The Investment Environments of Major Asian Countries

The Investment Environments of Major Asian Countries
The Investment Environments of

Major Asian Countries
Summary
◦ This book compares the business investment environment of six major Asian
countries, namely China(Beijing), Hong Kong, Korea, Malaysia, Singapore and
Taiwan. To that end, on-site research by KOTRA's overseas KBCs (Korea Business
Centers) and surveys by potential foreign investors on investment attractiveness was
conducted to explore the investment environments of the six countries.
◦ Korea possesses excellent human resources and business infrastructures, technological

maturity, and an innovation-oriented environment. Korea is also ranked higher than
average among the target countries in terms of its protection of intellectual property
rights, levels of taxation, logistics environment, and business location costs. As such,
Korea constitutes a good investment environment. However, Korea is lagging behind
its Asian neighbors with regard to management-labor relations and the command of
foreign languages.
◦ In the survey conducted on the investment attractiveness of major Asian countries,

which targeted 261 foreign-invested companies, Korea ranked either first or second
in 10 out of 18 categories. In terms of the total score, Korea ranked second after Singapore,
suggesting that foreign investors consider Korea an attractive investment location.
◦ Singapore is excellent in terms of its labor-management relations, taxation conditions,

protection of intellectual property rights, logistics environment, and procedure for
establishing corporations. Singapore, despite high prices and expensive location and
labor costs, earns high praise from foreign investors. Singapore offers great
convenience to foreigners in terms of its medical services, transportation system,
educational facilities for foreigners, development of communication systems, and the
public's overall command of foreign languages. Furthermore, Singapore implements
a flexible, effective investment incentive system, making it all the more attractive to
foreign investors.
Summary
◦ Hong Kong offers foreign corporations such attractions as the lowest tax rate of the
countries concerned, a free financial transaction system, and the geographical
advantage of its close proximity to China. It also offers convenient daily living
environments. However, of the six countries, it suffers from the most expensive
location costs and the most expensive residential costs, which together constitute a
great weakness.
◦ Taiwan is similar to Korea in certain categories, including the business and

residential environments, but is more competitive than Korea in terms of labor costs,
labor management conditions, and the logistics environment. However, Korea offers
lower corporate tax rates, lower location costs, and lower residential costs than
Taiwan. Korea is 27 places higher than Taiwan in the "Doing Business" category,
having improved various sets of regulations including the regulations on corporate
establishment. As such, Korea is a little superior to Taiwan in terms of the overall
business environment.
◦ Malaysia is one of the more developed countries among Southeast Asian countries,
boasts competitive location and labor costs, and offers good spoken English, making
it favorable for foreign investment. However, its public transportation systems and
other infrastructures are still inferior to those of more developed countries, and its
manpower competitiveness is weak.
◦ China (Beijing) is superior in terms of location and labor costs, and is competitive in
terms of the capability and supply of its human resources. However, the protection
of intellectual property rights is weak, and its public transportation systems, Internet
penetration level, and other infrastructures remain at the levels encountered in
developing countries. Also, China is lagging behind in the reform of various
regulations and systems and remains among the lowest-ranked countries on diverse
international indices, making its investment environment less competitive compared
to other countries. However, it constitutes a large domestic market, and is striving to
create a more favorable investment environment such as rearrangement of corporate
tax rates.

Contents
Ⅰ. Introduction / 3
Ⅱ. The Investment Environments of Korea and Its Asian Competitors / 7
7 1. Korea
7 ▪Business Environment
7 (1) Location Conditions
10 (2) Labor Management
13 (3) Taxation Conditions
15 (4) Protection of Intellectual Property Rights
16 (5) Logistics Environment
18 (6) Public Services
19 (7) Establishment of Corporations and Acquisition of Realty
21 ▪Living Environment
21 (1) Residential Conditions
22 (2) Medical Service System
24 (3) Convenience of Transportation
25 (4) Education Facilities for Foreigners
27 (5) Development of Communication Systems
27 ▪Investment System
27 (1) Investment Law
29 (2) Investment Promotion Agency
30 (3) Major Investment Incentives
34 2. Taiwan
Contents
54 3. Malaysia
71 4. Singapore

90 5. China (Beijing)
Contents
110 6. Hong Kong
Ⅲ. Comparison of the Six Asian Countries by Factor / 133
Ⅳ. Investment Attractiveness Survey of Major Asian

Countries / 145
146 1. Results by Factor
151 2. Comprehensive Comparison by Country
Ⅴ. Conclusion / 157
Comparison of Major Factors / 159
References / 164

Ⅰ
Introduction
I Introduction
◦ Korea is locked in a fierce competition with other Asian countries to promote foreign
investment. Its major rivals include China, Hong Kong, Malaysia, Singapore, and
Taiwan.
◦ These six Asian countries (including Korea) are vigorously pushing to promote foreign
investment in order to advance the development of their industries and economies.
◦ According to the 2009 IMD World Competitiveness Index, Hong Kong ranked second
among 57 countries, making it the most competitive country of the six Asian
countries. Singapore ranked third, Malaysia 18th, China 20th, Taiwan 23rd, and Korea
27th.
<World Competitiveness Ranking of the Six Countries>
Overall Economic Government Corporate

Country Infrastructures
Competitiveness Achievement Efficiency Efficiency
South Korea 27 45 36 29 20
Taiwan 23 27 18 22 23
Malaysia 18 9 19 13 26
Singapore 3 8 1 4 8
China 20 2 15 37 32
Hong Kong 2 3 2 1 19
◦ However, the IMD world competitiveness standings do not reflect the specific
strengths and weaknesses of their investment environments, thus making them
unsuitable for an effective comparison or assessment of each individual country's
investment environment.
◦ This book categorizes the six Asian countries' investment environments into business
environment; living environment; and investment systems; and then compares them in
an effort to identify the strengths and weaknesses of Korea's investment environment.
I. Introduction 3
◦ First, business environment encompasses location conditions, labor-management
relations, taxation conditions, the protection of intellectual property rights, logistics
environment, public services, and the establishment of corporations and the acquisition
of realty. Second, living environment encompasses residential conditions, medical
service systems, the convenience of transportation, education facilities for foreigners,
and the development of communication systems. Finally, investment system concerns
the investment laws, investment promotion agencies and major investment incentives.
◦ In the case of China, which is subject to vast regional differences, Beijing, the
country's capital, is compared with the other Asian countries.
4 The Investment Environments of Major Asian Countries

Ⅱ

Korea and Its Asian Competitors
1. Korea
2. Taiwan
3. Malaysia
4. Singapore
5. China (Beijing)
6. Hong Kong
II The Investment Environments of Korea and Its Asian Competitors
1 KOREA
Business Environment
(1) Location Conditions
□ Investment Conditions and Costs for Foreign Companies
- The government provides free or low-cost industrial complexes exclusively for

foreign-invested companiess according to specific criteria for eligibility. Examples include
complex-type foreign investment zones, individual-type foreign investment zones, free
economic zones, and free trade zones.
<Comparison of Locations for Foreign Investment>
Foreign Investment Zone (FIZ) Free Trade Zone (FTZ)

Free Economic Zone
Category Industrial complex Airport, harbor,
Complex type Individual type (FEZ)
type and logistics type
FDI promotion, FDI promotion, FDI promotion,
FDI promotion, transfer of high trade promotion, development of enhancement of national
Purpose
technology, promotion of employment regional global logistics competitiveness, balanced
development bases regional development
Area near harbors
Harbors, airports,
Within industrial and airports, Areas near int'l airports
Location No limitation distributing center,
complexes industrial and harbors
cargo terminals
complexes
Special administrative
Regional Managed as district (municipality
Designated by
Characteris industrial complex Non-tariff district cooperatives)
operation unit
tics for lease ※ 66.12 million~ 198.35
million m²
II. The Investment Environments of Korea and Its Asian Competitors 7

Free Economic Zone
- Foreign investment
companies & FDI
- FDI stake should conditions - Foreign investment
be over 30% ․ Manufacturing : companies
․ Manufacturing, Over $30 million - Domestic and foreign export - Manufacturing,
Eligibility logistics, etc. ․ Tourism : Over companies logistics, medical
for ․ FDI should more $20 million - Foreign investment companies institutions, education
Tenancy than double the ․ Logistics : Over - Export and import wholesalers institutions, foreign
land price within $10 million - Multi-modal logistics broadcasting
3 years of the ․ R&D : Over $2 companies, financial
agreement million(3 years, institutions, etc.
master's degree,
10 people)
- Manufacturing, tourism
- Manufacturing :
Tax : Over $10 million
Over $10 million The same as with the complex type
Breaks The same as above - Logistics, medical
- Logistics : Foreign Investment Zone
Conditions institutions : Over $5
Over $5 million
million
- Corporate tax, income
- Corporate tax, - Corporate tax, - Corporate tax, income tax :
tax : 5 years (7 years
income tax : income tax : 5 years (3 years : 100%,
if individual-type FDI
5 years 7 years 2 years : 50%)
Tax conditions are met)
- Local tax : under - Local tax : under - Local tax : under 15 years subject
Breaks - Local tax : under 15
15 years 15 years to municipality rules
years
In the case of industrial support services and high-tech businesses, 7-year breaks on corporate tax
and income tax (5 years - 100%, 2 years - 50%) are provided regardless of the zones.
Tariff Capital goods : 3-year
Capital goods : 3-year exemption Suspension of tariff imposition
Breaks exemption
1% of the land price
1% of the land 1% of the land price
Rental Cost (Decided by the Zone
price (MKE Notice) (Decided after negotiation)
Management Authority)
- High technology &
FDI amount of over In the case of state - 100% of the land rental cost
To be determined by the
$1 million : 100% and public land, ․ FDI amount of $10 million
Rental Cost Zone Management
- General 100% exemption ․ FDI ratio of 30% and FDI amount
Reduction/ Authority according to
manufacturing & of $1million
Exemption the rules of the
FDI amount of ․ High technology and FDI amount
municipality (50%~100%)
over $5 million : of $500,000
75%

Free Economic Zone
- Seoul Metropolitan area
Financial
: 40% by central government
Support 75% by central government Undecided
- Other areas
Share
: 75% by central government
- Initial (3) : Incheon,
Busan(Jinhae), and
- Complex type (16): Cheonan, Ochang,
- Industry complex type (8) : Masan, Gwangyang
Inju, Gumi 1․2, Pyeongdong, Daebul,
Gunsan, Daebul, Iksan, Donghae, - Additional (3) :
Jinsa, Jangan 1․2, Dangdong,
Current Yulchon, Ulsan, and Gimje, Jeonbuk(Saemangeum,
Sacheon, Osong, Dalseong, Dalseong,
Status - Airport(1) : Incheon Int'l Airport Gunsan), Daegu -
Osong, and Pohang
- Harbors (5) : Incheon, Busan, Gyeongbuk(Gumi,
- Individual type (36) : S-LCD, Asahi
Gwangyang, Pohang, and Dangjin Gyeongsan, Yeongcheon),
Glass, etc.
Hwanghae (Pyeongtaek,
Dangjin)
Source : Invest Korea Administrative Team
□ Land and Building Rental Costs by Region
◦ Land Purchase Costs in Industrial Complexes
- At lower costs, plots are sold or leased within industrial complexes.
<Land Purchase Costs in National Industrial Complexes by Region (per ㎡)>

(Unit : KRW 1,000)
Region Purchase Cost National Industrial Complex
Seoul 3,300 (US$ 2,665.6) Guro Digital Complex
Gyeonggi-do 847 (US$ 684.2) Sihwa National Industrial Complex
Gangwon-do 83 (US$ 67) Bukpyeong National Industrial Complex
Asan National Industrial Complex
Chungcheong-do South 333 (US$ 269)
(Poseung zone)
South 124 (US$ 100.2) Yeosu National Industrial Complex
Jeolla-do
North 182 (US$ 147) Gunsan National Industrial Complex
South 700~800 (US$ 565.4~646.2) Changwon National Industrial Complex
Gyeongsang-do
North 148 (US$ 119.5) Gumi National Industrial Complex
Source : KICOX FEMIS
Note : US$ 1 = KRW 1,238 (Average exchange rate in August 2009)

◦ Purchase and Rental Costs for Commercial Offices
- Office purchase and rental costs vary greatly in Korea depending on the region. In Seoul,
the costs are considerably higher than anywhere else. In the case of the Finance Center,
which has the highest rental costs in Gangnam, Seoul, the rental cost per m² is US$ 24.
Office rental costs continue to rise, although they have slowed down remarkably in recent
months due to the economic crisis.
<Commercial (Office) Purchase and Rental Costs by Region (per ㎡)>

(Unit : KRW 1,000)
Region Average Purchase Cost Average Rental Cost
Downtown Seoul 1 (Gangnam) 10,190 (US$ 8,231)　 19.9 (US$ 16)
Downtown Seoul 2 (Myeong-dong) 4,969 (US$ 4,013.7) 22.1 (US$ 17.9)
General business zones in Seoul (Yeouido) 4,942 (US$ 3,991.9) 14.7 (US$ 11.9)
Smaller provincial city (Daejeon) 1,509 (US$ 1,218.9) 3~6 (US$ 2.4~4.8)
Provincial metropolitan city (Gwangju) 971 (US$ 784.3) -
Provincial metropolitan city (Busan) 1,478 (US$ 1,193.9) 3~6.9 (US$ 2.4~5.6)
Source : Daum Realty and Naver Realty (August 2009), First Quarter 2009 Office Market Report
(2) Labor Management
<General Employment Conditions>
Legal Weekly Working Hours Maternity Leave Annual National Holidays Saturday Holiday System
40 hours Up to 90 days 5 days Being implemented
Source : Ministry of Labor, National Laws Information Center
Note : 1) Certain workplaces implement a 44-hour weekly working system, with the enforcement of the
revised Labor Standards Act deferred.
2) Maternal leave should be over 45 days, and such 45 days may be used before going into
labor.

