial subsidies. Deregulation on the building-to-land ratio and floor area ratio in designated sites Eligibility Criteria A company which establishes a factory or business office falling into the following categories of FDI: →FDI of at least US$10 million in a high-tech business, industry support service business, or strategic industry →FDI of at least US$5 million in a high-tech business, an industry support service business, or in R&D → FDI of at least US$100 million Deregulation In accordance with the Enforcement Rule of the Planning and Use of National Land, the scope of deregulation will be determined by the Seoul Metropolitan Government’s Urban Planning Committee. The Scope of Deregulation Building-to-Land Ratio: Within the scope of the law Floor Area Ratio: up to 100% as determined by law Support for Establishment of a Foreign Investment Zone Eligibility Criteria Infrastructure providers in a Foreign Investment Zone Grants A portion of expenditures (within the budget) Support The extent of support is determined for each case when necessary. Support for Improving the Foreign Investment Environment Eligibility Criteria Construction companies establishing residential areas for foreign nationals Infrastructure providers improving the living conditions for foreign nationals Construction companies or operators improving the foreign investment environment Grants A portion of expenditures (within the budget)
Support The extent of support is determined by case when necessary. Support for SOC In accordance with the Act on Private Participation in SOC, a foreign-invested company providing SOC will be given various types of administrative and financial support to ensure profitability.
Foreign Direct Investment Procedures Foreign Direct Investment
Types and Classifications Foreign entry into Korea for business purposes can be classified into 4 categories, with each category subject to different investment regulations. Private business registration by a foreign company is not permitted.
Foreign Entry into Korea Local Corporation, Private Business, Branch, Office Foreign Investment Promotion Act Foreign Exchange Transaction Act Foreign-invested Corporation Establishment and Procedures There are four key steps required to establish a foreign-invested corporation: Foreign Investment Notification, Remittance of Investment Capital, Registration of Incorporation & Business Registration, and FDI Company Registration. Foreign Investment Notification → Remittance of Investment Capital → Incorporation Registration → Incorporation Notification and Business Registration → Transfer of Paid-in Capital to Corporate Account → FDI Company Registration The procedures applied to foreign investors are identical to those applied to Korean nationals excluding two additional steps: Foreign Investment Notification, and FDI Company Registration. In the case of private business registration, however, the ‘registration of incorporation’ step is not required.
Part 4- Core Seoul City Projects
Hangang Renaissance Project Design City Dongdaemun Design Plaza ln today’s world, a city’s competitiveness determines a nation’s competitiveness. The Seoul Metropolitan Government is committed to making Seoul a clean and attractive global city.
The Han River Renaissance Project The Seoul Metropolitan Government plans to reorganize the urban landscape of the city centering on the Han River as a conceptual waterfront city that combines culture, commerce and leisure. Under the Han River Renaissance Project, the mighty river flowing through the center of Seoul will become the most famous tourist destination in Seoul. By developing the urban areas bordering on the Han River, creating a new ecological system, and maximizing the River’s hidden value, the SMG aims to create an eco-friendly city image. This rebirth of the Han River will encourage tourism from beyond both the city and country limits by strengthening the awareness of riverside historical sites and drawing people of all ages to the theme parks being planned. Seoul – 2010 World Design Capital Seoul was designated as the 2010 World Design Capital at a meeting of the General Assembly of the International Design Association in 2007, recognition on a global scale of the prowess of the city’s design vision. The World Design Capital designation is bestowed upon a city that has effectively used design to develop the urban economy and culture and enhance the quality of life of its citizens. The 2010 marks a period in which Seoul will demonstrate its boundless potential as an international design leader that is certain to guide the city’s future global design vision. Dongdaemun Design Plaza & Park Dongdaemun Stadium, which once served as a showcase for modern sports in Korea, was recently torn down due to its outdated facilities. In its stead, Dongdaemun Design Plaza & Park (DDP) is to be built on the site of the stadium to turn the area into an international Mecca of design. On the basis of “Metonymic Landscape” by the world-renowned UK-based architect Zaha Hadid, the DDP is set for completion by late 2011. It will consist of a multipurpose convention center, an exhibition center, a hands-on interpersonal experience center, a museum and an information education center. Through this plan, a razor-sharp competitive edge is expected to be injected into the design industry of Seoul. The Seoul Metropolitan Government, which has been changing the face of urban landscape through design, strives to provide numerous extraordinary sights and pleasures to foreign investors residing and doing business in Seoul in order to enable them to experience Seoul, a progressive and attractive global city.
