Project Overview

• Location / Area : Dagu Innovation City, Sinseo-dong, Dong-gu, Daegu City / 1,087,000㎡ (Daegu Innovation City 4,216,000㎡)
• Period : 2011~2015(Phase 1)
• Business : Building a medical R&D hub and developing a global medical industry ecosystem
  • To build a medical hub as the core region that supports the development strategies of Daegu City to become the Medi-City in connection with the Medivalley.
  • To develop a global medical industry ecosystem by producing medical facilities and new drugs in connection with research centers in the Medivalley and regional medical colleges.
  • Create synergy of IT convergence technology projects in connection with the medical R&D zone and Meidvalley.

Background

• Apr. 03, ’10 : Applied for the designation of Innopolis (Daegu City Mayor)
• Jan. 18, ’11 : Established the 2nd comprehensive plan (2011-2015) to develop the zone (Ministry of Trade, Industry & Energy)
• Jan. 24, ’11 : Announced the designation of the medical R&D zone
• Mar. 02, ’11 : Established Daegu Technology Commercialization Center
• Feb. ’12 : Revised the Ordinance of tax reduction for tenants in the special zone (Acquisition Tax)
• Mar. ’12 : Revised the Ordinance of tax reduction for tenants in the special zone (Property Tax)
• Jun. ’12 : Announcement of the 1st sales of medical R&D cluster land (LH)
• Nov. ’12 : Announcement of the 2nd sales of medical R&D cluster land (LH)

Land by Sectors

(Unit: ㎡, %)

Future Plans for Sales

• Land for sales : 107,649㎡ (Total area 345,989, Sales completed 238,340)
  ※As of Jun. 30, 2014 Possible to parcel out the land into an optimal size (minimum 1,650㎡)
• Price : 596,838 won/㎡(1,973,017 won/3.3㎡)
  ※Reference price of plant land of industrial zone in Daegu: Seongseo Industrial Complex KRW 3~5 million /3.3㎡
• Period : Jun. 29, 2012 ~
  ※ Application on a rolling basis
• Target : The following sectors under the Korean Standard Industrial Classification
  • 211.basic pharmaceutical products and biological manufacturing. 212. Medical products manufacturing, 213. Medical supplies and other medical related products manufacturing
  • 271.medical equipment manufacturing
• Limitation of tenants : If a tenant follows the research and development special zone management plan (Notification No. 2011-82 of the Ministry of Industry, Trade & Energy) and falls under one of the below of the Asterisk 4.2 of the Enforcement Ordinance of the planning and managing of the restricted sectors Act:
  • If the tenant emits specific air pollutants under Article 2.9 of the Clean Air Conservation Act.
    (Ex: cadmium, hydrogen cyanide, lead, polychlorobiphenyl, chrome, arsenic, mercury and other chemical compounds.)
  • If the tenant is a facility that emits air pollutants under Article 2.11 of the Clean Air Conservation Act. Or if the tenant is either type 1 or 4 place of business in accordance with Asterisk 8 of the Enforcement Ordinance of the Act.
    (Ex: textile products, leather/fur/shoes, pulps/paper products and manufacturing facility for cokes)
  • If the tenant emits specific air pollutants stated in Article 2.8 of the Water Quality and Aquatic Ecosystem Conservation Act. However, a tenant that operates a non-discharge wastewater treatment facility under Article 34 of the Act will be exempted.
    (Ex: Copper/lead/arsenic/mercury and other chemical compounds)
  • If the tenant is a wastewater discharge facility under Article 2. 10 of the Water Quality and Aquatic Ecosystem Conservation Act and falls under from type 1 to 4 place of business in accordance with Asterisk 13 of the Enforcement Ordinance of the Act.
    (Ex: mining facilities for coal/metal/nonmetallic mineral and processing, storage and treatment facilities of livestock, meat and fisheries products)
  • If the tenant emits designated waste in accordance with Article 2.4 of the Wastes Control Act.
    (Ex: highly polymerized compounds including waste synthetic resins/rubber, agricultural waste pesticides, corrosive wastes etc.)
  • If the emission standard is more than double in accordance with Article 7 of the Noise and Vibration Control Act.
    (Ex: compressor of more than 10 HP, centrifuge of more than 20 HP, mixer of more than 50 HP etc.)
    ※The moving in of some sectors may be restricted due to the changes of the research and development special zone management plan.
  • Sales and move-in procedure
    
    

    

Incentives

Tax Support
(※when a high-tech company is designated.)

• National tax : Corporate tax - 100% exemption for the first three years and 50 percent exemption for the next two years
• Local tax
  • Real estate : exempt acquisition tax
  • Property tax : 100 percent exemption for the first seven years and 50 percent exemption for the next three years
• Beneficiary : High-tech companies, laboratory enterprises
• Requirements
  • Hold patents at home and abroad for advanced technology and state-of-the-art products
  • Produce and sell products with the patents and move into the special zone
  • R&D accounts for more than 5 percent of the total annual sales
  • The sales of products made with patents produced and sold account for more than 30 percent of the total annual sales
• Related laws
  • Article 12.2 of the Restriction of Special Taxation Act
  • Article 12 of the Ordinance on Daegu City Tax Reduction
  • Article 10 of the Ordinance of Daegu City’s Dong-gu Tax Reduction

Financial support

• Subsidies for the regional investment promotion : maximum KRW 6 billion for newly established companies and transferred companies
• Subsidies for location and investment : maximum KRW 1 billion
• Special subsidies for large-scale domestic and foreign investment companies : within 50 percent of the total investment
• Subsidies for employment and training : no more than KRW 500,000 per person and within 6 months

Land purchase support

• Payment in installment for five years free-of-interest or offer discount (12.37 percent) for payment all at once.
• Potential tenants are eligible for long-term rent (5~50 years, 95,965㎡) - Annual rent price: 3 percent of the sale price
  ※Conversion of rental housing for sale is possible after five years of mandatory period.

Administrative support

• Provide one-stop service of approval and permission from sales to move-in.
• Designate a public servant who manages from consulting to research and development.