<Social Insurance System>
Sharing Ratios
Insurance Purpose
Employer Employee
Unemployment benefits
Prevention of unemployment,
(0.45% of the total wage)
Employment promotion of employment, and Unemployment benefits
+ Development of job skills
Insurance development of employees' job (0.45% of the total wage)
(0.25~0.85% depending on
skills
the size of the corporation)
Treatments for work-related 7/1,000 ~ 533/1,000
Accident
injuries, disease, physical of the total wage -
Insurance
disability, or death (according to the job)
National Pension support for ageing,
4.5% of the standard monthly remuneration
Pension insurable diseases, and death
Health Prevention, diagnosis and
2.54% of the standard monthly remuneration
Insurance treatment of diseases and injuries
Source : Guide to Foreign Investment (Invest Korea, KOTRA)
□ Labor Power
◦ Trends of the Working Population
- The working population of Korea is still increasing, but due to employment difficulties,
the ratio of participation in economic activities has declined slightly.
<Working Population Trends (Ratio of Participation in Economic Activities>

(Unit : 1,000 people)
2006 2007 2008
23,978 (61.9%) 24,216 (61.8%) 24,347 (61.5%)
Source : NSO
◦ Education Levels
- Korea has a very low illiteracy ratio of 1.7% (2008), attesting to the nation's high
enthusiasm for education. Every year 490,000 university graduates enter the labor market.

<Yearly Graduate Population by Education Level (2008)>
(Unit : people)
Education Level Graduate Population Total
General High Schools : 423,513
High School Graduates 581,921
Technical High Schools : 158,408
Colleges : 207,741
University & College Graduates 490,411
Universities : 282,670
Master's Degree : 72,924
Master's Degree & PhD Holders 82,293
PhD Holders : 9,369
Source : KEDI
□ Wage Levels
<Average Monthly Wages by Education Level (2007)>

(Unit : KRW)
Education Level Average Monthly Wages
High School Graduates 1,780,570 (US$ 1,438.3)
College Graduates : 1,843,273 (US$ 1,488.9)
University & College Graduates
University Graduates : 2,806,885 (US$ 2,267.3)
Master's Degree & PhD Holders 3,497,500 (US$ 2,825.1)
Source : NSO
<Average Monthly Wages by Occupation>

(Unit : KRW)
Occupation Detailed Category Average Monthly Wages
Public and corporate administrative managers 4,856,780 (US$ 3,923.1)
High-ranking staff and managers 4,172,365 (US$ 3,370.2)
Office
General managers 3,498,868 (US$ 2,826.2)
Office workers 2,107,761 (US$ 1,702.6)
Workers in simple manufacturing 1,377,403 (US$ 1,112.6)
Production
Workers in simple services 1,122,653 (US$ 906.8)
Source : NSO

<Average Monthly Wages by Industry>
(Unit : KRW)
Industry 2005 2006 2007
3,119,900 3,306,609 3,510,884
Manufacturing
(US$ 2,520) (US$ 2,671) (US$ 2,836)
2,170,400 2,324,429 2,376,533
Services
(US$ 1,753) (US$ 1,878) (US$ 1,920)
30,212,186 32,135,057 33,788,553
All Industries
(US$ 24,404) (US$ 25,957) (US$ 27,292)
Source : NSO
□ Labor Disputes
◦ Labor-Management Relations
- Korea's labor-management relations are regarded as a weakness compared to other

categories of Korean business environment, and thus the government is making diverse
efforts to improve labor-management practices by reforming labor regulations and
encouraging labor and management to voluntarily improve their relations.
<Labor Disputes>
2006 2007 2008

Number of arbitrations filed for labor disputes 758 885 851
Number of labor disputes 138 115 108
Number of days of work suspension 1,201 536 809
Number of illegal disputes (Ratio) 24 (17.4%) 17 (14.8%) 17 (15.7%)
Source : 2008 Whole Report on Labor (MOL)
(3) Taxation Conditions
□ Taxation
- Korea's tax ratio from GDP is 22.7% (2007), which is lower than the average tax ratio of
26.9% (2005) among the OECD's member states.

- The corporate tax rate was lowered from 25% in 2008 to 22% in 2009 in the cases of
income in excess of KRW 200 million, and will be lowered to 20% in 2012. In cases of
income falling below KRW 200 million, the corporate tax rate will be reduced from 11%
to 10% in 2010.
<Major Taxes and Tax Rates>
Tax Tax Rate (%)

Under KRW 200 million
11%
(US$ 161,551)
Corporation
Over KRW 200 million 22%
(US$ 161,551) (+ KRW 22 million/US$ 17,770.6)
Under KRW 12 million
6%
(US$ 9,693.1)
Income Tax
KRW 12~46 million 16%
(US$ 9,693.1~37,156.7) (+ KRW 720,000/US$ 581.6)
Individual
KRW 46~88million 25%
(US$ 37,156.7~71,082.4) (+ KRW 6.16 million/US$ 4975.8)
Over KRW 88 million 35%
(US$ 71,082.4) (+ KRW 16.66 million/US$ 13,457.2)
- Per capita equal tax1) : 10% of corporate tax
Corporations
- Per capita equal corporate tax : 10% of income tax
Residents tax - Per capita equal private-business tax : KRW 50,000 (US$ 40.4)
Individual - Per capita equal private tax : within KRW 10,000 (US$ 8.1); subject to
municipality rules
VAT 10% of supply value (taxation standard)
2)
Tariff - Uniform tariff : 8%
(Basic Tariff, - Industrial products : an average of 6.9%
2008) - Agricultural products : 18~50% (under 5% in the case of unavoidable imports)
Source : KIPF
Note : 1) Per capita equal tax : Equal amount of tax imposed per person regardless of one's level of income.
2) Uniform tax : A tariff system wherein a uniform tariff is applied to the majority of major items, with
various tariffs applied to other items according to their characteristics and the country's
business conditions.

(4) Protection of Intellectual Property Rights
□ Policy for the Protection of Intellectual Property Rights
- Korea boasts an advanced system of protection of intellectual property rights.
- Korea has continued to implement a policy designed to improve its system of protection
of intellectual property rights. Consequently, in 2009, Korea was removed from the US
government's yearly Watch List for the first time in twenty years.
◦ Disputes over Intellectual Property Rights
- The number of appeals over patent disputes filed between domestic and foreign
companies in 2008 stood at 620, among which, appeals over trademark disputes numbered
490 or 79.0% of the total, indicating serious infringements of trademarks. Foreign
companies' appeals filed against domestic ones numbered 400 or 64.52% of the total,
which is higher than the number (220 or 35.48%) of appeals filed by domestic
corporations against foreign companies.
◦ International Patent Applications
- According to the WIPO's (World Intellectual Property Organization) 2008 PCT (Patent
Cooperation Treaty) international patent application statistics, the total number of PCT
patent applications around the world amounted to 63,600, up 3.2% from 2007. Korea filed
7,908 patent applications, up 847 (12%) from 2007, representing 4.8% of the world's PCT
patent applications, and ranking 4th. As such, Korea is a major applicant for patents.
<International Patent Applications>

(Unit : patent)
2002 2004 2006 2008
2,520 3,558 5,944 7,908
Source : PCT Yearly Review 2008 (WIPO)

(5) Logistics Environment
□ Marine Transportation
- Korea's major harbors are located in Busan, Incheon, Daecheon, Gwangyang, Yeosu,
Gunsan, Jeju, Mukho, Pohang, and Mokpo.
- Busan Port, which boasts Korea's largest harbor, is situated on the major world trunk
lines to and from North America, Asia, the Middle East, Europe and South America. The
world's 5th-ranking container port, Busan Port handled 13.45 million TEUs (Twenty-foot
Equivalent Unit) of cargo in 2008, up 1.4% from 13.26 million TEUs in 2007.
- The Trans-Korea Railway, which originates in Busan Port, is now fully built (a partial test
operation was conducted in May 2007), and will be connected via the Trans-Asia Railway
with China, Russia, Mongolia, Central Asia and Europe. Successful operation of the
railway will boost Korea's aspirations to become a world-class logistics hub.
- The main airport in the Greater Seoul Area, Incheon Port handled 1.7 million TEUs in
2008, up 2.4% from 1.66 million TEUs in 2007. Incheon Port neighbors the world's second
largest air cargo handler - Incheon International Airport, Korea's capital - Seoul, and
Incheon - committed to establishing itself as a high-tech city.
□ Air Transportation
- Korea has 15 airports, with international airports located in Incheon, Gimpo, Gimhae, Jeju,
Daegu, Cheongju, Yangyang and Muan.
- Incheon Airport, located at the center of Northeast Asia, possesses a highly favorable
international logistics hub location. It offers a speedy, accurate logistics processing
system, and simplified customs clearance procedures to help create an efficient, convenient
business environment. Its air cargo system, dubbed AIRCIS, is highly acclaimed by users.
- Incheon Airport is a four-time winner (2005~2009) of the World Best Airport Award
hosted by the Airports Council International on Airport Service Quality. It grew into the
2nd largest air cargo handling airport with a handling volume of 2.42 million tons in 200

□ Overland Transportation
◦ Railway
- Korea's railway services include Mugunghwaho, Saemaeulho, and KTX (Korea Train
Express) trains. KTX fares are highest, followed by those of the Saemaeulho and
Mugunghwa services.
- KTX was launched in 2004, making Korea the fifth country to have adopted a high-speed
train system after Japan, France, Germany and Spain.
- KTX trains, which can run at speeds of up to 350km/h, connect Seoul and Busan via the
Gyeongbu Line, and Seoul and Mokpo via the Honam Line. KTX serves major cities such
as Daejeon, Daegu, Busan, and Gwangju. The Seoul-Busan KTX line increased Korea's
railway passenger transport capacity by 3.4 times, and its railway cargo transport capacity
by 7.7 times.
<Number of Passengers in Major Railway Stations (2008)>

(Unit : people)
Station KTX Saemaeul Mugunghwa
Seoul 20,020,190 1,406,621 4,544,311
Busan 11,122,725 1,218,308 3,530,162
Source : Korail
◦ Expressway
- Korea has 3,477km of expressways, 13,905km of national roads, 18,517km of metropolitan

urban roads, and 18,193km of local roads. As such, Korea boasts a paved-road network
covering 104,236km with two or more lanes. Korea has 29 expressways including the
Gyeongbu Expressway, the No. 1 national highway.

(6) Public Services
□ Overall Quality of Services
- Korea is fully equipped nationwide with major infrastructures in the waterworks,

electricity, and gas sectors.
<Major Public Services Costs (Seoul)>

(Unit : KRW)
Major Public
Costs Criteria
Services
Category Consumption Amount Basic Price Wattage Price
0~100kwh 370 (US$ 0.30) 55.10 (US$ 0.04)
Home
101~200kwh 820 (US$ 0.66) 113.80 (US$ 0.09)
(Low Voltage)
201~300kwh 1,430 (US$ 1.16) 168.30 (US$ 0.14)
Electricity 4,260~5,310 46~66.9 kwh
4~300kwh
(US$ 3.44~4.29) (US$ 0.04~0.05)
5,280~6,610 57.30~111.30
Industrial use 300~1,000kwh
(US$ 4.26~5.34) (US$ 0.05~0.09)
5,240~6,610 57.8~86.8
Over 1,000kwh
(US$ 4.23~5.34) (US$ 0.05~0.07)
Home 667.24 (US$ 0.54) ㎥
Commercial use
Gas Office 719.63 (US$ 0.58) ※ VAT
Industrial use 638.78 (US$ 0.52) excluded
Raw water 213 (US$ 0.17)
Water Purified water 394 (US$ 0.32)
㎥
works Precipitation-
298.3 (US$ 0.24)
processed water
Petroleum 1756.18 (US$ 1.42) ※ normally including VAT on gasoline
Liter (ℓ)
LPG 817.80 (US$ 0.66) ※ including VAT on automobile butane gas
Source : KEPCO, Gas Station Information System (Opinet), KOGAS, K-water
Note : As of August 2009

(7) Establishment of Corporations and Acquisition of Realty
□ Corporation Establishment System
- There are four types of companies under the Commercial Act, namely partnership
companies, limited partnership companies, joint-stock companies, and limited companies.
Of these, joint-stock companies constitute the majority.
- Foreigners can establish local companies in accordance with the Foreign Investment
Promotion Act and the Commercial Act. The amount of FDI should exceed KRW 50
million (US$ 40,387.7) in order to benefit from the Foreign Investment Promotion Act.
- Generally speaking, the reporting of the establishment of a corporation and the filing of a
business registration application are conducted simultaneously. The reporting and
application can be conducted at the competent tax service offices or Invest Korea
(KOTRA). The reporting of the establishment of a corporation should be completed within
two months of the corporation registration, and the registration of a business should be
completed within 20 days of the commencement of business.
<Corporation Establishment Procedure for Foreigners>
① Foreigner investment report (Invest Korea, foreign exchange banks)

⇩
② Investment fund remittance (foreign exchange banks, customs clearance by carry-on)
⇩
③ Register establishment of corporation (court's register)
⇩
④ Report establishment of corporation and register business (competent tax service offices)
⇩
⑤ Transfer the paid-in capital to the corporate account (foreign exchange banks)
⇩
⑥ Register foreign investment corporation (the initial reporting agency)

◦ Corporation Establishment Costs
- Registration tax : 0.4% of capital; a triple tax imposed in cases where the corporation is to
be built within a large city.
- Local education tax : 20% of registration tax
- Revenue stamp for the Supreme Court : a fee for registration application
- Notarization fee : Articles of Association, etc. (About KRW 150,000/US$ 121.2)
<Foreigners' Realty Acquisition Laws>
Foreigner's Land Acquisition Foreign Investment Promotion Foreign Exchange Transaction

Act Act Act (Realty)
Private individuals of foreign

Non-residents
nationality, foreign Private individuals of foreign
※ Landed immigrants are
corporations, and domestic nationality, foreign
Target excluded from the category
corporations with a foreign corporations, and landed
of those who must report
stake exceeding 50% immigrants
the acquisition of realty
※ excluding landed immigrants
- FDI should be reported in

Acquisition of domestic realty
Foreigners are required to accordance with the
or the relevant rights should
report their acquisition of land prescribed procedures
be reported in accordance
Description in accordance with the - Benefits are provided,
with the prescribed
prescribed procedures including tax breaks on FDI
procedures
(land acquisition report) and the purchase of state-
(Realty acquisition report)
owned property (FDI report)
Land register division of the
Reporting Foreign exchange banks,
city and county offices where Foreign exchange banks
Period Invest Korea (KOTRA)
the land is located
Time of Within 60 days of the Before transfer of investment Withdrawal of funds for the
Reporting conclusion of a contract funds acquisition of realty
Source : Invest Korea

