Investors in Sejong City to get cheap land, tax incentives

By Shim Sun-ah
SEOUL, Jan. 5 (Yonhap) -- Companies, colleges and universities that move into a
new city to be created in the central part of the country will be provided with
cheap land, tax incentives and subsidies by the government, the prime minister's
office said Tuesday.

The decision, aimed to encourage more relocation of such entities, was made in
the 7th meeting of a government-civilian committee in charge of devising the
revision, the prime minister's office said in a statement.
The administration of the former President Roh Moo-hyun decided to relocate nine
ministries and four subsidiary agencies out of Seoul by 2012 for balanced
regional development. But President Lee Myung-bak is seeking to change the
envisioned Sejong administrative city to a "science-business town," a revision
from his predecessor's plan, saying the relocation would be tantamount to
creating two capital cities in one country.
Prime Minister Chung Un-chan, who co-chairs the committee, is expected to report
the draft blueprint to Lee Wednesday and announce the final plan around next
Monday if approved by the president.
The site for Sejong city is located about 130 kilometers south of Seoul, in South
Chungcheong Province.
Under the incentive package, the office said, large enterprises, colleges and
universities moving into Sejong City will be provided with land at prices about
400,000 won (US$349) per 3.3 square meters -- lower than the average land cost in
adjacent industrial complex areas.
The government is considering subsidizing part of the construction costs for
national universities relocating to the new city, the office said.
Firms moving from Seoul metropolitan area will get extra benefits such as
government subsidies for investment, employment and training, it said.
Foreign-invested firms will be given a choice between the subsidies and cash
rewards.
New companies to operate there will get a 100-percent cut in their income and
corporate taxes for the first three years and a 50-percent cut in the next two
years. Their acquisition, registration and property taxes will be exempted for
the first 15 years, officials said.
The draft revision to be reported to President Lee will include a list of firms
that have expressed their intention to move into the new city, they said.
sshim@yna.co.kr
(END)

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