2009
Seoul Metropolitan Government
Greeting from the Mayor of Seoul
Investment Environment - Market - Infrastructure - Human Resources - Living Environment
Investment Promotion Projects - Digital Media City - Magok District - International Financial Center Seoul - Yongsan International Business District
- Garden Five
Foreign Direct Investment - Current Status of FDI in Seoul - Foreign Investment Success Stories - FDI Incentives
Core Seoul City Projects - Hangang Renaissance Project - Design City & Dongdaemun Design Plaza
Overview of the Republic of Korea Capital Area Population GDP Real GDP Growth Trade volume Average inflation rate (2000-2007) Foreign exchange reserves Market capitalization of Korea’s stock market Flagship industries
Seoul 99,678 km2 48.8 million US$928.7 billion (World no. 15) 5.0%(2007) → 2.1%(2008) US$857,3 billion (World no. 11 as of end-2008) 1.63% (GDP deflator basis) US$212,5 billion (World no.6 as of July 2008) KRW 885.6 trillion (US$ 885.6 trillion, as of July 2009) Shipbuilding (World no. 1) Semiconductor (World no. 3)
Petrochemicals (World no. 3) Automobiles (World no. 4) Electronics (World no. 4) Steel (World no. 6) Membership in major international organizations
UN, OECD, WTO, APEC, BIS, IMF
Free Trade Agreements
Korea-Chile FTA Korea-Singapore FTA Korea-ASEAN FTA Korea-US FTA (awaiting ratification) Korea-EU FTA (awaiting ratification)
Area Population GRDP (including capital region) FDI No. of registered foreign companies No. of registered foreigners
605.25 km2 (0.6%) 10.5 million (21.5%) US$500 billion (47.7%) US$640,4 billion (54.7%) 10,218 (59%) 229,000 (29.9%)
Note: Numbers in parentheses indicate the proportion of Seoul compared to Korea as a whole.
Greeting from the Mayor of Seoul
Welcome to Seoul, one of Asia’s most dynamic cities. The capital of South Korea, Seoul is business-friendly and optimizes its ideal location in the heart of Northeast Asia, a region which accounts for 30% of global trade. Seoul is home to highly capable human resources, a favorable investment environment, cutting edge public systems and infrastructure, as well as unique culture and art. Seoul is definitely a vibrant metropolis where people from all walks of life and cultures can peacefully, happily, and safely coexist.
As Mayor of Seoul, I am well aware that the city has yet to attain its full potential. However, Seoul stands ready to take center stage as the ideal partner for global business success. Following active efforts to boost the city’s international standing, Seoul has now been reborn as a thriving urban center that boasts a favorable climate for business and investment and world-class tourist attractions. When the following projects are concluded: Digital Media City – an international digital culture hub of the future, the International Financial Centre Seoul – a cutting-edge multiuse commercial development located in the center of the Yeouido Financial District, and Magok District – a global green med polis, Seoul will proudly claim its right to be called a truly cosmopolitan city. (중간에 한 단락 생략) It is my sincere hope that you may recognize and reap the full benefit from the true potential of Seoul, a city that really is open for business.
Part I Seoul – The Investment Environment
Market Infrastructure Human Resources Living Environment
As the gateway to Northeast Asia, Seoul provides the essential ingredients for doing business - highly-educated human resources, world-class lT infrastructure. You name it, Seoul has it!
MARKET
◉ The Economic Center of Northeast Asia Northeast Asia represents one of the world’s 3 primary economic blocks and accounts for 1/4 of global population and 1/3 of global GDP. Located at the core of this dynamic center of commerce, Seoul is well-connected to nearly all major cities in the region, an area home to over 2 billion people.
◉ The World’s 11th Largest Trading Power In 2008, Korea recorded US$422 billion in export and US$435,3 billion in import, making it the world’s 11th biggest trading nation. To this end, the Korean government has taken great strides to nurture the country’s knowledge and technology-based industries. Serving as a world leader in market share for semiconductors, mobile phones and displays, Korea also continues to take the upper hand in shipbuilding, petrochemical, automobile and steel industries. ◉ Huge Domestic Market The population of the greater Seoul metropolitan region totals approximately 22 million with a GRDP of nearly US$352 billion. Seoul boasts a huge consumer market which outweighs the GDP volume of Sweden, Belgium, Norway and other advanced economies in Northern Europe.
표제목 영문: World GDP Rankings(US$ Billion) 서울 및 수도권 영문: Greater Seoul Area 출처 영문: Source: World Bank (2008)
INFRASTRUCTURE ◉ State-of-the-Art Airports, Ports and Rail System Located just a short distance away from Seoul, Incheon International Airport, ranked first in service for the past four years and second in logistics and transportation, as well as Incheon Port and other advanced transportation and logistics infrastructure, make the capital region a major regional logistics hub. In 2004, Korea became the 5th nation in the world to introduce a high-speed train – the KTX – enabling commuters to travel from Seoul to the rest of the country within 3 hours.
◉ Public Transportation System Draws Overseas Interest Seoul’s nine subway lines crisscross the city like a spider web with over 312.5 km of track. World-class in terms of safety and effectiveness, Seoul’s subway was recognized by the UITP for best policies in 2005, and the systems and corresponding technology have now been exported overseas to cities like Beijing, Istanbul and Kuala Lumpur.
◉ Information Technology Powerhouse In the World e-Government Rankings conducted by the United Nations Division for Public Administration and Development Management and the American Society for Public Administration, Seoul took the top spot in 2003, 2005 and 2007 for integrating information technology (IT) into its administrative systems. As a result, world-renowned IT companies now choose Korea as a global digital test bed to showcase their cuttingedge products and determine potential marketability.