Living Environment
(1) Residential Conditions
□ Residential Convenience
- Yeouido, Hannam-dong and Gangnam, areas in which many foreigners reside, are very
well equipped with shopping facilities, including large marts and department stores, as
well as schools and hospitals, thereby enhancing the quality of life and daily convenience
of foreign residents
◦ Residential Costs
- Foreigners prefer monthly rental types, but the rental charges in their favorite zones are
expensive.
<Rental Costs for Major Residential Areas of Foreigners (Seoul)>

(Unit : KRW 10,000)
Administrative Apartments (For sale)
District (City) Security Deposit Monthly Rental Cost Agency's Commission
50~120
Gwanak-gu
2,000~15,000 (US$ 404~969) - Price x maximum ratio (0.3~0.5%)
(US$ 16,155~121,163) 10~120 : The commission should not
Yongsan-gu
(US$ 80.8~969) exceed KRW 200,000~300,000 /
US$ 161.6~242.3
2,000~20,000 30~150
Yeongdeungpo-gu - In cases where the price exceeds
(US$ 16,155~161,551) (US$ 242~1,212)
KRW 300 million (US$ 242,326.3)
2,000~13,000 12~220 : The commission should be
Guro-gu
(US$ 16,155~105,008) (US$ 97~1,777) negotiated within 0.8% with the
3,000~40,000 170~300 broker
Gangnam-gu
(US$ 24,233~323,102) (US$ 1,373~2,423)
Source : Realty 114, OnNara Realty Info Portal, Seoul City Search Portal, and Daum Realty
Note : 1) Area criteria : 90~120m²
2) Area : Exclusive area + common residential area + other common area + underground parking lot area

(2) Medical Service System
□ Medical Services
- Currently, 38 hospitals are equipped to provide medical services to foreign citizens

throughout the country. Of these, 12 are located in Seoul, and all of them provide
services to foreigners on a 24-hour-a-day basis. In addition, the Seoul Foreigner Support
Center, staffed with volunteer medical staff, provides information on medical services on
a 24-hour-a-day basis.
- English-language medical hot lines are operated by the following 6 hospitals: Seoul
National University Hospital, Severance Hospital, Youngdong Severance Hospital, Seoul
Samsung Medical Center, Soonchunghyang University Hospital, and Kangnam Cha Hospital.
<Hospitals Available for Foreigners (Seoul)>
Hospital Website
Seoul National University Hospital www.snuh.org
Soonchunhyang University Hospital schuh.ac.kr
Korea University Anam Hospital anam.kumc.or.kr
Youngdong Severance Hospital www.yuhs.or.kr
Kyung Hee University Medical Center www.khmc.or.kr
Severance Hospital www.severance.or.kr
Seoul Samsung Medical Center www.samsunghospital.com
Kangnam Cha Hospital kangnam.chamc.co.kr
Seoul Asan Medical Center www.amc.seoul.kr
Kangnam St. Mary's Hospital www.cmckangnam.or.kr
Jasaeng Hospital of Oriental Medicine www.jaseng.co.kr
Hanyang University International Cooperation Hospital imc.hanyang.ac.kr
Source : Foreigners' Living Guide
◦ Medical Insurance System
- Under the national health insurance system, beneficiaries include company workers and
regional subscribers (workers in the agricultural and fisheries industries, and urban
private business operators). Foreigners are also allowed to subscribe to the system.

- Foreigners should shoulder 20% of the medical costs when hospitalized, and 30~50% of
the medical costs as outpatients.
- In Korea, foreign medical insurance services are partially provided.
<Foreigners' Medical Insurance>
Company Workers Regional Subscribers

- Those who complete foreigner registration
(domestic residence) and who are - Those who complete foreigner registration
employees of or employers for companies (domestic residence) and who voluntarily
under the national health insurance system subscribe to the insurance system as they
Subscription - Persons who receive a medical service are excluded from the category of
conditions guarantee under a foreign law and insurance company beneficiaries
system - Those who acquire the following residential
- Persons who receive a medical service eligibility: F-1~5, D-1~9, E-1~10, H-2;
guarantee based on an agreement with their Koreans residing overseas
employer
Three months after entering Korea : provided
that domestic residence is cleared for such
Time of During a person's period of employment by a
reasons as employment or study, the time of
eligibility company
eligibility shall be the time of a person's
entry into the country
- Monthly income × company premium rate;
provided that the residential eligibility
constitutes visitation and living together
- Monthly remuneration amount × premium
(F1), residence (F2), and permanent
rate
residence (F5)
- 50% is shouldered by the person and 50%
- The same-level premiums as those for
Premiums by the employer
domestic persons are imposed and paid
- Premiums are withheld from the person's
every month
salary; this is applicable retrospectively to
- Premium payment applies retrospectively to
the commencement of employment
the date of reporting one's domestic
residence, and premiums are paid in
advance every month
Source : NHIC's Health Insurance Policy Research Institute

(3) Convenience of Transportation
□ Transportation System
- Korea possesses a well developed subway system and bus services. Seoul runs nine
extensive subways lines (numbered 1 to 9). A number of these subway lines run between
Seoul and the Greater Seoul Area, including the Gyeongbu, Gyeongin, Gyeongwon,
Ansan, Gwacheon, Ilsan, Bundang, and Jungang lines. Public announcements on the
subway are made in Korean, English, Chinese and Japanese.
- Bus line information is available over the Internet or through city transportation maps,
and bus stops show detailed bus lines. Overall Seoul bus operations can be confirmed
over the Internet and via mobile phones. Some buses provide English-language
announcement services. Reckless driving, incivility, and skipping bus stops have now been
eliminated; the services have improved greatly.
- A transportation card system is operated along with transport card fares and transfer
discount systems. Basic bus fares are applied every 10km, while transfer services are free.
An additional fare of KRW 100 (US$ 0.08) is applied for every 5km after the first 10km.
◦ Public Transportation Fares
- Korea's public transport fares are inexpensive, and the services are used by a majority of
citizens.
- In the case of taxi fares, the initial 2km traveled incurs a basic fare of KRW 2,400 (US$
1.93). Beyond the first 2km, KRW 100 (US$ 0.08) is charged for every 144m or 35 seconds.
Also, between 12 am and 4 am, a 20% surcharge is applied.

<Subway Fares (Seoul)>
Category Transportation Card Cash

Under 10km : KRW 900 (US$ 0.72)
Adult 10~40km : KRW 100 (US$ 0.08) every 5km
KRW 1,000
Beyond 40km : KRW 100 (US$ 0.08) every 10km (US$ 0.80)
KRW 720 (US$ 0.58)
Youth
※ 20% discount on the adult fare
Elementary school KRW 450 (US$ 0.36)
KRW 500 (US$ 0.40)
students ※ 50% discount on the adult fare
- Elderly people aged 65 years or older (ID card should be presented)
Free - Patriots and veterans belonging to disability classes 1 to 7
(including one accompanying protector)
Source : Seoul City Transportation Headquarters
Note : Subway fares are determined in proportion to the distance traveled
<Bus Fares (Seoul)>

(Unit : KRW)
Transportation Card Cash
Category
Adult Youth Children Adult Youth Children
900 720 450 1,000 450
General buses
(US$ 0.72) (US$ 0.58) (US$ 0.36) (US$ 0.80) (US$ 0.36)
Metropolitan 1,700 1,360 1,200 1,800 1,200
buses (US$ 1.37) (US$ 1.10) (US$ 0.97) (US$ 1.45) (US$ 0.97)
Source : Naver Regional Information
(4) Education Facilities for Foreigners
□ Foreign School
- Korea currently has 45 foreign schools, of which 19 are American and British schools, 18
are Chinese schools, and 8 are other foreign schools (Turkish, Mongol and Norwegian).

<Foreign Schools and Curriculum by Region>
(Unit : school)
Curriculum Seoul Gyeonggi Busan Others Total
American and British 8 5 1 5 19
Chinese 3 2 2 11 18
Japanese 1 - 1 - 2
Others 5 - 1 - 6
Source : MKE and KOTRA
◦ Tuition Fees of Foreign Schools
- Yearly tuition fees for foreign schools are expensive, generally costing twice as much as
two years of tuition fees for Korean private universities.
- Seoul Foreign School (American), launched in Seodaemun-gu, Seoul, in 1978, constitutes

one of the longest-serving foreign schools. As of 2008, about 1,400 foreign students were
attending the school, making it Korea's representative foreign school.
<Annual Tuition Fees of Foreign Schools>

(Unit : KRW)
Category Seoul Foreign School Korea Kent Foreign School
7,000,000 14,500,000
Kindergarten
(US$ 5,654.3) (US$ 11,712.4)
14,625,000 15,200,000
Elementary School
(US$ 11,813.4) (US$ 12,277.9)
14,550,000 16,000,000
Middle School
(US$ 11,752.8) (US$ 12,924.1)
18,425,000 17,200,000
High School
(US$ 14,882.9) (US$ 13,893.4)
Source : Seoul Foreign School, Korea Kent Foreign School
Note : As of August 2009

(5) Development of Communication Systems
□ Development Level of Communication Systems
- Korea, a global IT power, boasts a highly developed communication system and an

Internet penetration ratio of 80.6%, which is the world's best level. Korea provides a very
fast broadband Internet speed and high-quality mobile services, but communication
charges are a little expensive compared with other developed countries.
<Communication Services Fees>

(Unit : KRW)
Mobile Phone Internet
General Phone General Phone Mobile Phone Service Fee Installation Fee Internet
Subscription Fee Basic Fee Subscription Fee (Standard Fee (No agreement~ Service Fee
System) 3 years)
12,000
(US$ 9.7)
60,000 2,500~5,200 55,000 0~30,000 31,350~41,800
※ 18 (US$ 0.01) is
(US$ 48.5) (US$ 2~4.2) (US$ 44.4) (US$ 0~24.2) (US$ 25.3~33.8)
added every 10
seconds
Source : KT (Korea Telecom), SK Telecom
Investment System
(1) Investment Law
□ Law on the Promotion of Foreign Investment
- The Foreign Investment Promotion Act (the Act) was enacted in 1988 to promote foreign
investment by providing support for and enhancing the convenience of foreign
investment. Furthermore, FDI-related foreign exchange and external transactions must be
governed by the Foreign Exchange Transaction Act unless otherwise specified in the Act.
Tax breaks on FDI must be governed by the Special Taxation Restriction Act and its
enforcement ordinances and rules, and by the regulations on tax breaks for FDI.

□ Businesses Subject to Limitations on Foreign Investment
- The categories of businesses excluded from FDI are announced under the integrated
regulations and notifications concerning FDI and the introduction of technologies,
although limited FDI is allowed for certain businesses.
- Businesses excluded from FDI

⋅Postal services; central banks; private mutual aid organizations; business mutual aid
organizations; pensions; financial market management services; domestic banks; financial
support service, etc.
⋅Legislative, judiciary and administrative agencies; foreign legations in Korea; and other
international and foreign agencies.
⋅Economic R&D; humanities and social science R&D businesses.
⋅Education institutes (ranging from kindergartens and elementary schools to universities
and special schools, etc.)
⋅Artists and religious organizations; and industrial, environmental, political and labor
movement organizations, etc.
⋅Grain and other food crop cultivation businesses; beaf cattle breeding businesses; littoral
fisheries; and meat wholesalers.
⋅Businesses involved in the collection, carriage and treatment of radioactive waste;
electricity transmission and distribution; electric power generation; thermal power
generation; nuclear power generation; manufacture of basic organic chemical substances;
refining, alloying and manufacturing; and the refining of non-ferrous metals.
⋅Businesses involved in passenger transportation; port cargo transportation; scheduled air
transportation; and unscheduled air transportation.
⋅Businesses involved in the publication of magazines and periodicals; newspaper
publication; radio broadcasting; terrestrial broadcasting; program provision; cable
broadcasting; satellite and other forms of broadcasting; cable communication; radio
communication; satellite communication; news provision; and other types of
telecommunication.

(2) Investment Promotion Agency
□ Korea's Investment Promotion Agency
Agency KOTRA (Invest Korea)

Upper Agency The Ministry of Knowledge Economy
In 2003, KOTRA was established under the control of the MKE, pursuant to the
History
Foreign Investment Promotion Act KOTRA.
Workforce 103 (including 19 officials appointed by the government)
Invest Korea is staffed by its head, KOTRA officials, and experts in several sectors,
as well as by officials from various ministries. They coordinate with KOTRA's 39
Organization
overseas KBCs (Korean Business Centers) located in major financial and policy hubs
all over the world.
KOTRA implements the government's policy on foreign investment in Korea, which is
Characteristics formulated by the MKE and coordinated by the Foreign Investment Committee, the
latter being headed by the Minister of Knowledge Economy.
- Invest Korea undertakes to perform a diverse range of activities concerned with the
process of investment promotion, ranging from PR, the promotion of direct investment,
and professional consultancy, to the provision of support for and the direct handling of
approvals and permissions, consulting services aimed at helping investors to settle in
Korea, and ex post management.
<Overview of Invest Korea's Roles>
- Survey investment information : Search for and provide the information necessary for
feasibility studies on investment.
Investment - Explore partners : Explore investment partners through KOTRA's KBCs.
Consulting - Consulting services in professional areas : exclusive investment, joint investment, M&A,
Services realty investment, etc.
- Consulting services in professional areas such as investment systems and laws,
accounting and taxation.

- Arrange consultation : Arrange consultation between foreign investors and Korean partners.
- Accept investment report : Receive foreign investment reports.
- Explore factory sites : Explore optimal factory sites for investors' requirements and
provide the necessary administrative services.
Administrative
- Approval and permission services : Provide all the approval and permission services
Support
necessary for investment.
- Cooperate with relevant agencies : Arrange consultation between foreign investors,
Korean government agencies, local municipalities,
and Korean companies.
- Ombudsman : The home doctor system helps foreign investment companies to address
various difficulties.
- VISA extension : Help the employees of foreign investment companies with foreign
Ex post
registration and extension of stay.
Support
- Support for settlement in Korea : Assist foreign investment companies' employees and
their families with settling comfortably in Korea by
exploring housing, foreign schools, etc.
□ Local Municipalities and Free Economic Zones (FEZs)
- Investment Promotion Centers and Investment Attraction Initiatives Centers (Investment

Attraction Division, International Commerce Division) in 16 cities, provinces and FEZs
carry out a range of investment promotion works.
(3) Major Investment Incentives
□ Tax Break Incentives
- Under the Special Taxation Restriction Act, Korea implements a system of tax breaks
designed to facilitate the transfer of cutting-edge technologies and to promote foreign
investment.

