Incheon Free Economic Zone (IFEZ)

📍 General Introduction

Established in 2003, the Incheon Free Economic Zone (IFEZ) is one of the first free economic zones in South Korea.
It covers an area of approximately 209 square kilometers and is managed by the IFEZ Authority.
The zone aims to become Northeast Asia’s leading hub for business, logistics, technology, and international finance.

🌐 Main Areas

IFEZ consists of three major districts:

1. Songdo International Business District
A model city for high technology, smart urban design, and sustainability.
Home to international schools, global corporate headquarters, and advanced medical centers.
Known as a “U-City” (ubiquitous city) integrating ICT and eco-friendly systems.

2. Yeongjong Island
Centered around Incheon International Airport, it focuses on aviation logistics, tourism, and convention industries.
Planned to develop into an Aerotropolis, combining airport-driven economy and business services.

3. Cheongna International City
Concentrates on finance, culture, and leisure industries.
Features international business districts, entertainment complexes, and high-end residential areas.

💡 Investment Incentives and Policies

Corporate and local tax exemptions for up to 15 years

Long-term land lease discounts

Administrative support and expedited approval process for foreign investors

Excellent residential, educational, and medical facilities for expatriates

🌏 Global Positioning

IFEZ is one of the three major free economic zones promoted by the Korean government,
along with the Busan–Jinhae FEZ and Gwangyang Bay FEZ.
It is positioned as South Korea’s international business hub and smart technology city.

🧭 1. Geographical and Transportation Advantages

Incheon International Airport connects directly to over 190 cities worldwide, making it one of the busiest aviation hubs in Northeast Asia.

Close to Seoul (approximately 30 minutes by car), enabling quick access to the capital region’s markets and government institutions.

Adjacent to Incheon Port, providing a dual sea and air logistics network, ideal for export-oriented industries.

💰 2. Investment Incentives and Tax Benefits

Corporate income tax exemption for 5 years, with 50% reduction for 2 additional years (applicable to foreign investment or high-tech projects).

Local taxes (property tax, registration tax, etc.) can be reduced for up to 15 years.

Land lease discounts and long-term lease options (up to 50 years).

Government subsidies available for investments above certain thresholds, depending on industry and scale.

🏢 3. Complete Industrial Clusters, Suitable for SMEs

Songdo District: smart city, ICT, biotech & healthcare, and start-up business park.

Yeongjong Island: aviation logistics, airport-related industries, tourism, and convention services.

Cheongna District: finance, cultural content, leisure, and creative design industries.

➡️ Suitable for Taiwanese SMEs in technology manufacturing, digital innovation, cultural & creative industries, healthcare, logistics, and food & beverage services.

🌍 4. Foreign Investment Friendly Environment and Administrative Support

A “One-Stop Service Center” assists foreign investors with company registration, visas, residency, taxation, and HR management.

Expatriate employees enjoy convenient housing, international schools, and medical facilities, reducing relocation difficulties.

Government-supported SME international cooperation platforms and Korea–Taiwan business exchange programs are actively promoted by KOTRA and Incheon City.

💡 5. Innovation and R&D Support

IFEZ Smart City platform offers 5G, AI, and IoT testing environments.

Songdo Bio Cluster provides biotech startups with research spaces and laboratory facilities.

Opportunities to collaborate with major Korean corporations (e.g., Samsung, CJ, SK) in supply chains or R&D partnerships.

🌱 6. Stable Policies and International Positioning

The Korean government clearly positions IFEZ as a Northeast Asian hub for international business and technology.

Policies are highly consistent, with IFEZ remaining a core strategic free economic zone until 2030.

Geographically close to China, Japan, and Taiwan, with cultural similarities and low language barriers.

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