HUMAN RESOURCES
◉ Unmatched Educational Aspiration and Achievement Korea’s educational zeal is well known, as spending on educational institutes against GDP is ranked second among OECD countries. More than 40% of Seoulites have a bachelor’s degree, and 54 universities in Seoul produce 120,000 graduates with bachelor, master and Ph.D. degrees every year.
◉ Hard-working and Highly Skilled Human Resources Korea’s growth rate in labor productivity is ranked second among OECD countries and first in the world in patent productivity. In addition to science- and IT-related sectors, Korea’s success in its world-renowned shipbuilding, electronics and rapidly growing automobile industry are a direct result of the high-level skills possessed by the Korean workforce.
◉ Korea: Third Overall in Globalization Index According to the globalization indices published by the Confederation of Danish Industry, Korea ranked third in overall globalization indicators after Switzerland and Iceland. In particular, Korea was ranked first in terms of “knowledge and ability.”
LIVING ENVIRONMENT
◉ Abundant Green Space
Bordered by Bukhan Mountain to the north, Gwanak Mountain to the south, and with the mountain known as Namsan located right in the middle of the city, Seoul is a truly green city that is divided by the mighty Han River, nearly 41.5 km long. Officially, 27% of Seoul is “green,” while 1,953 parks serve as venues for rest, relaxation and an escape from everyday life for residents and visitors to the city.
◉ Vibrant Year-round Urban Culture Seoul provides its residents with a secure and convenient environment featuring well-equipped hospitals, banks capable of international transactions of every kind, hypermarts, and a wide array of restaurants serving nearly every type of food under the sun. Furthermore, various cultural events including the Hi! Seoul Festival fill the city with energy all year round. This strong base of culture and sports infrastructure remains from the foundation which was laid prior to Seoul’s successful hosting of the 1988 Summer Olympics and memorable co-hosting of the 2002 FIFA World Cup with Japan.
◉ Top-tier Services for Foreign Residents and Visitors Seoul proactively supports the establishment of international schools to create a more favorable educational environment for children of foreign residents. At present, additional accommodations are being built to provide more housing options for the foreign community. Further improvements have been made to the city’s living environment, and affordable medical services with interpretation service are now available.
* Seoul Global Center First opened in 2008, the Seoul Global Center (SGC) helps non-Korean residents of Seoul enjoy a rewarding and trouble-free life in Korea’s capital city by providing services including business consulting and support, general information on the local living environment, cultural exchange programs and assistance for migrant workers, just to name a few. To assist the mission of the Seoul Global Center, five Global Village Centers have been established in areas with high concentrations of foreign residents, thus enabling them to receive SGC services in their own backyard. http://global.seoul.go.kr
* Seoul Job Plus Center In order to counter the environment of sluggish employment triggered by the recent deterioration in economic conditions both at home and abroad, the Seoul Metropolitan Government opened the Seoul Job Plus Center on January 28, 2009, in a bid to facilitate recruitment by companies and to help jobseekers find new employment. After registering, corporate members may post recruitment announcements on the Web site of the Center and search for information on registered jobseekers free of charge. In addition, corporate members may take advantage of the services of professional vocational counselors who recommend handpicked human resources, thus reducing the time and cost spent finding an appropriate candidate for employment. http://job.seoul.go.kr
Part II Seoul – Investment Promotion Projects Digital Media City Magok International Financial Centre Seoul Yongsan International Business District Garden Five
The Seoul Metropolitan Government has built a wide array of infrastructure to place the city on par with the world’s most well-known metropolises. Digital Media City, International Finance Centre Seoul, Magok District and Garden Five will stand at the forefront of these efforts.
Digital Media City Home to facilities for the development, production and distribution of digital media content Project Overview Prior to the start of the 2002 FIFA World Cup, the Seoul Metropolitan Government developed the area surrounding Seoul’s World Cup Stadium as a future-oriented new urban center called Sangam New Millennium City under a theme promoting the importance of an eco-friendly environment. As part of this ongoing initiative, the core project, Digital Media City (DMC), has been tabbed as the world’s first media complex solely for the digital content sector and will thus spur further development of new growth engines for Seoul. Location Sangam New Millennium City Sangam-dong, Mapo-gu, Seoul Area 569,925 m² Project Period 2002-2014 Target Sectors • Media and Entertainment-related Industries: Television, film, animation, games, music, digital education • Software and IT-related services
Current Status As of August 2009, approximately 82 percent of the land within Digital Media City has been parceled out, with 40 percent of the buildings – more than 20 to date – being completed. To date, large well-established Korean companies and media content businesses/institutions including LG, KBS Media and Korea Creative Content Agency have located in New Millennium City and have been successfully pursuing their business operations alongside such foreign companies as Trump Korea.