<Breaks on National and Local Taxes>
Tax Breaks
Targets of Tax Breaks Period of Tax Investment Requirements for
Detailed Targets
Breaks Tax Breaks
- Highly advanced technology
- Businesses requiring highly : none
advanced technologies, and - 7-year breaks - Investment area
industrial support services ․ 5 years : 100% ․ Manufacturing : US$ 30 million
- Corporations in development - National tax ․ 2 years : 50% ․ Tourism : US$ 20 million
areas requiring investment ․ Corporate tax ․ Logistics : US$ 10 million
․ Income tax ․ R&D : US$ 2 million
- Companies in a complex-type
- Manufacturing, tourism and
FIZs - Local tax
corporate cities : US$ 10 million
- Companies in FEZs ․ Acquisition tax
- Logistics : US$ 5 million
- Companies in FTZs ․ Registration tax - 5-year breaks
- FEZ developers
- Companies in corporate city ․ Property tax ․ 3 years : 100%
: Investment amount of over
development zones ․ 2 years : 50%
US$ 30 million or FDI ratio of
- Developers in FEZs
50%, and total investment of
- Developers in corporate city
over US$ 500 million
development zones
□ Cash Support
- The cash support system is designed as a means of providing cash support to foreign
investors in order to promote foreign investment for the purpose of national economic
development, provided that certain requirements are met, including a guarantee that the
support money be used for specific purposes based on negotiations with the foreign
investors.
- Targets : Candidate corporations with an FDI ratio of over 30% should build or expand
factories for businesses requiring highly advanced technologies or for industrial
support services with an investment amount of US$ 10 million; should build
and expand factories for the production of parts and materials with an
investment amount of over US$ 10 million; or should newly install or expand
research facilities to conduct R&D activities relating to the businesses requiring
highly advanced technologies; and should have a usual workforce of over 10

people who are relevant master's degree holders or have a relevant bachelor's
degree with over three years of experience in research.
- Uses : Land purchase costs or rental costs for installing factory facilities or research
facilities; construction costs for factory facilities or research facilities; purchase
costs for capital goods and research materials and items of equipment that are
used for business or research in factory facilities or research facilities; installation
costs for electric and communication facilities that are needed for building factory
facilities and research facilities; and employment subsidies and education and
training subsidies.
- The cash amount and detailed conditions are determined through negotiations between
the government and the investor (5~15% of the FDI amount). The sharing ratios of the
central government and the local government are fixed.
□ Financial (Location) Support
- If a local municipality promotes foreign investment with an FDI ratio of 30% or with the
foreign investor being the largest shareholder, the central government can provide
financial support such as location costs. Location support is provided by leasing, lending
or selling the state's or the local municipality's land or factories or other properties to FDI
corporations or operators of FDI environment improvement facilities.
- Cash support limits including the purchase costs for land are outlined as follows.
⋅New investment : Under 50% of the FDI amount
⋅Investment for facility expansion : 50% of the FDI amount or 25% of the sum of the
FDI amount and the earned surplus.
- Support for land rental

⋅Land purchase costs and their sharing ratios
: Land is provided by designating and purchasing Foreign Investment Zone (FIZ), and
the cost-sharing ratios are 40% (central government) and 60% (local municipality) in
the case of the Greater Seoul Area, and 75% (central government) and 25% (local
municipality) in the case of other regions.

<Breaks on Rental Costs of State Property>
Targets of Breaks on Rental Costs Details of Breaks

Individual-type FDI zones 100% exempted
Business requiring highly advanced technologies Complex-type FDI zones 100%
(over US$ 1 million) Industrial complexes 50%
General manufacturing businesses Complex-type investment zones 75%
(over US$ 5 million) Industrial complexes 50%
- Support for a difference in land sales price

: Under the Act on Industrial Location and Development, the government and the local
municipality together provide foreign investment companies with the financial subsidy
for the difference between the contracted land price and the normal land sales price;
provided that such support targets the land owned by industrial complex developers.
- Support for rental costs

: The Minister of Strategy and Finance or the agency for state property management may
exempt or reduce land rental charges in the event that land in Foreign Investment Zone
(FIZ), national industrial complexes, general industrial complexes, urban high-tech
industry zones, and agricultural and industrial complexes is rented out to foreign
investment companies; and the head of a local municipality may exempt or reduce the
land rental charges in the event that the municipality's land is rented out to foreign
investment companies.

2 Taiwan
- Industrial development underpins the economic development of Taiwan. To that end, the
government establshed industrial complexes which are divided into four groups, namely
industrial complexes, science parks, export processing zones, and FTZs.
◦ Land Purchase and Rental Costs in Industrial Complexes
- National industrial complexes, like private commercial offices, are highly popular among
tenants, and those industrial complexes in northern areas where there are vigorous
economic activities charge relatively high rental costs.
<Land Purchase Costs in Industrial Complexes (per ㎡)>

(Unit : NT$)
Industrial Complexes Purchase Costs
Northern region 4,500~55,000 (US$ 136.9~1,673.8)
Central region 4,000~21,000 (US$ 121.7~639.1)
Southern region 4,500~26,000 (US$ 136.9~791.2)
Source : Ministry of Economic Affairs, DTZ
Note : US$ 1 = NT$ 32.86 (Exchange rate at the end of 2008)

<Land and Factory Rental Costs in Science Parks (per ㎡)>
(Unit : NT$)
Science Parks Land Rental Costs Factory Rental Costs
52.92 98~126
Hsinchu Park
(US$ 1.61) (US$ 2.98~3.83)
Hsinchu Science Park
15.09 125
Jhunan Park
(US$ 0.46) (US$ 3.80)
14.7 123
Taichung Base
(US$ 0.45) (US$ 3.74)
1.39
Central Taiwan Science Park Yunlin Site -
(US$ 0.04)
1.55
Houli Site -
(US$ 0.05)
19.96
Tainan Park
(US$ 0.61) 103~120
Southern Taiwan Science Park
6.1 (US$ 3.13~3.65)
Kaohsiung Park
(US$ 0.19)
Source : Science park management agencies
<Land Rental Costs in Export Processing Zones (per ㎡)>

(Unit : NT$)
Region Export Processing Zones Land Rental Costs
Central Taichung Export Processing Zone 9.15 (US$ 0.28)
Region Chungkang Export Processing Zone 7.5 (US$ 0.23)
Nanzih Export Processing Zone 11.50 (US$ 0.35)
Kaohsiung Export Processing Zone 10.50 (US$ 0.32)
Chenggong Logistics Export Processing Zone The land is owned by
Southern Daedanggongsa, and the land rental
Siaogang Air Freight Logistics Export Processing Zone
Region cost is 6.25% of the land price
Kaohsiung Software Park 39.2 (US$ 1.19)
Linguang Export Processing Zone 12.5 (US$ 0.38)
Pingtung Export Processing Zone 1.33 (US$ 0.04)
Source : MOEA's management agency for export processing zones

<Land and Factory Rental Costs in Free Trade Zones (per ㎡)>
(Unit : NT$)
Free Trade Zones Commencement Land and Factory Rental Costs
Keelung Free Trade Zone September 2004 74~160 (US$ 2.25~4.87)
Taipei Free Trade Zone September 2005 198.25~208 (US$ 6.03~6.33)
Taoyuan Air Cargo Free Trade Zone January 2006 363 (US$ 11.05)
Taichung Free Trade Zone October 2005 117~192 (US$ 3.56~5.84)
Kaohsiung Free Trade Zone January 2005 9.4 (US$ 0.29)
Source : FTZs
Note : Rental costs for Kaohsiung do not include facility rental costs.
◦ Purchase and Rental Costs for Commercial Offices
- There is no major difference in the price of office purchase or rental costs between Taipei
and local cities.
- Having experienced an economic upturn recently, and opened up investment to China,

the demand for commercial offices and realty is heating up.
<Commercial (Offices) Purchase and Rental Costs by Region (per ㎡)>

(Unit : NT$)
Region Purchase Costs Rental Costs
180,000 711
Taipei City (A class)
(US$ 5,477.8) (US$ 21.6)
106,000~121,000 485
Taipei City (B class)
(US$ 3,225.8~3,682.3) (US$ 14.8)
Northern Region
39,000~67,000 180~330
Taipei Prefecture
(US$ 1,186.9~2,039) (US$ 5.5~10)
21,000~52,000 120~260
Other northern areas
(US$ 639.1~1,582.5) (US$ 3.7~7.9)
27,000~33,500 150~180
Taichung City
(US$ 821.7~1,019.5) (US$ 4.6~5.5)
Central Region
15,000~24,000 90~140
Other central cities
(US$ 456.5~730.4) (US$ 2.7~4.3)
27,000~33,500 135~150
Kaohsiung City
(US$ 821.7~1,019.5) (US$ 4.1~4.6)
Southern Region
16,500~26,000 90~150
Other southern cities
(US$ 502.1~791.2) (US$ 2.7~4.6)
Source : DTZ

<General Employment Policies>
Under 8 hours a day, a total
56 days About 10 days Being implemented
of 84 hours in 2 weeks
Source : Labor Standards Act
Premium Rate Sharing Ratios Government

Insurance Relevant Agency
(Monthly) Employer Employee Subsidy Ratio
National Health Bureau of National
4.55% 60% 30% 10%
Insurance Health Insurance
Employment Bureau of Labor
1% 70% 20% 10%
Insurance Insurance
Bureau of Labor
Labor Insurance 5.5% 70% 20% 10%
Insurance
Source : BNHI, BLI
□ Labor Power
◦ Working Population Trends
- Taiwan has seen a steady increase in its working population in recent times.
- Taiwan is also seeing an ongoing increase in its non-working population with the
transition to an aging society.
<Working Population Trends>

2006 2007 2008
1,052 1,071 1,085
Source : Executive Yuan's CLA

- Taiwan, a country with scarce natural resources, has a great deal of enthusiasm for
education. Thus, the people are basically university graduates, and a growing number of
people are in master's degree courses.
- Annual number of high school graduates are a little larger than university and college
graduates.

(Unit : people)
Education Level Graduate Population
High School Graduates 238,101
University & College Graduates 230,198
Source : Ministry of Education
□ Wage Levels
- The minimum monthly wage is NT$ 17,280 (US$ 525.9), and the minimum hourly wage is
NT$ 95 (US$ 2.9), according to the prescribed regulation.
- Wages, lower than Taiwan's per capita GNP, give the country greater labor productivity
than its competitors. However, due to high prices, most married couples both have to
work to earn a living.
<Average Monthly Wages by Education Level (2006)>

(Unit : NT$)
High School Graduates 31,516 (US$ 959.1)
University & College Graduates 44,245 (US$ 1,346.5)
Master's Degree & PhD Holders 69,533 (US$ 2,116)
Source : Executive Yuan's Accounting Agency

<Average Monthly Wages by Occupation (2006)>
(Unit : NT$)
Occupation Detailed category Average Monthly Wages
Managers 64,913 (US$ 1,975.4)　　　
Office
Office workers 33,196 (US$ 1,010.2)
Skilled workers 36,335 (US$ 1,105.8)
Production
Unskilled workers 29,392 (US$ 894.5)
◦ Average Wages by Industry
- Service industries account for over 70% of Taiwan's economy, thus making a significant
contribution to the country's economic growth. The average wage in this sector is a little
higher than that received by workers in the industrial sector.
- The average wage is NT$ 30,000~40,000 (US$ 912.9~1,217.3).
<Average Monthly Wages by Industry (2007)>

(Unit : NT$)
Industry Average Monthly Wages
Machines and equipment 39,102 (US$ 1,190)
Manufacturing Electronics parts 49,344 (US$ 1,501.6)
Automobiles and automotive parts 46,720 (US$ 1,421.8)
Wholesale 32,667 (US$ 994.1)
Services Logistics and warehousing 41,292 (US$ 1,256.6)
Insurance 67,824 (US$ 2,064)
Construction 40,676 (US$ 1,237.9)
Source : Executive Yuan's Accounting Agency
□ Labor Disputes
- As of 2007, 4,588 labor unions had been established in Taiwan, and the number of union
members stood at 3 million.

- Although the number of labor disputes in Taiwan has been increasing each year, the
majority of them are successfully settled in negotiations involving labor, management, and
the government. The labor market is very flexible, prompting workers to transfer to
different jobs rather frequently.
<Labor Disputes>
(Unit : dispute)
2005 2006 2007
Labor Disputes 14,256 15,464 19,729
<Major Taxes and Tax Rates (2008)>
Tax Tax Rate(%)

- Corporate Tax : 15%, 25%
Income Tax
- Individual Tax : 6%, 13%, 21%, 30%, 40%
VAT 5%
Source : Taiwan Investment Guide
<Modification of Corporate Tax>

(Unit : NT$)
Category Current After Modification
Up to 50,000 (US$ 1,521.61) : 0%
Tax Rate 50,001~100,000 (US$ 1,521.64~3,043.21) : 15% 20%
Over 100,001 (US$ 3,043.24) : 25%
Minimum Tax Rate 50,000 (US$ 1,521.61) 120,000 (US$ 3,651.86)
Source : Ministry of Finance's Taxation Agency

- To join the WTO, Taiwan took action to modify its law pertaining to intellectual property
rights, beginning in 1997. Immediately after officially joining the WTO, its Executive Yuan
strongly cracked down on the illegal copying of products for three years from 2002. In
2003, the Intellectual Property Rights Protection Police Force was established to strengthen
crackdowns on illegal copying. On the strength of these efforts, Taiwan was able to lower
its illegal copying ratio from 43% to 40% for three years (2006~2008), thereby achieving
the third lowest ratio in Asia after Japan (23%) and Singapore (37%). Since July 2008, a
court dedicated exclusively to dealing with lawsuits over intellectual property rights has
been handling such lawsuits promptly and efficiently.
◦ Disputes over Intellectual Property Rights
- Disputes over IPRs increased remarkably in 2007 from 2006, but decreased somewhat in
2008.
<Disputes over Intellectual Property Rights>

(Unit : dispute)
2006 2007 2008
6,530 8,317 7,906
Source : MOEA's Bureau of Intellectual Rights
<Domestic Patents Applications>

(Unit : patent)
2005 2006 2007
42,749 47,648 46,650
Source : MOEA's Bureau of Intellectual Rights
Note : Taiwan is not a signatory to the PCT, so the results of its international patent application with the WIPO
(World Intellectual Property Organization) are not available

- Taiwan is ideally located to connect Southeast Asia with Northeast Asia. Notably,
Kaohsiung Port has long served as a logistics hub in Asia. Taiwan has four international
ports, namely Keelung Port, Kaohsiung Port, Taichung Port, and Hualien Port, which are
located in the northern, central, southern, and eastern regions, respectively.
- Kaohsiung Port is Taiwan's most representative port, was once one of the world's six
largest ports, and had a route connecting with Busan Port. However, with China's
international ports undergoing rapid growth since 2007, Kaohsiung Port fell to 12th place
worldwide in 2008, forcing it out of the world's ten largest ports.
<Container Handling Volume of Taiwan's International Ports>

(Unit : TEU)
2006 2007 2008
Keelung Port 2,128,815 2,215,483 2,055,258
Kaohsiung Port 9,774,671 10,256,830 9,676,554
Taichung Port 1,198,530 1,247,750 1,239,412
Source : Ministry of Transportation and Communications
- Taiwan has two international airports (Taoyuan International Airport and Kaohsiung
International Airport) and sixteen domestic airports.
- Taipei Songsan Airport has been functioning almost exclusively as a domestic airport
since the opening of Taoyuan International Airport in 1979. Beginning in the second half
of 2008, with the opening of direct air routes between Taiwan and China, flights are
being operated between the two countries.

