Offshore Industries in Busan
Offshore Industrial Environment
Busan City can provide a new market, advanced technology acquisition, production/logistics cost reductions, and an advanced qualify of life to companies investing in Busan
* Global Industrial Logistics Complex(Area: 33km2, Project Cost: Approx 10 billion USD. Project Period: 2009~2020)
Busan, the optimal offshore supply base for the Arctic and the Far East
Accessibility to the Arctic Region
- Access to Natural Resource Fields
- Benefits
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- Industrial Capability
- Highly-educated labor force and leading global offshore plant companies like Hyundai Heavy Industries
- Ice-Free Port
- Ice-free 365 days a year, Busan is the nearest ice-free port in the Far East
- World's 5th Largest Port
- Massive cargo and heavy equipment handling capacity
Accessiblility to Russia's 25 Oil/Gas Fields at Sakhalin and Kamchatka
* West and East Siberia Basins; Source: U.S Geological Survey, IEA Report
Competitiveness of the Korea Institute of Marine Plant Technology
The Korea Institute of Marine Plant Technology, to be completed in 2017, will offer the best environment for integrated technological innovation
Introduction of Business Model: Supply of offshore plant equipment
Busan is optimized for the adoption of a new Business Model, manufacturing core equipment for offshore plants and supplying it to leading global and Korean companies
Conceptual Map of Business Model
Description of BM and Value Proposition
- Description
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Production and delivery of offshore equipment to Korean and other shipbuilding companies
- - Production of high-tech equipment utilizing Korean technology in the shipbuilding and precision machinery fields
- - Quick delivery to leading global and Korean shipbuilding companies
- Value Proposition
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- Market & Tech
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- Working with HHI, SHI and DSME
- Utilization of competitive machinery companies
- Costs
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- Many industrial complexes just 1 hour away
- High-quality diverse labor force
- LME*, ensuring rapid supply of resources
- Logistics
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- Busan Port, ranked globally as Top 5 Port
- Gimhae Airport, the 3rd largest in Korea
- Rapid KTX** rail connections to Seoul
- Quality of Life
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- Myeongji City, a ready-made residential area for foreigners
- Top-notch education/healthcare services
Core Center for Manufacture and Delivery of High-tech Offshore Plant Equipment to Leading Global and Korean Companies
*London Metal Exchange **Korea's High Speed Train network
Offshore Industrial Belt in Busan
Incentives
| Busan Investment Attraction Fund | Amount | - USD180 million |
|---|---|---|
| Target | - Major conglomerates, foreign investment corporations, and large-scale investments | |
| use | - Long-term and price leases - Cash grants and low-interest loans |
|
| Cash Grants | Employee Training Grants | - Amount: up to KRW500,000 per month for each employee when hiring 20 or more new - Limit: KRW200 million in total - Period: up to 6 months |
| Subsidies for Consulting | - Amount: up to 30% of consulting fees (accounting, legal, etc.) - Limit: KRW20 million in total - Period: up to 6 months |
|
| Subsidies for Land Purchase and/or Rental Fees | Purchase | - Subsidies of up to 30% of the purchase price |
| Exemption from Rental Fees | - High-tech businesses investing USD 1 million or more: 100% - Businesses located in the FLZ: 100% - Manufacturing businesses investing USD 5 million or more: 50-70% |
|
| Subsidies | -Rent subsidies are available and awarded based on the positive economic impact of the foreign investment | |
| Tax Exemption/Reduction | Corporate Tax/Income Tax | - First 3 years: 100%, Next 2 Years: 50% |
| Local Tax(Acquisition Tax, Registration Tax, Property Tax) | - Acquisition/Registration Tax: 100% - Property Tax: First 7 years: 100%, next 3 years: 50% |
|
| Tariffs | -FTZ: Tax-free -FTZ: 3 years exemption for capital goods |