- Seoul Lite Seoul Lite, a 656(변경할 것)-meter skyscraper will be built as the Digital Media City’s landmark and a future-oriented, environmentally friendly symbol representing Seoul. This mega project with a total estimated cost of KRW 3.3 trillion (US$ 3.3 trillion) is to be completed in 2015. Economic benefits expected to be generated by the construction of Seoul Lite include the creation of 86,000 jobs, KRW 11 trillion (US$ 11 trillion) in added production and KRW 2 trillion (US$ 2 trillion) in added value. As a future-oriented, eco-friendly building with a platinum grade, the highest rating in terms of environmentally friendly structures, Seoul Lite will set the standard for future skyscrapers. The name, Seoul Lite, signifies the light of Seoul shining on the path to a bright new millennium. Seoul Lite, as the DMC’s landmark, will provide a dynamic momentum to Seoul.
Located within the boundaries of Digital Media City is Digital Media Street (DMS), the world’s first street embracing a so-called “ubiquitous” setting. The Digital Media Street will showcase and implement products from the research efforts of DMC tenant companies, serving as a test bed for state-of-the-art new technologies. The Street will materialize the vision of a futuristic city accommodating cutting-edge technologies.
Details: Establishment of a structure symbolizing DMC, IP-Intelight (state-of-the-art intelligent streetlights), Info booths (kiosks providing information), e-Board, Sing Board, digital facilities, Integrated DMC Operation Center, and information and communications infrastructure Business Opportunities It will be possible to purchase a business site within one of DMC’s advanced industry centers or to rent office space within those centers. Those with interest may refer to the DMC Web site (http://dmc.seoul.go.kr). For inquiries, please contact Digital Media City at: Tel: 02-2171-2794~5 E-mail: [email protected]
Magok District Global Green Med Polis Project Overview In order to seize a leading position in the rapidly evolving arena of global competitiveness, the Seoul Metropolitan Government will develop the district of Magok into an international environmentally friendly industrial complex that will serve as a hub of international exchange and state-of-the-art industries. In line with the paradigm of low-carbon, green growth, Magok will be developed into a global environment-friendly energy town based on the stringent application of the Climate Positive Development Program (CPDP). In the district, a residential, industrial and business complex will be built by 2015 on an area of 3 million m2. All buildings located in the district will have grade-1 energy efficiency, with no less than 40 percent of their energy demand covered by new sources of renewable energy. Furthermore, the Seoul Metropolitan Government has been actively pressing for the establishment of an advanced medical complex by attracting large world-renowned hospitals, universities and research institutes, with a view to transforming the district into a global bio hub. In fact, about 50 percent of all blue-chip bio companies are concentrated in the Seoul area, thus guaranteeing an excellent human and physical infrastructure, as well as easy internal and external access. On the basis of such strengths, changes are currently being implemented to ensure that Magok is on the way to becoming a Global Green Med Polis. Location Magok-dong and Gayang-dong, Seoul Land Size Site 3,364,000m² Project Period 2007-2031 Target Sectors R&D (IT, NT, BT), environmentally friendly energy industries, high-tech industries, medical industries and international affairs Waterfront Town Part of the 1st stage of development of the Magok project will be Magok Waterfront Town, the heart of the Magok district, which will connect the lake located within and the Han River with a waterway to provide easy access for ferries or pleasure boats. Being the first of its kind in Seoul, Magok Waterfront Town will become a unique site for leisure and tourism.
Business Opportunities Sites designated for high-tech and environmentally friendly industries, R&D centers and industrial facilities will be available for purchase or lease. Site purchase will be possible after a public announcement on a land supply plan slated for after December 2010. Development Plan by Stage 3 3rd Stage (2024-2031) Additional high-tech industry support facilities (8% of the total area) 2 2nd Stage (2016-2023) Advanced industry research complex, high-end residential complex (12% of the total area) 1 1st Stage (2009-2015) •The completion of site preparation for a park and infrastructure •Research centers, international business facilities and a high-end residential complex (80% of the total area) For Inquiries, please contact Ms. Sou-Young Kim at: Tel: 02-6361-3520 E-mail: [email protected]
IFC Seoul A new and innovative center for business in Northeast Asia Project Overview Seoul aspires to emerge as an Asian financial center by attracting world-renowned global financial companies. To this end, the Seoul Metropolitan Government is pursuing the International Finance Centre Seoul (IFC Seoul) project as a top priority. As part of these efforts, the Seoul Metropolitan Government concluded an MOU in 2003 with a global company AIG, and the parties reached an agreement in 2004 on an investment of US$1.4 billion for the construction of IFC Seoul. Designated as Seoul’s core cluster industry of the future, finance is being nurtured as one of the city’s new growth engines which also include tourism, digital content, R&D, fashion design and the convention business. Location 23, 23-1 Yeouido-dong, Youngdeungpo-gu, Seoul Land Size Site: 33,058m² Project Period 2003-2013 Target Sectors Financial institutions; consulting, law, and accounting firms; local headquarters of global multinational corporations
Major Facilities IFC Seoul, with a total floor area of 507,273m² will serve as a multi-purpose facility, offering a direct link to Yeouido Subway Station through an underground passage. When complete, IFC Seoul will be home to grade-A office space, retail shops, a hotel and a multiplex theater, thus distinguishing it as a new center for global finance in the heart of Northeast Asia. Business Opportunities Financial sector companies, regional headquarters of multinational companies, consulting firms, laws firms and other commercial facilities will be able to move into the IFC Seoul upon its completion marked for 2012. For inquiries, please contact: Tel: 02-2171-2776 E-mail: [email protected]
The Potential of Korea’s Capital Market As a way of utilizing the financial sector as a next generation growth engine, Korea is concentrating its efforts on further strengthening its financial industry and developing its market. One of the main initiatives is the Capital Markets Consolidation Act which entered into force in February 2009. The country’s stock market capitalization reached KRW 885 trillion(US$885) as of July 2009, ranking Korea 16th worldwide. The trade volume of Korea’s bourse stands at KRW 1,595 trillion(US$ 1,595 trillion), making it the world’s 13th largest.