<International Airports (2008)>
Passenger Terminal Cargo Handling Passenger Handling

Airport
Area Volume Volume
Taoyuan
502,474㎡ 1,493,120 tons 21,936,083 people
International Airport
Kaohsiung
88,485㎡ 62,139 tons 4,160,515 people
International Airport
Source : MOTC
◦ Rail and Expressways
- Taiwan has a circular railway network which connects major areas in the eastern and
western regions of the island.
- Taiwan has an expressway network consisting of three South-North lines. Expressways are
concentrated in the western region; however, to balance development between the
mountainous eastern region, the western region and Taipei, the Yiran expressway, among
other expressways, was opened.
(6) Public Services
□ Overall Service Quality
- Taiwan's waterworks, electricity and gas services are reliable, as well as somewhat
inexpensive compared with Korea.

<Major Public Services Costs>
(Unit : NT$)
Major Public
Costs Criteria
Services
Electricity 1.64~1.87 (US$ 0.049~0.057) kwh
Industrial 14.3066~16.0641 (US$ 0.435~0.489)
Gas m³
Home 14.5 (US$ 0.441)
17~55,590 (US$ 0.517~1,691.72)
Basic Costs m³/month
※ 126 (US$ 3.83) is the most common
Waterworks ※ Based on
Water Costs 5~7.6 (US$ 0.152~0.231)
Taipei
Sewage Service Costs 5 (US$ 0.152)
Petroleum 30~32.2 (US$ 0.913~0.979)
Liter (ℓ)
LPG 23.81 (US$ 0.725)
Source : Taiwan Power Company, Taiwan National Oil Company, Taiwan Water Company
Note : Waterworks services charge eleven types of basic fees according to the diameter of pipes, the most common
being 25mm
(7) Establishment of Corporation and Acquisition of Realty
- According to Taiwan's Corporation Act, corporations are classified into the following four
groups, while foreign investment corporations are normally established as either a limited
company or a joint-stock company.
<Types of Corporations>
Category Description
A company with over two shareholders who jointly take unlimited responsibility
Unlimited Liability Company
for its liabilities.
A company with over one shareholder who assumes liability within the investment
Limited Company
amount.
Unlimited and Limited Joint A company with over one unlimited-liability shareholder and over one limited-
Company liability shareholder who take liability according to the prescribed liability.
A company with over two shareholders or over one government and one
Joint-Stock Company corporate shareholder wherein the shareholders assume liability within the
scope of their share-holdings.

① Search company name and file application

⇩
② File application seeking investment approval
⇩
③ Remit funds
⇩
④ Appraise funds
⇩
⑤ Register company establishment
⇩
⑥ Register business operator
⇩
⑦ Register establishment of export and import company
(Before filing application for establishment registration,
it is necessary to search the English version of the company name)
□ Foreigners' Acquisition of Realty
◦ Laws Pertaining to Foreigners' Acquisition of Realty
- Taiwan allows foreigners to purchase realty on a reciprocal basis with counterpart

countries to which such foreigners belong on the condition that those countries allow
Taiwanese to purchase realty in their countries. Realty purchase through realty agents is
regarded as a safe and convenient procedure.
<Costs Regarding Realty Purchase>
Description Costs
Stamp Tax 0.1% of the transaction amount
6% of the transaction and gift amount (This tax on realty ownership transfer should
Deed Tax
be fully paid before transferring the realty)
Registration Fee 0.1% of deed tax
Varying tax rates by purposes applied. 1.2~2% for residence; 3~5% for commerce; and
House Tax
1.5~2.5% for public organizations such as hospitals and healthcare centers
Land Value Tax 1% of the transaction amount
According to the rules on realty management enacted by the Minister of the Interior
(Department of Land Administration), the agency fee is jointly shouldered by the
Agency Fee
purchaser and the seller at a ratio of 1~2% to 3~4% of the transaction amount. The
fee should be under 6% of the transaction amount.

Living Environment
- In Taiwan, foreign resident workers generally rent housing on a monthly basis.
- The monthly rental fee is calculated in terms of NT$ per 3.3 m², and should be paid in
advance every month, with the administrative cost and the parking fee to be separately
paid every month.
- According to the local practice, a security deposit for rental, usually amounting to 2 to 3
months' rent, should be paid. The security deposit will be returned to the lessee after the
rental period, after any incurred electricity and waterworks charges still owing, and
remedial costs (for any damaged property) have been deducted from the deposit.
<Residential Costs>
(Unit : NT$)
Monthly Apartment Monthly Apartment
Realty Agency Commission Security Deposit
Rental Cost (162~198㎡) Rental Cost (99㎡)
60,000~90,000 32,860~65,720
50% of monthly rental cost 2~3 months of rental cost
(US$ 1,825.9~2,738.9) (US$ 1,000~2,000)
Source : DTZ
Note : Based on the foreigners-clustered district of Tianmu, Taipei
- Taiwan's medical service environment is generally good. Medical service facilities and
manpower are abundant, with a total of 20,000 hospitals currently in operation. The

number of sickbeds per 1,000 people stands at 6 sickbeds. Medical personnel generally
speak good English.
<Hospitals Available for Foreigners>
Hospitals
Nation Taiwan University Hospital
Taiwan Adventist Hospital
Taipei Veterans General Hospital
MacKay Hospital
Chang Gung Memorial Hospitals
- Taiwan's superior medical insurance system is being benchmarked by many countries.

Medical services of high quality are provided, despite the low premiums.
- Domestic nationals and foreigners in Taiwan are allowed to subscribe to the medical
insurance. Foreigners are required to earn a resident permit and stay for more than four
months to be eligible for the services. Employees, if legally hired, are qualified to
subscribe to the medical insurance upon being employed, regardless of the length of their
period of stay.
<Taiwan's Health Insurance>
- Insurance Title : National Health Insurance

- Relevant Agency : National Health Insurance Bureau
- Premium rate : 4.55% of the employee's wage
- Premium sharing ratio : employer (60%), insured (30%), government (10%)
- Taiwanese medical services are also characterized by the use of IC cards. When a patient
visits a hospital for the first time, an IC card search is conducted. All information
concerning the patient's medical history, including the diagnosis and treatment of diseases
by various hospitals, is shared to prevent duplicate diagnoses. The Taiwanese government
strictly controls medical costs to prevent them from rising by over 4% each year.

- Taiwan is equipped with convenient transportation systems including roads, railway, and
subways.
- In Taipei, people pay with a transportation card (悠遊卡, Easy Card) when using any of
the public transportation systems, and receive a certain discount for transferring from one
bus or subway train to another.
Transportation Description
- The MRT runs in two cities, Taipei and Kaohsiung, from 6 am to midnight.
Mass Rapid - Smoking, drinking and eating are strictly forbidden within the subways to create a
Transit System safe and pleasant environment. Violators are fined NT$ 1,500 (US$ 45.6).
(MRT) - The journey fee of NT$ 20~45 (US$ 0.61~1.4), is calculated according to the
distance traveled, and tickets are effective only on the day of purchase.
- Route information is clearly posted at bus stops, and electronic information boards
are posted along with announcements within the buses, making the services
convenient. However, bus operation intervals are not consistent.
Bus
- Intra-city buses normally run 6am to 11pm, and fees are charged per travel
segment, with one segment costing NT$ 15 (US$ 0.46) and two segments costing
NT$ 30 (US$ 0.91).
- Taxis are numerous and easily available anywhere in downtown areas.

- The basic fee varies slightly according to the region. In Taipei a basic fee of NT$
70 (US$ 2.13) is charged. Beyond 1.25km, NT$ 5 (US$ 0.15) is added for every
Taxi
additional 250m, and another NT$ 5 (US$ 0.15) is added for every stoppage of 1
minute and 40 seconds. As such, the charging system is a combination of time and
distance. From 11 pm to 6 am, a surcharge of NT$ 20 (US$ 0.61) applies.
- General train and high-speed train services are provided. The high-speed train
service, launched in 2007, currently stops at eight stations, and will eventually stop
at another five stations.
Railway
- On the high-speed train service, a one-way general seat from Taipei to the final
station costs NT$ 1,490 (US$ 45.3), which is NT$ 600 (US$ 18.3) more than the
general train services.

<Public Transportation Fares>
(Unit : NT$)
MRT Bus Taxi Railway
- Taipei ~ Taichung
20 15 70 : 375 (US$ 11.41)
(US$ 0.61) (US$ 0.46) (US$ 2.13) - Taipei~Kaohisung
: 845 (US$ 25.72)
□ Foreign Schools
- Taiwan has 18 foreign schools, 8 in Taipei, 2 in Hsinchu, 3 in Taichung, and 5 in

Kaoshisung.
<Foreign Schools>
Region School Curriculum Website

Kindergarten
Taipei American School www.tas.edu.tw
~12th school year
Kindergarten
Taipei Korean School www.taipeikoes.com
~6th school year
Dominican International Kindergarten
-
School ~12th school year
Kindergarten
Morrison Academy bethany.mca.org.tw
Taipei City ~9th school year
Taipei Japanese School 1st~9th school year www.taipeijs.org
Kindergarten
Taipei European School www.taipeieuropeanschool.com
~9th school year
Kidergarten
Taipei Fulin School -
~8th school year
Grace Christian Kindergarten
gcasaints.org
Academy ~8th school year
Hsinchu Holland Dutch Kindergarten
www.hdis.hc.edu.tw
International School ~12th school year
Hsinchu City
Hsinchu American
1st~12th school year www.has.hc.edu.tw
School

Region School Curriculum Website
American School in Kindergarten
www.ast.tc.edu.tw
Taichung ~12th school year
Taichung City
Kindergarten
Morrison Academy www.mca.org.tw
~12th school year
Taichung Elementary and secondary
Taipei Japanese School tjs97.myweb.hinet.net
Prefecture schools
Kaohsiung Kindergarten
www.kas.kh.edu.tw
American School ~6th school year
Kaohsiung Japanese Elementary and secondary
takaojs.hihosting.hinet.net
School schools
Kaohsiung City
Kaohisung Korean Kindergarten
-
School ~6th school year
Kindergarten members.fortunecity.com/
Dominican School
~8th school year dominicanschool
Kaohsiung Kindergarten
Morrison Academy www.mca.org.tw
Prefecture ~9th school year
- American schools charge higher tuition fees than other foreign schools, whose tuition fees
are generally similar to or somewhat lower than those charged by foreign schools in other
countries.
<Tuition Fees of Foreign Schools by Region>

(Unit : NT$)
Region Admission Fee Tuition Fee (Per Semester)
45,600~217,700
Taipei
20,000~25,000 (US$ 1,387.7~6,625.1)
(US$ 608.6~760.8) 110,000~179,000
Hsinchu
(US$ 3,347.5~5,447.4)
10,000~25,000 64,800~77,100
Taichung
(US$ 304.3~760.8) (US$ 1,972~2,346.3)
25,000~27,000 40,000~161,100
Kaohsiung
(US$ 760.8~821.7) (US$ 1,217.3~4,902.6)
Source : Deloitte & Touche Survey

□ Development Level of Communication Systems
- Taipei's mobile communication services (mobile, Internet, broadband) have developed

rapidly, and service charges are being lowered in line with the development of
communication technologies. In 2007, the number of mobile subscribers reached 23.4
million, with a penetration rate of 106.1%; and, with the introduction of 3G services, the
mobile market is growing continually. The number of Internet users in Taiwan reached
14.76 million, or 64.5% of the total population as of 2007, and is expected to reach 17.85
million by 2010. Thanks to its highly developed IT infrastructures, Taiwan shows a
relatively good broadband diffusion rate.

(Unit : NT$)
General Phone General Phone Mobile Phone Internet
Internet Service Fee
Activation Fee Service Fee Service Fee Installation fee
3,000 1.6/3 minutes 6/minute 1,700 798~1,380/month
(US$ 91.3) (US$ 0.05) (US$ 0.18) (US$ 51.7) (US$ 24.3~41.9)
Source : Chunghwa Telecom
Investment System
(1) Investment Law
□ Rules on Foreign Investment Rules, and Rules on Industrial Advancement Promotion
- Since 1991, the Taiwanese government has implemented "Rules on Industrial

Advancement Promotion" with the goal of promoting domestic and foreign investment.
This policy will come to an end in 2009, and, from January 2010, new "Rules on
Industrial Innovation" will be implemented.

- Under the "Rules on Industrial Innovation", subsidies or support for industrial innovation
activities will be provided, the distribution and management of tangible assets will be
promoted, and industrial human resources will be further fostered. Furthermore, support
and guidance will be provided with regard to the promotion of industrial investment, the
creation of a sustainable industrial development environment, taxation incentives, the
installation and management of industrial complexes, the installation and management of
exclusive industrial ports and wharfs, and the expansion of operation headquarters and
factories.
- In general industries, investment by foreigners and Chinese people residing overseas is

either limited or forbidden in order to protect domestic industries.
․Forbidden sectors : Postal and remittance services, radio and TV broadcasting, leisure
and service businesses, etc.
․Limited sectors : Agricultural and livestock industries, fisheries, air transportation, gas
and electricity supply, etc.
□ Taiwan's Investment Promotion Agency
Agency Taiwan External Trade Development Council (TAITRA)

Legal status Foundation
Established as Taiwan's trade promotion agency in 1970 and the Business Alliance
History
Section was established in January 2004.
Operated within the Strategic Marketing Department, the Business
Organization
Alliance Section undertakes to promote investment.
The MOEA's investment business office serves as a policy-maker,
Goal and method of
while the TAITRA conducts investment promotion independently of or
investment promotion
in cooperation with the investment business office.

