"Export Startup Companies, Come to Free Trade Zones"…Eased Entry Requirements for Recruitment

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The Ministry of Trade, Industry and Energy announced on the 18th that it will relax the entry conditions for free trade zones for startup companies and recruit resident companies.

Originally, free trade zones are economic special zones to support exports, and entry is possible only if certain conditions such as export ratio are met. However, startups aiming for exports will be allowed to enter on the condition that they meet the entry requirements within 5 years after moving in.

To this end, support systems were established in August last year and related regulations were revised. From this month, recruitment of resident companies targeting startups will be announced in seven free trade zones.

Currently, startup support is mainly focused on funding and technology development, so startups in the full-scale production stage after technology development are facing difficulties securing production sites or buildings.

To solve this entry difficulty, it was decided to utilize free trade zones that provide locations at about 15-30% of surrounding rental prices.

Entry will be allowed on the condition that manufacturing startups established within 7 years and those related to knowledge service industries meet the entry requirements within 5 years after moving in.

Buildings or sites for production activities will be provided at low rental rates, and the innovation capabilities of companies will be strengthened through support programs such as export and commercialization.

An Seong-il, head of the Economic Free Zone Planning Division at the Ministry of Trade, Industry and Energy, said, "Due to the recent spread of COVID-19, investment as well as domestic demand has shrunk and exports are difficult. We will continue to make efforts so that free trade zones can contribute to turning Korea's exports positive."

The recruitment announcement for resident companies targeting startups can be found on the websites of the seven free trade zones. Resident companies will be selected through a review by an evaluation committee held separately for each free trade zone.

This content was produced with the assistance of AI translation services.