Lease term
Lease term : 50years (Article 17(3) of 'Act on designation and management of Free Trade Zones')
Rent
- "Rent for Government-Owned Land and Building within Port Free Trade Zone" announced and revised every 3 years by the Ministry of Oceans and Fisheries shall be applied.
- The rent shall be imposed at the beginning of the lease term and paid annually in advance.
"Rent for Government-Owned Land and Building within Port Free Trade Zone"
| Qualifications | Leasing fee | Applied period | ||
|---|---|---|---|---|
| Standard rent |
The companies running the businesses stipulated in Article 10(10) of the 「Act on designation and management of free trade zones」 | KRW145/㎡ | '23.1.1~ 24.12.31 |
|
| Favored rent | The companies running the businesses stipulated in Article 10(1)5 of the 「Act on designation and management of free trade zones | KRW258/㎡ | ||
| Official land price leasing fee | The companies which failed to execute the business plans which were agreed between concerned parties. | Officially assessed land price ×50/1,000 (1 year, State Property Law) |
||
| Leasing fee reduction | If the amount of foreign investment is USD 5 million or more | 50% for 3 years | each period | |
| If the amount of foreign investment is USD 10 million or more | 50% for 5 years | |||
Security deposits
- Security deposit for lease contract (leasing fee, maintenance cost of public facilities, warrant for nonpayment of rent)
- The amount of security deposit for lease contract = land size leased(㎡) x KR4,000
- Payment period : within 30 days after the date of signing of the lease contract
- Terms of the security deposit for lease contract : until 90 days after the last date of the lease contract
- Security deposit for contract performance (To guarantee the performance of business plans of tenants)
- The amount of security deposit for contract performance : 5% of the total construction cost
- Payment date : the date of signing of the lease contract
- Terms of the security deposit for contract performance : until 30 days after the last date of the lease contract
* Return of the security deposit for contract performance : in 30 days after the beginning date of business (date of completion)
- Payment of security deposit for contract performance : the deposit can be paid by cash, or government or municipal bond, or policy of security bond for performance or payment guarantee policy issued by financial institutions.
Maintenance cost of public facilities
- Tenants should pay for the maintenance cost of public facilities
Maintenance cost of public facilities is KRW25/㎡ on monthly basis (2016) and subject to change every year by 'Operation Council of FTZ tenants'
- Facilities owned by tenants
Upon the expiration of the lease term, the ownership of tenants-owned facilities shall be transferred the Republic of Korea government for free, or, the leased land shall be requested to be restored to the original state.
- Details of terms and conditions of the lease contract are to be decided through the negotiation between concerned parties after the selection of the tenants and gaining of the FTZ move-in permission.