<Taxation Incentives>
Category Description
- 30% corporate tax reduction on the R&D investment expenditure amount is provided
for 5 years starting from the year in which investment commences.
R&D incentives - Costs incurred by new product R&D, improvement of production technologies,
improvement of labor management skills, and improvement of manufacturing
processes.
- Investment costs for fostering talented people
: Costs incurred in the training and educating of employees in relation with company
Fostering human
work.
resources
- 30% corporate tax reduction on the costs incurred by fostering human resources is
provided for 5 years starting from the year in which investment commences.
In the event that a foreign company or a foreign company's Taiwanese branch
Incentives for the establishes an international logistics and distribution center directly or through a
establishment of Taiwanese company in a bid to store or simply to process products for sale in Taiwan
international or for export, the corresponding corporate tax is exempted. (Under the rules on
logistics centers industrial advancement promotion, corporate tax was exempted only on domestic sales
in Taiwan.)
Corporate tax of 20% is basically imposed on the establishment of operations
Incentives for the headquarters. However, corporate tax is exempted on any income and royalties
establishment of generated by the provision of services or R&D to related overseas companies, as well
operations as on the revenue from investment in related foreign companies and any gain from
headquarters disposal thereof. Also, a corporate tax incentive of 15% may apply. However, other tax
incentives are not provided.

3 Malaysia
- In Malaysia, State Economic Development Corporations (SEDCs), Regional Development

Authorities (RDA), port authorities and city governments operate some 200 industrial
complexes.
- Malaysia does not discriminate favorable conditions between foreign and domestic
companies. Certain industrial complexes are occupied by foreign companies, although no
complexes are exclusively occupied by foreign companies.
◦ Free Zones
- Free Zones (FZs) : Zones which the Finance Minster declares according to the Free Zone
Act enacted in 1990. FZs are being operated for companies which
manufacture or assemble export products for the purpose of
promoting trade mainly through transit ports.
- Free Industrial Zones (FIZs) : FIZs not only provide streamlined customs clearance
procedures to exporters, but also allow the duty-free
importation of raw materials, parts, machines and
equipment for use in manufacturing processes, and
streamlined export procedures for finished products.
Malaysia now has 18 FIZs in operation.

<Industrial (Factory) Land Purchase and Rental Costs by Region>

(Unit : RM)
Factory Land Cost
Region
Purchase Cost (per ㎡) Yearly Rental Cost
Penang 134.2~231 (US$ 40.3~69.4) 10,760~12,912/ha (US$ 3,231.2~3,877.5)
Selangor 77~275 (US$ 23.1~82.6) 1,500~21,095/ha (US$ 450.5~6,334.8)
Negeri Sembilan 66~220 (US$ 19.8~66.1) 1,976.84~7,700/ha (US$ 593.6~2,312.3)
Light industries 1,600/ha (US$ 480.5)
Johor 88~242 (US$ 26.4~72.7)
Heavy industries 2,400/ha (US$ 720.7)
Under 2ha 15/100m² (US$ 4.5)
Pahang 33~121 (US$ 9.9~36.3)
Over 2ha 10/100m² (US$ 3)
Source : Malaysian Industrial Development Authority (MIDA)
Note : 1) 1acre = 4,047m²
2) 1ha = 10,000m²
3) US$ 1 = RM 3.33 (Average exchange rate of 2008)
◦ Rental Costs for Commercial Offices
- Kuala Lumpur City Centre (KLCC) charges an office rental fee of RM 66~88 (US$
19.8~26.4) per m², while Kuala Lumpur charges an office rental fee of RM 44~66 (US$
13.2~19.8) per m². However, with further office space covering 88 million m² scheduled to
be supplied in 2011 and 2012, rental costs are expected to fall.

<Commercial (Office) Rental Costs by Region (per ㎡)>
Location RM US$
Kuala Lumpur 54~165 16.2~49.5
Petaling Jaya, Selangor 38~48 11.4~14.4
Seremban, Negeri Sembilan 18.8~26.9 5.6~8.1
Johor Bahru, Johor 17.2~30.1 5.2~9
Georgetown, Penang 16~40 4.8~12
Kuantan, Pahang 13~27 3.9~8.1
Kota Bharu, Kelantan 9.5~35.5 2.9~10.7
Source : CH Williams, Talhar & Wong․Collier Jordan Lee & Jaafar
Note : The above rates are the approximate monthly rental costs per m² including administrative costs
On Saturdays, civil servants
do not work, while the
48 hours 60 days 10 days
employees of certain private
companies do
Source : Employment Act 1955
Sharing Ratios
Insurance Purpose
Employer Employee
Social Security To protect workers from accidents or 1.25% of the
-
Organization (SOCSO) occupational diseases at work. basic salary
Under the Employees Provident Fund Act 1991
Employees Provident 13% of the 8~11% of the
(Act 452), the fund is designed to provide certain
Fund (EPF) basic salary basic salary
pension benefits to workers after retirement..
General companies insure employees
Varies depending on the
Health Insurance with insurance companies to provide
company
medical service benefits.
Source : Employees Provident Fund (KWSP), Social Security Organization (Perkeso), and insurance companies

□ Labor Power
◦ Working Population Ttrends
- Malaysia has a working population of 10 million, which is relatively low, but foreign
workers from Indonesia, Philippines, and Myanmar number about 3 million.

2006 2007 2008
10,893 10,538 10,820
Source : Malaysian Statistical Office
- Over 80% of Malaysia's population are high school graduates, with the number of higher
educated people remaining low. Public universities set aside certain quotas for Malays,
making it very difficult for members of ethnic minority groups to enter them, which
prompts many people of Chinese origin to study in the UK or Australia.

(Unit : people)
Education Level Graduate Population Ratio (%)
High School Graduates 442,936 82
University & College Graduates 86,434 16
Master's Degree & PhD Holders 10,653 2
Source : Ministry of Higher Education (MOHE), Ministry of Education (MOE), The Star
□ Wage Levels
- Malaysia does not define the minimum wage. Employees start out on low wages at the
initial stage, but their wages increase sharply as they become medium-level employees.
The great majority of employees can communicate in English, and experienced employees
transfer to overseas companies in the UK, Australia, and other English-speaking countries,
leading to a shortage of manpower and a rise in the wages of middle-class employees.

<Average Monthly Wages by Education Level>
(Unit : RM)
High School Graduates 778 (US$ 233.6)
University & College Graduates 2,025.5 (US$ 608.3)
Master's Degree & PhD Holders 2,863.8 (US$ 860)
Source : Malaysian Employers' Federation (MEF)

(Unit : RM)
High-ranking staff (executives) 8,325 (US$ 2,500)
Middle managers (general managers) 5,000 (US$ 1,501.5)
Office Elementary managers (managers and assistant managers) 3,000 (US$ 900.9)
New employees (university graduates) 2,000 (US$ 600.6)
New employees (high school graduates) 1,200 (US$ 360.4)
Skilled workers 2,797 (US$ 840)
Production
Unskilled workers 825 (US$ 247.7)
Source : MEF, Jobstreet

(Unit : RM)
Basic metal products 8,105 (US$ 2,434)
Manufacturing Electricity and electronics 8,755 (US$ 2,629)
Machines 4,006 (US$ 1,203)
Finance, insurance 10,543 (US$ 3,166)
Services Transport and warehousing (logistics) 10,803 (US$ 3,244)
Wholesale and retail (distribution) 8,728 (US$ 2,621)
Total 9,627 (US$ 2,891)
Source : MEF

□ Labor Disputes
- Few labor disputes occur in Malaysia, and many of the disputes that do take place are
settled before the Labor Ministry intervenes.
- Use of violence in labor disputes is very rare, and strikes are legally forbidden.
<Labor Disputes>
2006 2007
Number of workers involved in disputes 14,579 20,354
Number of disputes seeking arbitration 333 302
Source : Industrial Relations Department, MOHR
Note : 2007 is the latest data
□ Taxation
- Corporate tax was lowered from 28% to 27% in 2007, to 26% in 2008, and to 25% in 2009.
There is no additional tax reduction plan in the near future.
Taxes Tax Rates (%)

Corporation 25%
Income tax 1~27%
Individual
※ In the case of an annual taxable income of over RM 16,667 (US$ 5,005)
none
Residents tax
※ Realty ownership tax, dubbed Quit Rent, is imposed, but this varies according to the region
none
VAT
※ 10% sales tax, and 5% service tax in certain businesses
Tariff 0~60%
Source : Inland Revenue Board, Customs Department

- Malaysia is a member country of the WIPO, as well as a signatory to intellectual property

right accords such as the Paris Convention and the Berne Convention, and the WTO-led
TRIPs (Agreement on Trade Related Aspects of Intellectual Property Rights). Thus, the
Malaysian Act on Intellectual Property Rights complies with international standards, and
proper protection is provided to domestic and foreign investors in this regard.
- Despite the government's efforts to protect IPRs, illegal copies of DVDs (movies) and CDs,
fake brand-name bags are still being sold in the black markets, and tighter crackdowns
have yet to be enforced (disputes on IPRs have not been disclosed).
◦ International Patents Application
- Applications for domestic patents surged in 2008 from 2006, but activities aimed at
stimulating technology development have yet to be initiatied.
<Patents Application>
(Unit : patent)
2006 2008
International Patents Application (WIPO) - 174
Domestic Patents Application 34 200
Source : PCT Yearly Review 2008 (WIPO), Intellectual Property Corporation of Malaysia
- Malaysia has seven harbors, namely Port Klang, Penang Port, Johor Port in Pasir Gudang,
Tanjung Pelepas Port, Kuantan Port, Kemaman Port, and Bintulu Port. The Bintulu Port is
the country's first dedicated liquified gas port, while Kemaman Port serves as a supply
base for petroleum companies.

- Malaysia is a crossroads of Southeast Asia, making its location important, and offers such
geographical attractions as a trans-shipment center.
- Kuala Lumpur International Airport in Sepang, Selangor boasts an annual handling
capacity of 25 million passengers and over 650,000 tons of cargoes. Other international
airports include Penang International Airport, Langkawi International Airport, and Johor
International Airport in the Malay Peninsula, Kota Kinabalu International Airport in
Sabah, and Kuching International Airport in Sarawak.
◦ Railway
- The state-owned railway operator, Keretapi Tanah Melayu Bhd (KTM) operates a railway
line across the Malay Peninsula from the northern terminal in Butterworth to Johor in the
southern region, as well as to Pasir Gudang and Singapore. The northern railway network
connects to the port facilities of Penang Island.
(6) Public Services
- Malaysia offers low electricity fees and ample electric power. Home electricity fees
normally range from RM 80~300 (US$ 24~90.1), and vary according to the amount of
energy consumed.
- Malaysia's waterworks services are good and very cheap. Water service charges generally
amount to approximately RM 33.3 (US$ 10) per month.

(Unit : RM)
Major Public Services Costs Criteria
6.6~66 kwh 600 (US$ 180.2)
Electricity kwh/month
Additional rate 0.28 (US$ 0.08)
611 mmbtu
9,164 (US$ 2,752)
Gas (minimum consumption) mmbtu/month
Additional rate 15 (US$ 4.5)
0~35m³ 2.07 (US$ 0.62)
Waterworks Over 35m³ 2.28 (US$ 0.68) m³
Minimum cost 36 (US$ 10.8)
Petroleum 1.80 (US$ 0.54) Liter (ℓ)
LPG 1.75 (US$ 0.53) kg
Source : Tenaga National Berhad, Gas Malaysia, MIDA
Note : 1 mmbtu (million British thermal units) = 28.26m³
(7) Establishment of Corporations and Aquisition of Realty
◦ Corporation Establishment Procedure
- A foreign company is required to establish a cooperation through a legal and accounting

firm.
- Any foreign company wanting to operate or establish a business in Malaysia should

register with the Cooperative Commission of Malaysia (CCM). The registration has the
same procedure as local corporation registration, and applicants should fill in Form 13A
and submit it along with RM 30 (US$ 9) to the CCM in Kuala Lumpur or other branches
of the CCM in Malaysia. The application is approved upon acceptance of the proposed
company name, and that company name is then reserved for three months.
- After obtaining approval, the applicant should submit to the CCM such documents as the
copy of the corporation establishment certification issued in the company's home country,

the company's articles of association and supplementary articles, the list of directors along
with their personal details, the certificate or power of attorney for the proxy residing in
Malaysia, and a legal report (Form 80).
- All foreign companies should, within one month of establishing or commencing a

business in Malaysia, file an application for registration with the CCM, and should notify
CCM of the details of the offices which they have registered using the prescribed form.
- Currently, there are no laws pertaining to foreigners' acquisition of realty, but the Foreign
Investment Commission has issued relevant guidelines. Taking effect as of July 2009, a
transaction in excess of RM 20 million (US$ 6.006 million), and which is related to the
interest of the government or the Bumiputra (a Malay race), should obtain the approval of
the Economic Planning Unit. An acquisition of commercial, agricultural or industrial land
worth more than RM 500,000 (US$ 150,000) should comply with the regulations of the
relevant ministries.
- Foreigners are relatively free to purchase realty, but to prevent the purchase of low-priced
houses for general citizens, which would lead to a general rise in house prices, residential
housing purchases should exceed RM 250,000 (US$ 75,000), while non-residential realty
purchases should exceed RM 500,000 (US$150,000). The supply of premium apartments has
been activated, making residential costs for foreigners no higher than in other Southeast
Asian countries, and many retired immigrants are buying such apartments.