Yongsan International Business District Seoul’s representative mega international business district Project Overview Yongsan, a sub-center of Seoul linking Myungdong, Euljiro and Yeouido in the northern heart of the city, is to be reborn as a luxurious waterfront city representing Seoul, connected with the renowned Han River. The $28 billion Yongsan International Business District development project, the largest project in the nation’s history, is expected to produce a 140 million floating population per year, create 360,000 jobs and generate KRW 67 trillion in added production and value. With an approximate total floor area of 3 million ㎡, Yongsan International Business District will open a new paradigm of urban development, housing international business, commercial, cultural and residential facilities. Location Seobuichon-dong, Hangangro, Yongsan-gu, Seoul Land Area 566, 000m² Project Period 2006-2016 Target Sectors High-end offices, shopping mall, hotel, entertainment facilities, department store, designer boutiques, convention center, residential/commercial complex, etc.
Master Plan for the Yongsan International Business District “Archipelago 21” designed by world-renowned architect Daniel Libeskind who won the international master plan competition for the Yongsan International Business District in April 2009, is inspired by an archipelago. Anchored by a 665-meter landmark tower that dynamically articulates the harmony of yin and yang in a spiral form, more than 30 buildings ranging from 20 to 70 stories high will present a threedimensional skyline that depicts the golden crown of the Shilla Dynasty, the most exquisite among traditional crowns on earth. The skyline will strike a brilliant harmony with a panoramic view of the Han River, emerging as a new symbol of Seoul able to be seen from all parts of the city. Luxurious Tourism Complex A park, international passenger and logistics terminal, and a sightseeing boat terminal are to be built on the Han River waterfront in conjunction with the Han River Renaissance Project, which is expected to attract 1.2 million foreign visitors per year. A tourism network will also be established to connect the Han River with Mt. Namsan and the Seoul Opera House, with links to the KTX and Incheon International Airport railway, thus making the entire Yongsan area much more convenient to access. Business Opportunities The planned 665-meter landmark tower, mega shopping malls, hotels, department stores, and a cultural center are all included in the plan for the Yongsan International Business District. Starting from 2011 when construction will be implemented on a full scale, numerous business opportunities will be available including facility acquisition and moving in. For inquiries related to this project, please contact: Tel: 02-399-3883 E-mail: [email protected]
Garden Five The largest distribution center in Southeast Seoul
Project Overview A distribution center in Southeast Seoul that will emerge as the country’s largest cultural complex, Garden Five will consist of specialized shopping malls, a distribution complex and a business promotion complex. Centered on specialized shopping malls which will serve as a new venue for merchants relocating from the Cheonggyecheon area in central Seoul, Garden Five will represent a new paradigm of shopping, culture and distribution in the nation by being home to a new urban distribution system and creating a combined cultural space. It will also significantly contribute to revitalizing the local economy. Location Munjeong-dong, Songpa-gu, Seoul Land Size 560,694 m2 Project Period November 2004-December 2011 (Purpose 내용 전체 삭제- project overview 랑 내용 같음) Garden Five Garden Five comprises such specialized shopping malls as Garden Five Life, Garden Five Works and Garden Five Tool as well as Garden Five Express, a distribution complex and Garden Five Dream, a business promotion complex. With a combined total floor area of 820,300 m2, the shopping malls are six times as large as COEX mall, Korea’s representative shopping mall. With 10-11 aboveground floors and 5 floors underground, Garden Five will be built in the form of three blocks. In particular, more than 5 percent of the total construction costs will be poured into the specialized shopping malls for the purpose of operating a new renewable energy generation system using solar energy and subterranean heat. Garden Five will become an environmentally friendly building that reduces energy bills as well as maintenance costs.
Category
Details
Garden Five Life
Culture and shopping (Fashion, accessories, hobbies, electronic goods,
living, etc.) Garden Five Works
Garden Five Tool
Traditional specialized shopping malls relocated from the Cheonggyecheon area (Processing, repair, metal, lighting, printing, etc.) Technical business (Tools, iron goods, cooling and heating, piping, fire fighting, sewing machines, etc.)
