Korea’s key aspiration of providing a world-class centre for the development and commercialisation of business and industrial concepts and solutions is supremely represented by its commitment to the development of the Daedeok Valley. International companies gravitate there in large numbers to take advantage of Korea’s quality workforce, superb amenities and appropriate funding and incentive programmes. They also gain access to some of Asia’s fastest growing and most dynamic markets.

Located in the Daejeon area, the Daedeok Valley is a Mecca for global companies seeking high technology excellence. There they find the Daedeok R&D Special Zone, a foreign investment zone, the foreigners’ high tech R&D centre and a bonded area. Invest KOREA, a government-run programme for project managers, supports the entire investment process, from consultation to starting a business. Investors can also ask Invest KOREA for advice about living conditions in South Korea.


Human resources

Human resources are at the core of the Daejeon package. About 22,000 people work in the research centres of the Daedeok Science Town, drawn from Korea’s top universities, such as the Korea Advanced Institute of Science and Technology, Information and Communications University and Chungnam National University.

Cutting edge

Infrastructure is also critical to such an ambitious project. So the international investor will find an industrial cluster for technological development, procurement of parts, exchange of human resources and information and marketing. The technology accumulated during 30 years by the 250 institutes, including the Electronics and Telecommunications Research Institute in the Daedeok Science Town, and the technology of the 800 venture companies currently in the Daedeok Valley have created a network consisting of the 3rd and 4th Industrial Complexes, National Government Camplex in Daejeon, EXPO Science Park and Daedeok Valley. The Daedeok area will be designated the Daedeok R&D Special Zone in 2005, a scheme that is intended to foster commercialisation of research results from the Daedeok Science Town and, in due course, national competitiveness.

Three goals to success

Daedeok R&D Special Zone has three goals:

  • To assist technological development in the research institutes and so enhance competitiveness. In due course, this will create a positive and profitable environment for business.


  • To increase support for researchers and increase the scope for commercialisation of research.


  • To increase international recognition of the special zone and bring more research and research-related institutes to the area. In time, this will create more jobs and attract skilled and talented minds.

Support available

International corporations and R&D centres entering the R&D Special Zone will receive the following forms of support:

  • Corporations in high tech, industrial support, R&D facilities, certain manufacturing, distribution and tourism sectors will receive special tax exemptions.


  • Foreign corporation and R&D facilities will receive leasing fee exemptions for land. They will also receive financial support for the establishment of medical facilities, educational facilities, residences and other amenities for foreigners.


  • An international school will be established alongside international clinics and pharmacies to improve living conditions for foreigners.

Investment zone

A foreign investment zone will be created in the Daedeok Techno Valley to host international corporations. This will be located in the south-eastern part of the valley and will cover 330,000 square metres. The zone will be divided into a number of areas, including R&D, testing and production, promotion and exhibition, support facilities and parks. The area is five minutes from the highway and about 15 minutes from the railway station.

The foreign investment district is an industrial complex concentrating on R&D, and the information technology and biotechnology industries. Advanced information and science, research of core future industries, production, distribution and support facilities are located there. Companies involved in electronics, information and communication, high precision equipment, new materials, bio-engineering, optical and medical equipment and information and services are also based there.

Support facilities

The area, which covers 4.3m square metres and has a population of 33,000, will be equipped with industrial, residential, commercial and leisure facilities. Because it is located in the Daedeok Techno Valley, the complex will be a self-sufficient, state-of-the-art venture complex where high-tech industries, residential facilities and the business environment develop together.

An information exchange centre and permanent techno-mart will support the venture. Plans have been developed to construct a high-frequency parts support centre, an intelligent robot industrialisation centre and a nano-technology utilisation centre.

The Daejeon Customs was recently relocated in the special zone to facilitate companies’ importing and exporting activities. The special zone will include an area designated a bonded area.


Daejeon is easily reached from anywhere in Korea. It is 30 minutes’ drive from Cheongju International Airport, two-and-a-half hours from Incheon International Airport and one hour from the west coast port of Dangjin. It is also accessible by expressway and railway, and is a triangular logistics base connecting Seoul, Yeongnam and Honam regions. By high-speed train, it is 50 minutes from Seoul.

Roads and parks

Connecting roads out of the complex will be maintained for easy access to highways and the centre of the city. Nine children’s parks will be created with green areas and the district will contain five elementary schools, three middle schools, three high schools and an international school.


For more information, contact:

1420, Dunsan-dong, Seo-gu, Daejeon, Korea, 302-789

International Affairs and Trade Division, Daejeon Metropolitan City

Tel: +82-42-600-3681

Fax : +82-42-222-0262



Reduction of and exemption from leasing fees

Investors that meet the conditions for setting up in the foreign investment zone, corporations entering the zone with investments of more than $1m, and corporations in the high-tech and industrial support services sectors will receive leases for plant sites and 100% exemption from leasing fees. A 75% leasing exemption is provided for companies in the manufacturing sector investing more than $5m. The leasing period is 50 years and can be renewed.


Reduction of and exemption from taxes

The high-tech and industrial support industries and products and services provided in the foreign investment zone will receive the following exemptions:

  • Taxes will be 100% exempted for five years beginning in the fiscal year that profits occur. National taxes will be 50% exempted for the subsequent two years and local taxes will be 100% exempted for the seven subsequent years and 50% for the following three years.


  • Customs, special consumption taxes and value-added taxes on capital goods of the industries that qualify for exemption will be exempted.


  • A single income tax rate of 17% will be applied to foreign employees.


Financial support

Cash support will be provided, based on the amount of the investment. Companies will qualify for support if they invest more than $10m in either the high-tech industries, industrial support industries or parts and materials industries. Companies that provide R&D facilities will qualify if they invest more than $5m.


Other subsidies and support funds

Support is available for training and employment when they provide jobs for defined numbers of local residents. Foreign companies are eligible to receive financial support equivalent to that of domestic companies, when they fulfil the regulations of the Small and Medium-sized Enterprise Fund.