Living Environment
- As the population's income is relatively high, Malaysia continues to build and supply
premium apartments, but no residential areas intended exclusively for foreigners are
available.
- Realty agency commissions are paid to realty agencies by lessors, so lessees do not need
to shoulder the fees.
- Higher rental fees are charged for apartments with views of Kuala Lumpur City Center
(KLCC), but rental fees vary greatly depending on whether apartments are furnished or
not.
<Residential Costs>
(Unit : RM)
Monthly Detached House Realty Agency
Region Monthly Apartment Rental Cost Security Deposit
Rental Cost Commission
4,000~8,000 5,000~18,000
Mont Kiara
(US$ 1,201.2~2402.4) (US$ 1,501.5~5,405.4) 1 month of 2~3 months of
3,000~6,000 4,000~18,000 rental cost rental cost
Ampang
(US$ 900.9~1,801.8) (US$ 1,201.2~5,405.4)
Source : MIDA, i-Property

- Malaysia offers private and public hospitals with relatively good facilities. Foreigners
mainly use the private hospitals. General hospitals offer low-price medical services, but
charge more to foreigners.
- Malaysia's government is pushing to foster the medical tourism sector, and is building
new hospitals in a bid to improve the country's medical services. As such, foreigners do
not experience any great inconvenience with regard to medical services.
<Hospitals Available for Foreigners>
Region Hospital Telephone

Pantai Medical Center 603-2296-0888
Kuala Lumpur
Glen Eagles Intan Medical Center 603-4257-1300
Ampang Puteri Specialist Center 603-4270-2500
Selangor
Damansara Specialist Hospital 603-7722-2692
Glen Eagles Penang 604-227-6111
Penang
Penang Adventist Hospital 604-226-1133
Source : Hospital websites, Websites containing information for resident employees
- Foreigners can use the medical insurance system in Malaysia, where global insurance
companies such as ING are operating. Normally, employers provide insurance premiums,
and individuals can also additionally subscribe to insurance; provided that foreign workers
who are on a 3-month visa or working as the engineer are not allowed to subscribe to the
insurance services.
- Medical premiums are roughly RM 500~1,000 (US$ 150.2~300.3) per year, although they
vary according to conditions.

- Malaysia's public transportation system is not well-developed. There are plans to expand
the light rail system, but public transportation systems alone cannot properly cover the
whole connection, causing inconvenience. As such, many people use private cars,
motorcycles, and taxis.
- Public transportation fares are cheap, although they rose by 30% to reflect the real price
level (as of August 1, 2009).
- Taxi fares consist of a basic charge plus an additional charge of RM 0.10 (US$ 0.03) every
115m traveled or every 21 seconds.

(Unit : RM)
Subway Bus Taxi Railway
Light-rail 0.7~2.8 (US$ 0.21~0.84) 2 3 1~7
Mono-rail 1.2~2.5 (US$ 0.36~0.75) (US$ 0.6) (US$ 0.9) (US$ 0.3~2.1)
Source : RapidKL, KTM Berhad
□ Foreign Schools
- Malaysia offers good public and private education centers. Not only foreign schools but
also universities offer TWINNING programs which enable the sharing of credits with
overseas universities, thus giving them internationalized status.

<Foreign Schools by Region>
Kuala Lumpur Selangor Penang Country (Total)

Schools 10 13 6 48
Source : MIDA
- Foreign schools' tuition fees are expensive to the extent that only upper-class or rich Malays
can afford to send their children to them. In the case of the ISKL (International School of
Kuala Lumpur), Malay students account for 11% of the total.

(Unit : RM)
Category ISKL Mont Kiara’s International School
Admission fee 800 (US$ 240.2) 650 (US$ 195.2)
Re-enrollment fee 5,000 (US$ 1,501.5) 3,450 (US$ 1,036)
Preparatory School Reception 2,000 (US$ 600.6)
Tuition fees 20,198 (US$ 6,065.5)
Prep Senior-Grade12 22,500 (US$ 6,756.8)
Elementary school 47,250 (US$ 14,189.2) 58,157 (US$ 17,464.6)
Middle school 54,000 (US$ 16,216.2) 65,073 (US$ 19,541.4)
High school 59,000 (US$ 17,717.7) 71,990 (US$ 21,618.6)
Source : ISKL, Mont Kiara's International School
Note : Prep Senior-Grade 12 means kindergarten to high school
□ Development Level of Communication System
- The mobile phone penetration rate has exceeded 100%, and quality mobile services are
provided.
- The Internet speed is relatively slow because the existing telephone cable networks are
being used. The government is pushing to increase the home Internet penetration from
25% to 50% by 2010 by expanding the optical cable infrastructures, which will ultimately
improve the Internet speed.

(Unit : RM)
General Phone General Phone Mobile Phone Mobile Phone Internet Internet
Activation Fee Service Fee Subscription Fee Service Fee Subscription Fee Service Fee
The first 2 minutes
Security Deposit, : 0.08 (US$ 0.024)
Security Deposit :
etc.: 0.1~0.3/minute 75~100 20~100/month
Beyond 2 minutes 1,300
1,100 (US$ 0.03~0.09) (US$ 23.4~30) (US$ 6~30)
: 0.04/minute (US$ 390.4)
(US$ 330.3)
(US$ 0.012)
Source : MIDA, Streamyx
Investment System
(1) Investment Law
□ Industrial Coordination Act 1975 (ICA)
- The ICA was enacted to prompt the development and growth of Malaysia's manufacturing
sector. Under the Act, a manufacturing project with capital in excess of RM 2.5 million
(US$ 751,000) or with more than 75 employees is required to obtain approval as a
manufacturing business. Applications should be submitted to the MIDA while approval is
provided by the Malaysian Ministry of International Trade and Industry (MITI).
□ Malaysia's Investment Promotion Agency
Agency Malaysian Industrial Development Authority (MIDA)

Upper Agency Malaysian Ministry of International Trade and Industry (MITI)
Workforce 800 people (civil servants)
Investment promotion, support for investment ventures, approval for domestic and foreign
companies' manufacturing projects, approval for resident foreign workers' visas, provision of
Major Duties
incentives. Also, the MIDA, whose officials are dispatched by various ministries, provides
comprehensive consulting services.
Manufacturing, high technology, bio-technology, energy, medical equipment, logistics
Key Areas
centers, and R&D centers.

□ Foreign Investment Incentives

- Direct tax incentives include partial or full exemption from payment of income tax for a
certain period of time, while indirect incentives include exemption from payment of
import tariffs, sales tax, and domestic consumption tax.
<Areas Where Incentives Are Available>
Manufacturing, agriculture, bio-engineering, tourism, environmental management,

technologies which reduce energy consumption, renewable energy resources, generation of
renewable energy for public consumption, R&D, medical equipment, training and
education, approved service projects, marine transportation and transportation, multimedia
super corridor, information and communication technologies, knowledge-based activities,
manufacturing-related services, operations headquarters, international procurement centers
and regional logistics centers, and representative offices and regional offices.
□ Major Incentives for Manufacturing Companies
- Major incentives for the manufacturing sector include the granting of "pioneer status" and
investment tax allowance (ITA). Recommended activities or recommended products are
selected according to their value-added, technological innovation, industrial linkage levels.
◦ "Pioneer Status" Incentive
- Companies awarded with "pioneer status" are partially exempted from payment of income
tax for 5 years. Only 30% of the prescribed income tax (calculated by deducting profitable
expenditures and capital from total income) is imposed, and the tax exemption period is
5 years from the day on which production volume reaches 30% of production capacity.
- To promote investment in such recommended areas as the states of Perils, Sabah, and
Sarawak, and the designated eastern corridors in the Malay Peninsula(Kelantan, Terengganu,

Pahang, and Mersing in Johor), companies located in these regions may apply for "pioneer
status", which is accompanied by full exemption from payment of income tax for 5 years.
Applications for this incentive will be accepted up until December 31, 2010.
- Applications for pioneer status should be submitted to the MIDA.
◦ Investment Tax Allowance (ITA) Incentive
- Companies can also apply for the ITA, other than "pioneer status" incentive. ITA companies
can receive a 60% tax credit on deductible capital expenditures incurred within 5 years of
the first deductible capital expenditure(relating to factories, machines, facilities, and
equipment used for the approved project). Companies eligible for the ITA may also offset
up to 70% of their income tax every year by the deductible amount, and transfer an
unused deductible amount to the next year. The remaining 30% of their income is taxed at
the current corporate tax rate.
- Companies located in such recommended regions as the states of Perils, Sabah, and
Sarawak, and the designated eastern corridors in the Malay Peninsula may apply for a
100% investment tax deduction on deductible capital expenditures incurred within 5 years.
Using this deductible amount, they may offset the whole of their income for every tax
year. Applications for this incentive will be accepted up until December 31, 2010.

4 Singapore
- Singapore does not differentiate domestic companies and foreign investment companies.
There exists districks where industrial complexes are concentrated, but does not implement
separate incentive programs for these industrial complexes or any particular zones.
◦ Free Zones
- Singapore itself is a free trade zone, and thus does not operate separate Foreign Economic
Zones, or individual or complex Foreign Investment Zones. However, Singapore operates
Free Trade Zones for trans-shipment where manufacturing is strictly banned.
- Sales and rental costs for industrial and factory sites are based on market prices,
regardless of domestic or foreign corporations.
- Industrial land : Provided on the basis of open bid prices (www.place2lease.com).
- Apartment-style factory rental costs : Jurong Town Corporation(JTC), the government

agency responsible for the creation of industrial
complexes, assesses and announces market prices.
- The submittal of a security deposit applies equally to domestic and foreign investors, and
3-year rental requires a cash deposit consisting of three months' rent (the cash deposit can
be replaced by a bank guarantee or insurance).

<Industrial (Factory) Land Purchase and Rental Costs by Complexes (per ㎡)>
(Unit : S$)
Complex Purchase Costs Rental Costs
Tuas Biomedical Park 169~213 (US$ 117.4~147.9) 10.32~13.48 (US$ 7.2~9.4)
Paya Lebar IPark 759 (US$ 527.1) 45.90 (US$ 31.9)
Changi/Airport Logispark 245~490 (US$ 170.1~340.3) 15.30~26.78 (US$ 10.6~18.6)
Source : Place2Lease
Note : 1) US$ 1 = S$ 1.44
2) Purchase costs are based on a period of 30 years, whereas rental costs are based on a yearly charge for
a period of 3~30 years after occupancy.
- Purchase and rental costs for commercial buildings vary greatly according to regions, and
the rental cost in downtown areas is generally about twice the amount charged in other areas.
<Average Commercial (Office) Rental Costs (per ㎡)>

(Unit : S$)
Year Downtown Areas Other Areas
2nd Quarter, 2008 150.7 (US$ 104.7) 71.28 (US$ 49.5)
2nd Quarter, 2009 116.6 (US$ 81) 55.88 (US$ 38.8)
Source : Urban Redevelopment Authority, Singapore
□ Labor Laws
- The Labor Act applies to all workers, but regulations on working hours (including overtime
work), leave, holidays, or sick leave apply only to workers whose monthly salary is under
S$ 2,000 (US$ 1,388.9), while in other cases such conditions are determined according to
individual contracts with employers.
- Singapore offers a very flexible labor market, making it easy to lay off even regular
workers by giving a certain amount of prior notice, and employers are not required to
convert non-regular workers into regular employees after a certain period. No minimum
wage regulations are in force at present.

◦ Working Conditions
- The Employment Act specifies a standard working time of 8 hours per day and 44 hours
per week. Any time in excess of these working hours is considered overtime, the
compensation for which is more than 1.5 times the normal wage.
44 hours 12 weeks 11 days Being implemented
□ Social Insurance System
- The CPF (Central Provident Fund) is a government-led compulsory saving system for
social welfare. Under the CPF, workers are required to save up to 34.5% of their salary
with the state-led fund; provided that the costs are shared by employers and employees
according to a certain ratio. The targets of this system are those employees who reside in
Singapore or Malaysia and who provide their labor in Singapore. This category includes
self-employed people and company executives.
□ Labor Power
- Of the total population of 4.8 million people, 60% are members of the working
population. At just 2.0~2.5%, Singapore's unemployment rate is very low.

2006 2007 2008
2,594 2,710 2,940
Source : Ministry of Labor, Singapore

- Compared with Korea's school system, which essentially comprises of elementary, middle
and high school and university, Singapore's education system offers a great diversity of
courses.
- Due to the flexible nature of the system, overall statistics are not announced regarding the
number of college or university entrants among graduates of high school-level education
institutes.
- However, graduates from polytechnic colleges and universities, and holders of master's
and PhD degrees constitute a significant portion of Singapore's population of 4.5 million,
suggesting that the country's overall level of education is very high.
Education Level Graduate Population

College (Polytechnic) Graduates 20,341
University Graduates 11,772
Source : Statistics Singapore
□ Wage Levels
- As the demand for labor continues to exceed the supply, wages continue to rise.
Singapore requires compliance with the National Wage Council's guidelines on yearly
wage negotiations between labor and management, thereby appropriately controlling any
rise in wages.
◦ Average Wages by Occupation
- Jobs requiring specialist knowledge and knowledge of advanced technologies have seen
greater wage hikes compared to other jobs.

(Unit : S$)
Increased ratio compared to
Occupation Average Monthly Wages
10 years before (%)
Managers 6,400 (US$ 4,444) 1.6
Professionals 4,405 (US$ 3,059) 1.8
Associate Professionals & Technicians 3,000 (US$ 2,083) 1.4
Clerical Workers 1,960 (US$ 1,361) 1.5
Sales & Service Workers 1,849 (US$ 1,284) 3.6
Production Craftsmen 2,137 (US$ 1,484) 1.0
Plant & Machine Operators 2,009 (US$ 1,395) 3.5
Cleaners, Labourers & Related Workers 975 (US$ 677) - 0.9
◦ Average Wages by Industry
- The average monthly wage across the entire range of industries in Singapore was S$ 3,977
(US$ 2,761.8) in 2008, up 5.4% from the previous year. Due to a chronic lack of labor,
wages have continued to rise over the last few years.

(Unit : S$)
Industry 2006 2007 2008
Manufacturing 3,618 (US$ 2,512.5) 3,764 (US$ 2,613.9) 3,955 (US$ 2,746.5)
Wholesale and retail 3,101 (US$ 2,153.5) 3,262 (US$ 2,265.3) 3,441 (US$ 2,389.6)
Transportation and
Services 3,525 (US$ 2,447.9) 3,797 (US$ 2,636.8) 3,989 (US$ 2,770.1)
warehousing
Financial services 6,291 (US$ 4,368.8) 6,768 (US$ 4,700) 7,153 (US$ 4,967.4)
Construction 2,517 (US$ 1,747.9) 2,646 (US$ 1,837.5) 2,861 (US$ 1,986.8)
Total 3,554 (US$ 2,468.1) 3,773 (US$ 2,620.1) 3,977 (US$ 2,761.8)

□ Labor Disputes
◦ Labor-Management Relations (Industrial Relation Cap)
- Singapore offers stable labor-management relations due to the government's policy of

strong intervention.
◦ Labor Disputes
- Singapore have very stable labor-management relations, and has not seen a single strike
since the 1980s.
<Labor Disputes>
(Unit : dispute)
Category 2006 2007 2008
Labor disputes 163 133 118
Cause (wage) 74 82 53
Cause (others) 89 51 65
Total Arbitrations 16 16 11
Sucessful Arbitrations 15 14 10
Source : Yearbook of Statistics, Singapore, 2009
□ Taxation
- Singapore's taxes are classified into income tax, corporate tax, tariffs that are under the
National Tax Services' control and taxes for other special purposes such as automobile tax.