Garden Five Express
Comprehensive distribution complex
Garden Five Dream
Business promotion complex supporting the distribution complex
Business Opportunities Garden Five Express, the distribution complex, plans to select business participants under a project financing method in accordance with its detailed development guidelines. Upon formulation of its development plan, Garden Five Dream, the business promotion complex, intends to implement its business undertakings based on conditional land sales. Land purchasers (businesses) may take part in the project in line with detailed development purposes and sales conditions. Related inquiries should inquire to: Tel: 02-2171-2794~5 E-mail: [email protected]
Part III Foreign Direct Investment Current Status of FDI in Seoul Foreign Investment Success Stories FDI Incentives Seoul is home to 130 thousand companies including over 250 Fortune 500 companies in addition to Korean conglomerates like Samsung, LG, Hyundai • Kia Motors, POSCO, and SK.
Current Status of FDI in Seoul In order to improve the domestic foreign investment environment, the government is expanding its investment promotion activities in major investing countries and taking a more active and varied approach to attract foreign investment.
◉ Scope of Foreign Direct Investment Following the implementation of aggressive market opening policies and the subsequent enactment of the Foreign Investment Promotion Act, FDI in Korea amounts to over US$10 billion every year. According to the Financial Times, Seoul ranks no. 9 in the world as a business-friendly city and claimed top position for economic potential in the Asian region according to the fDi Magazine.
◉ Investment by Industry About 90% of inbound foreign investment in Korea has entered the service sector, with finance and insurance FDI accounting for 70% of this amount.
Foreign Investment Success Stories More than 250 of the Fortune Global 500 companies are operating in Seoul. These are joined by more than 10,000 foreign enterprises which are up and running successfully in Korea’s capital city.
◉ Samsung TESCO HomePlus
Overview Samsung TESCO HomePlus, a joint venture between UK-based Tesco PLC and Samsung, ranks second in the discount supermarket segment in Korea, although the chain can claim the highest sales revenue per store. The joint venture is anticipated to take over the no. 1 position in this highly competitive industry by 2012 with an estimated KRW 16 trillion in sales.
Investment Background TESCO PLC, established in the U.K. in 1924, is the largest distribution chain in Great Britain, and the 4th largest distribution chain in the world. Although home to an extremely competitive retail sector with a major presence by both domestic and foreign players, Seoul was chosen by the company as a stepping stone into the Asian market. To this end, it set up Samsung TESCO HomePlus in 1999. Building on its presence in Korea, it entered the Japanese and Chinese markets in 2000, thus expanding the company’s sales network across Asia.
Management Strategy
The HomePlus chain rose to 12th position in the retail sector in only 4 years after its establishment in 1999, and its rapid rise has changed the landscape of Korean retail. An achievement of this magnitude is proof that the company has successfully adapted to the local market and recognizes the unique characteristics of Korean consumers. The Samsung Tesco joint venture represents the epitome of so-called ‘glocalization.’
Business Performance Over the past 8 years Samsung TESCO HomePlus has recorded a whopping average of 47% in sales growth annually, with sales reaching KRW 7.3 trillion in 2008. HomePlus is known to have the highest sales efficiency per square meter among discount stores in Korea. Today, approximately 12,000 employees are working at 55 large discount stores and 39 Express Supermarkets across Korea. In this light, the company is not only outstanding in terms of growth and profitability, but also a big contributor to the Korean economy in terms of job creation.
◉ Standard Chartered First Bank
Overview As a leading global financial institution in Asia, Africa and the Middle East, the UK-based financial services provider, Standard Chartered, has shown a continued interest in expanding its business into Korea. As a direct result, Standard Chartered bought Korea First Bank for US$3.3
billion in 2005, and concluded an M&A deal that would result in the company holding onto all 5,200 employees.
Investment background The rationale behind the Standard Chartered investment is that Korea is the world’s 13th largest economy with US$40 billion worth of value-added that can be generated in the financial market. Against this backdrop, Standard Chartered selected Seoul to be the core country in which to maximize its strategic presence in Asia and to expand the company’s growth potential.
Management Strategy Standard Chartered’s initial foray into Korea came about in order to capitalize on new synergies which would be created by the nationwide network of Korea First Bank when combined with the global reach of Standard Chartered, particularly in regard to human resources and advanced financial techniques. Henceforth, SC First Bank has emerged as one of Korea’s leading banks by offering customers innovative products, differentiated customer service and knowledge of Korean financial market, based on Standard Charter’s advanced business strategies as a financial institution.
Business Performance SC First Bank's operational profit in 2008 rose 11. 6% compared with that of 2007 to reach KRW 414 billion, a level similar to that of CitiBank Korea, and significantly higher that international insurance companies
operating in Korea such as MetLife and Prudential. SC First Bank has 371 branches nationwide as of 2008, and has received the highest credit rating from both Fitch and S&P. Furthermore, SC First Bank has invested an additional KRW 850 billion to expand its operations through affiliates such as SC First Fund Service and SC Securities within Korea.
◉ TRUMPF Korea
Overview Headquartered in Stuttgart, Germany, the Trumpf Group is a high-tech electric and electronics technology leader in the industrial laser and laser system sectors. The company currently operates in 45 countries, and has existed in Korea as Trumpf Korea since 1997. The company built its TruTec high-tech multiplex building in Digital Media City in 2007.
