hankyoreh

South Korea said Monday it designated three additional special regions for foreign direct investment (FDI) in an effort to revive sagging overseas companies' interest in the country.

Foreign companies investing in Yeosu and parts of Osong and Gumi will be exempt from rent and corporate taxes for five to seven years, and regional governments will offer additional tax benefits, the Ministry of Commerce, Industry and Energy said.

According to the ministry, the Yeosu zone on the south coast has secured a US$200 million deal to build a marine recreational resort. Yeosu will host the 2012 World Exposition.

Osong, about 130 kilometers south of Seoul, was named an FDI zone because it has signed contracts with four U.S. and Canadian companies that planned to invest a total of $190 million into biotech, nanotechnology, environmental materials and pharmaceuticals.

Gumi, an industrial city about 260 kilometers south of Seoul, has won eight contracts from Japanese manufacturers and U.S. and French electronics companies worth $10 million to $50 million each.

The designations come amid a plunge in FDI in South Korea. In the first half of this year, FDI in the country tumbled 31.6 percent from a year ago to $3.36 billion.

A ministry official said the designations are likely to help South Korea attract more foreign investment.
SEOUL, July 16 (Yonhap News)