Home About Daegu eTrade

Overview Daegu eTrade

Location, Population & Area

  • Location : Southeastern part of the Korean Peninsula 293 km away from the capital, Seoul 80 km away from the southeast coast
  • Population : 2.53 million (5.3% of the Korean population) with 15,000 international residents.
  • Area : 885.5 km2 with 7 self-governing districts and 1 county.

It has been a center for education, administration and culture for centuries.
Currently, the city is focusing on its post-industrial economic future which is cultural industry core of :

  1. Cultural Content Development (Game Design, Animation, Mobile Phone Contents, TV, Films)
  2. Entertainment (Festivals, Performance, Theme Parks)
  3. Conventions
  4. Logistics and Distribution
  5. E. Sports and Leisure

Geography

  • Location : 35° 36'~ 36° 01'. Lat. 128° 21'~ 128° 46' E. Lon.
  • Elevation : 40.69m above sea level

Climate(1973 ~ 2003)

  • Annual Average Temperature: 13.8°C
  • Annual Average Rainfall: 1,106.9mm

Industry

  • Industrial Structure (as of 2009) : primary industry - 2.3%
    secondary industry - 18%
    tertiary industry - 79.4%(as of 2009)
  • GRDP : 29.2 billion USD(as of 2008)
  • Trade : Export - 38.9 billion USD; import - 21.7 billion USD (as of 2009)
  • No. of industrial complexes : nine including Seongseo Industrial Complex and Dalseong Industrial Complex

Investment Attractions

  1. Southeastern Hub of the Techno-belt

    Daegu is situated in the center of the southeastern industrial regions such as Gumi (electronics), Pohang (steel), Ulsan (automobile & shipbuilding), Changwon (machinery),and Masan (free trade). It will play a significant role as a central city of the southeastern economic block of the nation in the Pan-Asian & Pacific Age in the future.

  2. Hub of Inland Transportation

    7 Highways : Gyeongbu, Guma, 88, Jungang, and Daegu-Pohang Daegu-Busan and Gumi-Hyeongpung (under construction).

    2 railways : Gyeongbu and Jungang Lines

    Korean Train Express (KTX) : Daegu ~ Seoul, 99 min.

    4 ports within a one hour or so drive : Busan, Pohang, Ulsan and Masan ports

    Int'l flights : 7 routes, 23 times a week

  1. Trade & Distribution Hub

    Merchandise Distribution Complex (838,000m2 ) : This complex, the largest of its kind in the nation, acts as an outpost to the global community in the 21st century.

    Daegu Exhibition & Convention Center (EXCO) (10,377m2 ) : It is a world-class exhibition and convention facility where international business, shopping and conferences can be held simultaneously under one roof.

  2. City with Great Potential

    Abundant excellent human resources from 27 local colleges A center of the southeast part of the nation, geographically and functionally Good environment for settlement being a city of education and an environment-friendly city An international city which successfully hosted the 2002 FIFA World cup and 2003 Summer Universiade

Future Projects

Aiming at being a Science & Technology Hub in the Southeast Area

  1. "Daegu Technopolis" A R & D center and institute complex
  2. "Daegu-Gyeongbuk Institute of Science and Technology" A R & D Center" Knowledge-based industry R&D organization
  3. "Herb & Bio Industry" with a 350-year-old history
  4. "Culture Industry Cluster" High-tech future industry project
  5. Knowledge-based new industry (Nano-parts industry, mobile-phone industry, etc.)

International-level Investment Environment

  1. International School: Capacity of 300 students, project budget US$6.7 million, Project size (area 13,200m2 ,)
  2. Foreign Investment Zone at Dalseong 2nd Industrial Complex : 264,464 designated area in the Dalseong 2nd Industrial Complex
  3. Free rent for 50 years for high-tech industrial companies investing over US$1 million
  4. Providing up to 50% of land purchase price Providing Competitively Priced Industrial Land

Providing Competitively Priced Industrial Land

  1. Dalseong 2nd Industrial Complex: Seongseo 4th Industrial Complex Support Facility
  2. Seongseo High-tech Industrial Park (Samsung Motor Site) for high-tech industrial companies
  3. 4th Seongseo Industrial Complex: 398,732 m2

Foreign Investment Support System

Optimum Investment support SystemEligible company: a company whose primary shareholder is a foreign national, or over 30% is foreign capital out of the total amount invested

  1. Subsidizing Land Purchase Price

    Subsidizing land purchase price: up to 50% of land purchase price
    50% by individual company, 37.5% by central government, 12.5% by municipal government

  2. Subsidizing Land Rent

    (Government purchases land for factory and leases it to foreign-invested company)
    Rent: approx. 1% of land purchase price per year
    Rent period: up to 50 years (extendable)
    Rent exemption
    100%: high-tech industry investing more than US$ 1 million in Foreign Investment Zone
    75%: manufacturing company investing more than US$ 5 million in Foreign Investment Zone
    50%: company in national/local industrial complex

  3. Education & Training Subsidy

    A job training subsidy will be provided in case of hiring more than 20 employees - monthly subsidy of US$ 500 per capita for 6 months

  4. Employment Subsidy

    An employment subsidy will be provided when a foreign-invested company hires more than 20 new employees monthly subsidy of US$ 500 for each person exceeding 20 persons for 6 months

  5. Subsidizing Consulting Fee

    When a company confirms a new (or additional) investment after a feasibility study, up to 50% of the consulting fee (within KRW 500 million) will be provided.

  6. Tax support

    Eligible industry or company: company in Foreign Investment Zone, industry support service, advanced technology industry - National tax (corporate tax, income tax): 100% exemption for first 5 years, 50% for next 2 years - Local tax (acquisition tax, registration tax, property tax): 100% exemption for first 10 years, 50% for next 3 years

  7. Cash Grant

    Eligible company: A company of industrial support service industry, high-tech industry, and parts & materials industry of more than US$10 million investment, which newly builds or expands its plant
    Subsidy rate & method: negotiable within 5~20%
    Duplicated support/subsidy is not allowable: Cash subsidy will be offered starting the year after deciding the rate of subsidy in a lump sum or in 5-year installments
    Cash usage: land sale/rent, construction, purchase of machinery/equipment, infra-facility expenses, subsidy for education, training or employment

Train

After the opening of the “Korea Train eXpress” (KTX),
a highspeed train, on April 1, 2004, a population inflow of 12 million is from Seoul and other parts of Korea.

Airport

Daegu International Airport (DIA) has been recently restructured with state-of-the-artfacilities including an auxiliary hotel.
DIA operates domestic flights between Daegu and Seoul 4 times a day, and between Daegu and Jeju 9 times a day.
The airport also serves direct international flights to Qingdao, Yantai, Shanghai, Shenyang, Bangkok, Beijing, and Manila.