Investment Background Trumpf is a leading company, which ranks 1st in machine tools in Europe and 2nd globally. It also ranks at the top of the global machinery sector. Based on the premise that Seoul is the one location that would allow the company to maximize potential synergies with other businesses in the sector, Trumpf established its East Asian headquarters in the city at the center of the Asian market.
Business Strategy and Performance
Under the Seoul Metropolitan Government’s policy to attract global R&D centers, Trumpf Korea was able to purchase its site within DMC land at a very competitive price. Trumpf currently devotes 27% of its human resources in Asia to Trumpf Korea including technology experts and technology support staff. In addition to the R&D center, the company has also located its application center and training center in DMC to better support Trumpf business interests in Japan, Taiwan and China. At present, Trumpf Korea is in the process of expanding its business areas by providing various on-site services including technology support, technology education and training, facility setup, and technology introduction to Korean clients including Samsung SDI, LG, Display and POSCO.
FDI Incentives (FDI 인센비브 전체는 프레스킷 영문 원고 그대로 복사했습니다. 우리 브로셔에 맞게 저나 업체에서 작업하기 좋도록 정리해 주세요.->프레스킷 하드카피 갖고 있으니 참 고하면 될 것 같습니다) Excluding companies designated as a monopoly or those in sensitive sectors related to national defense, for example, foreign companies can invest in all other industries. Under the Foreign Investment Promotion Act, the Korean government offers various benefits to foreign investors and guarantees remittance of profits. Restrictions on Foreign Investment As designated by the Korea Standard Industry Code (KSIC), 1,145 businesses are open to foreign investment with the exception of those businesses otherwise restricted. Foreign Investment Restricted Categories ►ㆍPostal service, central bank, private mutual aids, funds ► Securities & futures exchange, other financial support services, bill clearing ►ㆍLegislative, judiciary, and administrative bodies, foreign governmental offices, international and foreign institutions ►ㆍR&D in Economics, Humanities and Social Sciences ►ㆍEducational institutions (Preschools, elementary/middle/high schools, colleges, universities, graduate schools, special schools) ►ㆍArtistic/religious/environmental/political/labor organizations Purchase of Real Estate by Foreign Nationals Foreign nationals including non-residents are permitted to purchase real estate in Korea. Moreover, the procedures for acquiring land have been made easier through the acceptance of a notification-based rather than a permission-based system.
FDI Incentives
Support provided for under foreign investment-related regulations Incentives to attract industries of strategic national importance Foreign-invested companies which enhance the global competitiveness of Korean industries are eligible to receive tax reductions. Eligibility High-tech and/or industry support service businesses Incentives National Tax (Corporate Tax and Income Tax): 100% for the first 5 years and 50% for the subsequent 2 years Local Tax (Acquisition Tax and Registration Tax): 100% for the first 10 years and 50% for the subsequent 5 years Customs Tariffs (Special Excise Tax and VAT): 100% for capital goods imported within 3 years of the date of foreign investment notification Incentives for Foreign Investment Zones (FIZs) The FIZ system has been implemented to encourage foreign direct investment. Once a particular area has been designated as an FIZ, incentives such as tax and duty exemption are provided. Criteria for FIZ Designation Manufacturing Manufacturing, Industry Support Services High-tech Businesses31→ FDI of at least US$30 million Tourism Hotel & Resort Industry, Convention Business → FDI of at least US$20 million Logistics Cargo Transport Terminal Complex, Distribution Complex, Port & Airport, SOC→FDI of at least US$10 Million R&D Setting up new or additional R&D facilities →FDI of at least US$2 million →Regular employment of 10 or more full-time researchers with master’s degreelevel education and more than 3 years of research experience Incentives
National Tax (Corporate Tax and Income Tax) Exemption: 100% for the first 5 years and 50% for the subsequent 2 years Local Tax (Acquisition Tax and Registration Tax) Exemption: 100% for the first 10 years and 50% for the subsequent 5 years Exemption of traffic inducement costs, national property rental fees, etc. Restrictions on Foreign Investment As designated by the Korea Standard Industry Code (KSIC), 1,145 businesses are open to foreign investment with the exception of those businesses otherwise restricted.
Eligibility Criteria FDI of at least US$10 million for the establishment or expansion of industrial facilities → industry support services, high-tech businesses, materials and components industry, establishment or expansion of R&D facilities that regularly employ 10 or more full-time researchers Use of Cash Grants Such grants may be used toward the purchase of and rental costs for industrial and R&D facilities, as well as construction costs, capital goods, purchase costs of R&D equipment and installation costs of infrastructure. Grant The cash grant ratio is determined through negotiations as well as by deliberations of the Foreign Investment Committee. Cash Grant Limit Up to 50% of the notified FDI amount Subsidies for Job Creation and Training Eligibility Criteria Foreign-invested companies whose business areas fall within one of the industry categories deemed by the Seoul Metropolitan Government as strategic industries, and those which newly recruit Korean employees Requirements A foreign-invested company with - 30% or more foreign ownership, and - 10 or more regular employees Available Subsidy Up to KRW1 million in monthly subsidies for each additional employee for a maximum of six months Subsidy Limit Up to KRW200 million per company Rent and Purchase Support for Government-owned Property Rent Reduction for Government-owned Property Rent reduction from between 50-100% is available as long as the reduced rental fee amounts to 1% or more of the total value of the rental property. The rental period is renewable up to a maximum of 50 years. Purchase Price Reduction for Government-owned Property Payment may be made within a period of up to 20 years in multiple installments at an interest rate of 4% per year.
