Designated as Korea's first free economic zone in 2003, IFEZ has been the focal point of the government's strategies to become the Northeast Asian economic hub. It covers a total area of 122.34 square kilometers including Songdo, Yeongjong, and Cheongna International Cities, as well as the Incheon International Airport and Port.
Incheon is the starting point of Korea's west coast, the axis of land development and economic/industrial development. It serves as a gateway to Seoul and the metropolitan region, home to 23 million people. Located just 8km away from downtown Incheon, and about 50km from central Seoul, the Incheon Free Economic Zone is adjacent to the Incheon Port and can easily be accessed to major metropolitan areas only 60-90 minutes away.
Industries & Activities:
- Logistics and international trade (supported by Incheon International Airport and Incheon Port)
- Finance, biotechnology, IT, medical services
- Education (Songdo Global University campus)
- International business and tourism
Special investment benefits unique to the Incheon Free Economic Zone
- Tax reduction
- Management Activities Support
- Support for the Living Conditions of Foreigners
- Regulation and burden relief
- Simplified administrative procedures
- Investor Immigration System
- Foreign Tax Incentives
Tax reduction incentives are provided when foreign investors invest in free economic zones and meet certain requirements as stipulated in the tax incentive systems of the Tax Exemption Restriction Act.
Foreign investors in the Incheon Free Economic Zone (IFEZ) benefit from several incentives, including tax exemptions and streamlined procedures. They can enjoy tariff exemptions on imported capital goods within the first five years. Additionally, foreign investors are eligible for full (100%) reduction of acquisition taxes for 15 years and property tax reductions for up to 13 years, with the first 10 years fully exempted and a 50% reduction for the next three years. These benefits aim to attract foreign investment by reducing operational costs and simplifying administrative processes, fostering a favorable environment for international businesses.
Sources :
www.ifez.go.kr/world/main.do
www.incheon.go.kr/en/EN040312
Last Update : Thursday, 9th November, 2025