Tax incentives for FDI in Korea have been extended after the financial crisis of 1997. With the newly implemented tax incentives, foreign investors have been able to reduce the tax burden of their Korean business activities. However, not all foreign investors receive the same level of tax benefits. (The rest is omitted.)

Executive Summary

I. Introduction

II. Tax Incentives for Foreign Direct Investment in Korea
A. Legal Sources of Tax Incentives for FDI in Korea
B. Contents of Tax Incentives for FDI in Korea

III. Who Gains Benefits from Tax Incentives for FDI in Korea?
A. Greenfield or M&A Investments?
B. Tax Treaty Beneficiary or Not?
C. Investment through Permanent Establishment or Not?
D. Double Taxation Relief on Dividends: Exemption or Foreign Tax Credit?
E. Tax Sparing System Beneficiary or Not?

IV. Conclusions
A. Tax Strategies for Foreign Investors
B. Policy Implications for the Korean Government

References