Busan Metropolitan City

Search
About
Busan
City
Government
Culture
& Tourism
Transportation
Business
Residents
Help

Business

Offshore Industries

Business > Offshore Industries

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

Offshore Industrial Environment

* 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
Accessibility to the Arctic Region Benefits - 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)
Accessibility to Russia's 25 Oil/Gas Fields at Sakhalin and Kamchatka
Accessibility to Russia's 25 Oil/Gas Fields at Sakhalin and Kamchatka photo
* 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

Competitiveness of the Korea Institute of Marine Plant Technology

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
Conceptual Map of Business Model
Description of BM and Value Proposition
Description of BM and Value Proposition

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

Production and delivery of offshore equipment to Korean and other shipbuilding companies

Offshore Industrial Belt in Busan

Incentives

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