Other Incentives Development Fund for Small- and Medium-Size Enterprises In accordance with the Act on Small- and Medium-Size Enterprise Development, the Seoul Metropolitan Government provides financial subsidies. Deregulation on the building-to-land ratio and floor area ratio in designated sites Eligibility Criteria A company which establishes a factory or business office falling into the following categories of FDI: →FDI of at least US$10 million in a high-tech business, industry support service business, or strategic industry →FDI of at least US$5 million in a high-tech business, an industry support service business, or in R&D → FDI of at least US$100 million Deregulation In accordance with the Enforcement Rule of the Planning and Use of National Land, the scope of deregulation will be determined by the Seoul Metropolitan Government’s Urban Planning Committee. The Scope of Deregulation Building-to-Land Ratio: Within the scope of the law Floor Area Ratio: up to 100% as determined by law Support for Establishment of a Foreign Investment Zone Eligibility Criteria Infrastructure providers in a Foreign Investment Zone Grants A portion of expenditures (within the budget) Support The extent of support is determined for each case when necessary. Support for Improving the Foreign Investment Environment Eligibility Criteria Construction companies establishing residential areas for foreign nationals Infrastructure providers improving the living conditions for foreign nationals Construction companies or operators improving the foreign investment environment Grants A portion of expenditures (within the budget)
Support The extent of support is determined by case when necessary. Support for SOC In accordance with the Act on Private Participation in SOC, a foreign-invested company providing SOC will be given various types of administrative and financial support to ensure profitability.
Foreign Direct Investment Procedures Foreign Direct Investment
Types and Classifications Foreign entry into Korea for business purposes can be classified into 4 categories, with each category subject to different investment regulations. Private business registration by a foreign company is not permitted.
Foreign Entry into Korea Local Corporation, Private Business, Branch, Office Foreign Investment Promotion Act Foreign Exchange Transaction Act Foreign-invested Corporation Establishment and Procedures There are four key steps required to establish a foreign-invested corporation: Foreign Investment Notification, Remittance of Investment Capital, Registration of Incorporation & Business Registration, and FDI Company Registration. Foreign Investment Notification → Remittance of Investment Capital → Incorporation Registration → Incorporation Notification and Business Registration → Transfer of Paid-in Capital to Corporate Account → FDI Company Registration The procedures applied to foreign investors are identical to those applied to Korean nationals excluding two additional steps: Foreign Investment Notification, and FDI Company Registration. In the case of private business registration, however, the ‘registration of incorporation’ step is not required.
Part 4- Core Seoul City Projects
Hangang Renaissance Project Design City Dongdaemun Design Plaza ln today’s world, a city’s competitiveness determines a nation’s competitiveness. The Seoul Metropolitan Government is committed to making Seoul a clean and attractive global city.
The Han River Renaissance Project The Seoul Metropolitan Government plans to reorganize the urban landscape of the city centering on the Han River as a conceptual waterfront city that combines culture, commerce and leisure. Under the Han River Renaissance Project, the mighty river flowing through the center of Seoul will become the most famous tourist destination in Seoul. By developing the urban areas bordering on the Han River, creating a new ecological system, and maximizing the River’s hidden value, the SMG aims to create an eco-friendly city image. This rebirth of the Han River will encourage tourism from beyond both the city and country limits by strengthening the awareness of riverside historical sites and drawing people of all ages to the theme parks being planned. Seoul – 2010 World Design Capital Seoul was designated as the 2010 World Design Capital at a meeting of the General Assembly of the International Design Association in 2007, recognition on a global scale of the prowess of the city’s design vision. The World Design Capital designation is bestowed upon a city that has effectively used design to develop the urban economy and culture and enhance the quality of life of its citizens. The 2010 marks a period in which Seoul will demonstrate its boundless potential as an international design leader that is certain to guide the city’s future global design vision. Dongdaemun Design Plaza & Park Dongdaemun Stadium, which once served as a showcase for modern sports in Korea, was recently torn down due to its outdated facilities. In its stead, Dongdaemun Design Plaza & Park (DDP) is to be built on the site of the stadium to turn the area into an international Mecca of design. On the basis of “Metonymic Landscape” by the world-renowned UK-based architect Zaha Hadid, the DDP is set for completion by late 2011. It will consist of a multipurpose convention center, an exhibition center, a hands-on interpersonal experience center, a museum and an information education center. Through this plan, a razor-sharp competitive edge is expected to be injected into the design industry of Seoul. The Seoul Metropolitan Government, which has been changing the face of urban landscape through design, strives to provide numerous extraordinary sights and pleasures to foreign investors residing and doing business in Seoul in order to enable them to experience Seoul, a progressive and attractive global city.
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