The Ministry of Trade, Industry and Resources said on the 20th that, starting in May next year, corporations that have moved into free trade zones will be allowed to own land. Although related laws exist, the lack of specified procedures had effectively made it impossible until now. Under the Free Trade Zone Act, free trade zones guarantee free manufacturing, logistics, and trade activities to expand exports and logistics and attract foreign investment, and 14 locations nationwide have been designated, including Masan, Gunsan, Daebu (Yeongam), Incheon Airport, and Pyeongtaek-Dangjin Port.
The Ministry of Trade and Industry (MOTI) prepared sales procedures and conditions, including the sale price and sale targets, for factories on state-owned land within free trade zones. The government expects investment to pick up with this easing of regulations. Without land ownership, there is no collateral, making it difficult to secure loans and creating constraints on new investment by corporations. To prevent purchases for real estate speculation, it established a clause limiting the disposal period to 10 years. It also presented post-management measures that impose compliance fines in cases of violations such as failing to sign a move-in contract or disposing of assets without authorization.
To support tenant corporations' digital transformation (DX) and attract high value-added corporations, it decided to grant move-in eligibility to export corporations in knowledge service fields such as information processing and research and development. Since the system was introduced in 1970, free trade zones have been operated with a focus on manufacturing. Considering that corporations related to knowledge services do not need large-scale factories, it allowed exceptions to the standard building coverage ratio (the ratio of the area of structures, etc., to the project site area) and strengthened tax benefits.