Taxes Tax rate (%) Description

- Progressive tax rates (0~20%) apply, with the tax rate varying greatly
according to the size of income. However generally normal wages are
Individual subject to these tax rates.
8.5~17
Income Tax - Taxes are imposed on the income of those who reside in Singapore for
over 183 days in a year. However, those who have resided in Singapore for
over 183 days in two years are also classified as tax residents.
Corporate Taxes are imposed on those companies whose business operation is
18
Income Tax conducted in Singapore.
Those companies which generate annual sales of over S$ 1 million (US$
Goods & 694,000) should register as a GST business operator. Taxes are imposed on
7
Services Tax goods and services supplied in Singapore and goods imported into the country
(collected by the Customs Service).
- Singapore began improving its protection of intellectual property rights in the late 1990s,
leading to its removal from the US Special 301 Watch List in 2001. However, such
problems as the use of pirated optical disks and software, the trans-shipment of pirated
products through Singapore, and the complicated procedure of removing pirated materials
from the Internet have been addressed over the last few years as one of the conditions of
a free trade agreement with the USA.
◦ Intellectual Property Office of Singapore (IPOS)
- Singapore's IPOS, launched as the Registry of Trade Marks and Patents, is under the
control of the Ministry of Justice. The IPOS was established on April 1, 2001, according to
the Intellectual Property Office of Singapore Act.

◦ Intellectual Property Rights Disputes
- Infringements of copyrights and trademarks have been declining consistently in recent

years.
<Intellectual Property Rights Disputes>

(Unit : dispute, S$)
Year Copyright Infringements Trademark Infringements Total Converted Value
2000 308 146 454 16,310,436.3 (US$ 11,326,691.9)
2004 126 190 316 12,665,969 (US$ 8,795,811.8),
Source : Singapore Police Force
Note : 2004 is the latest data
◦ International Patent Application
- According to the WIPO's PCT international patent applications, Singapore files 150 patent
applications each year, which is very low compared with Korea's annual average of more
than 5,000 patent applications.
- This suggests that Singapore seldom files its IPR applications overseas.

(Unit : patent)
2002 2004 2006 2008
130 149 133 158
Source : PCT Yearly Review 2008 (WIPO)
- The transportation and logistics industries account for 9.6% of Singapore's GDP, for a
workforce of 110,000. Over 9,000 logistics companies are registered, and many of them are
headquartered in Singapore. Furthermore, of the world's top 25 third-party logistics (3PL)
operators, 17 are located in Singapore.

- Singapore ranks first globally in terms of cargo handling volume in the logistics category,
and boasts the world's second largest container port, Asia's No. 1 car shipping port. In
the transportation category, Singapore possesses 70% of the world's marine shipping and
handling warehouses, and occupies 70% of the world's jack-up rigs markets.
- According to the World Bank's Logistics Performance Index (2007), which was surveyed by
800 worldwide international cargo transportation operators, Singapore was ranked as the
world's No. 1 logistics hub, outstripping European ports such as the Netherlands and
Germany. This may be attributed to Singapore's efficient and stable supply chain, excellent
price competitiveness, and information network called Portnet.
<World Bank Shipping Survey>
Ranking Country Score

1 Singapore 4.19
2 The Netherlands 4.18
3 Germany 4.10
4 Sweden 4.08
5 Austria 4.06
6 Japan 4.02
7 Switzerland 4.02
8 Hong Kong, China 4.00
9 United Kingdom 3.00
10 Canada 3.92
Source : World Bank
- Singapore's Changi Airport handled 1.9 million tons of air cargo in 2008. It operates 4,000
flights a week, connecting to 182 cities in 57 countries, making it Asia's fourth-largest air
cargo handling airport.

(6) Public Services
- Singapore is well equipped with electricity, waterworks and other infrastructures, and
offers high-quality public services.

(Unit : S$)
Electricity 0.25 (US$ 0.17) kwh
Gas 0.19 (US$ 0.13) piped gas/kwh
Waterworks 1.17~1.4 (US$ 0.81~0.97) m³
Petroleum 1.717~1.87 (US$ 1.19~1.29) Liter(ℓ)
LPG 32.5 (US$ 22.56) 12.7kg cylinder
Source : PUB, etc.
- Among the business types allowed in Singapore are business firms, limited liability
partnerships (LLP), and companies.
<Corporation Types>
Category Detailed category Remarks

- Sole Proprietorship
Business Firm Non-corporation, unlimited liability
- General Partnership
LLP - Combination of business firm and company
- Company Limited By Shares Corporation, limited liability
Company - Company Limited By Guarantee (provided that an unlimited company undertakes
- Unlimited Company unlimited liability)

◦ Procedures and Costs for Corporation Establishment
- Anyone who wants to establish a company must follow two steps, company name
approval and establishment procedure. Company registration procedures and the required
documents are complicated, so it is better to use lawyers or certified public accountants to
complete the procedures. It takes 2~4 days for company name approval; 1~2 weeks to
complete the establishment procedures; and an additional 2~4 weeks in the event that it is
necessary to refer to the relevant agencies.
- The relevant agency for establishing a local corporation or branch is the Accounting &
Corporate Regulatory Authority (ACRA).
① An applicant submits an application along with the company name(s) *

⇩
② The ACRA checks that the same company name does not already exist
⇩
③ The ACRA notifies approval or non-approval of the company name
- If approved, the company name will be preserved for 2 months
- If disapproved, the applicant must file a different company name
(If approved, the applicant should undergo the company registration procedure within 2 months)
⇩
④The applicant submits the documents for company establishment (registration) **
⇩
⑤ The ACRA appraises the documents and approves the registration
⇩
⑥ The applicant enters the company information
⇩
⑦ The ACRA issues certificate of incorporation
* Required document
- Application for the Approval and Reservation of Names for a Company to Be
Incorporated Under the Companies Act (Form 14)
- Fee : S$ 15 (US$ 10.4)

** Required documents
- Memorandum & Articles of Association
- Statutory Declaration of Compliance (Form 6)
- Certificate of Identity (Form 7)
- Consent to Act as Director and Statement of Non-Disqualification to Act as Director
(Form 45)
- Notice of Situation of Registered Office and Office Hours at Time of Registration (Form 44)
- Registration fee : In the case of an Limited Liability Partnership, the fee is S$ 300
(US$ 208.3) regardless of the size of capital.
- No particular limitations are imposed on foreigners' purchase of commercial buildings or

land, and the same law applies to both domestic and foreign nationals. However,
regarding the acquisition of residential realty, foreigners are subject to the Residential
Property Act.
- Foreigners, even if not holding denizenship, are not limited as regards the purchase of
private apartments or condominiums. However, the purchase of detached houses
including land by foreigners is limited, except for certain areas on Sentosa Island, and
requires prior approval from the government. Holders of denizenship may purchase a
detached house but only after obtaining prior approval.
- Detached houses may be purchased only for residential purposes, and the land area
should not exceed 1393.5m².

Living Environment
- Singapore's housing is generally classified into government HDB (Housing and

Development Board) apartments, and privately owned condominiums. There are few
detached houses. HDB apartments generally take the form of complexes equipped with
schools, stores, markets, clinics, entertainment facilities, and sporting facilities. Bus and
MRT networks are configured for access to these complexes.
- In principle, foreigners are not allowed to live in HDB apartments, but may reside in
them if the original occupants have left Singapore to live overseas for over 2 years, either
for work or study, after obtaining HDB approval.
- Condominiums may be purchased or rented freely by foreigners, and are normally

equipped with such amenities as swimming pools, snack food stores, tennis courts, and
club houses.
- The housing penetration rate stood at 90% in 2008, and the great majority of Singapore's
nationals (86%) live in HDB apartments.
<Residential Costs>
(Unit : S$)
Monthly Apartment Monthly Apartment Realty Agency
Security Deposit
Rental Costs (Two Rooms) Rental Costs (Three Rooms) Commission
2,800~6,000 4,500~9,500 One month's rent X
Paid by house owners
(US$ 1,944.4~4,166.7) (US$ 3,125~6,597.2) contracted years
Source : Buy Singapore (Realty magazine)

- Singapore offers generally good medical services. Hospitals are classified into national,
public, and private ones, and are equipped with advanced medical devices and superior
medical personnel.
- Singapore does not implement a national medical insurance system, but requires
individual nationals to reserve part of CPF with MediSave according to their age. Minor
medical service costs are paid from each individual's MediSave policy. Expensive medical
services can be covered by the selective insurance MediShield. Foreign medical insurance
is not allowed.
- Singapore is well equipped with a mass transportation system comprising subway lines,
buses and taxis. During rush hours, buses are operated at very short deployment intervals,
making them highly convenient, and also express buses are operated.
- Mass Rapid Transit (MRT), a major transportation system, runs from 5:30 am until
midnight. The purchase of rechargeable ez Link cards makes using the MRT very
convenient.

(Unit : S$)
Subway Bus Taxi
0.90~1.90 (US$ 0.62~1.32) 0.90~2.35 (US$ 0.62~1.63) 2.80 (US$ 1.94)

□ Foreign Schools
- In Singapore, 30 foreign schools are operated, including British, American, Canadian,

German, Japanese, French, Swiss and Dutch establishments.
<Foreign Schools by Curriculum>
Curriculum Foreign School

ISS International School
International
Overseas Family School (OFS)
United World College of Southeast Asia (UWC)
British
Tanglin Trust School
American Singapore American School (SAS)
Australian Australian International School
Canadian Canadian International School
German German European School

(Unit : S$)
Category SAS OFS
Kindergartens 25,450 (US$ 17,673.6) 18,000 (US$ 12,500)
Elementary Schools 30,600 (US$ 21,250) 20,000 (US$ 13,888.9)
Middle Schools 32,400 (US$ 22,500) 22,000 (US$ 15,277.8)
High Schools 34,400 (US$ 23,888.9) 25,000 (US$ 17,361.1)
Source : Expatriate Living Costs in Singapore (SICC)
Note : Such costs as the initial application fee, ELS, security guarantee, and facility service fees are not included.

- As of December 2008, Singapore boasted a home Internet broadband diffusion rate of

99.9%, outpacing Korea (92%), Hong Kong (83.8%), and Taiwan (76.8%). This figure
topped the government's goal - set in 2006 - of achieving 90% by 2015. This high rate of
Internet broadband diffusion is resulting from relatively small size of the country,
decreased service fees, a much improved Internet speed, the marketing efforts of the
service providers, and the support policy for people on low incomes .

(Unit : S$)
Application Application
53.50 42.80 59.90/month
(US$ 37.2) 29.43/quarter (US$ 29.7) 0.7/30 seconds 42.80 (US$ 41.6)
Installation (US$ 20.4) Basic fee (US$ 0.49) (US$ 29.7) ※Based on
53.50 9.80 15Mbps
(US$ 37.2) (US$ 6.8)
Source : SingTel, StarHulo, Expatriate Living Costs in Singapore (SICC) and Singapore KBC
Note : Mbps (Mega bit per second) refers to the Internet speed
Investment System
(1) Investment Law

- Singapore implements the Economic Expansion Incentives Act, which is similar to Koreas'
Foreign Investment Promotion Act, and serves mainly to specify incentives for foreign
investment companies.

□ Singapore's Investment Promotion Agency
Agency Economic Development Board

Workforce 507 personnel at home and abroad
- Budget : S$ 134,059,500 (US$ 93 million) ※ 2009 basis
Budget
- Procurement method : 100% provided from the MTI's budget
To promote Singapore's economic growth, expansion and development with a view to
Major duties
fostering Singapore as an international total business center
EDB owns and operates its subsidiaries such as EDB Investments Pte Ltd and Bio*one
Capital Pte Ltd according to the EDB Act.
Particulars
․ EDB Investments Pte Ltd undertakes EBD's joint investment
․ Bio*one Capital Pte Ltd supports the funding of bio industries
◦ Beneficiaries of Incentives
- Singapore does not discriminate between domestic companies and foreign investment
companies with regard to incentives for investment.
- Incentives are provided to cormpanies which introduce new technologies and new
processes, thereby improving productivity and advancing the industrial structure.
◦ Conditions for Incentives
- Detailed benefits by incentive are defined, but the door for negotiations with foreign
investors is kept wide open.
- Regardless of the time from which profits are generated, corporate and other tax breaks
are provided according to the provision of incentives by the EDB.
- On the basis of negotiations between foreign investors and the relevant authority,
specific details on tax breaks, subsidies and other investment incentives are determined.

- Based on the EDB industrial officials' comprehensive report on industrial analysis, technical
superiority, and contribution to the economy of Singapore, the appraisal committee
determines which incentives shall be provided, for how long and under what conditions.
- The industrial officials' appraisal of the economic effects and the feasibility of investment
is the most important factor in determining the provision of incentives.
◦ Major Incentives
- Singapore offers tax breaks as the main incentive, but, depending on the agenda, it may
also provide cash grant share investment by EDBI (EDB Investment Pte Ltd), and other
flexible incentives.
<Incentives for Industrial Development>
Category Conditions Incentive Description

- Projects accompanied by technologies and
expertise that are higher than the average
15-year tax exemption on revenues is
Pioneer Status level of domestic industries.
provided.
- Provided that no domestic companies
conduct similar activities.
- In cases where corporations engaged in
manufacturing and services invest in the - Under 13% tax rates apply
Development
execution of new projects with major - Tax breaks of up to 10 years are provided
and Expansion
economic ripple effects and in the (and may be extended for another 10
Incentive
advancement of new technologies. years).
- Over S$ 1 million (US$ 6.94 million)
Up to 100% of the investment amount is
Venture Capital In cases where loss in stake investment in
deducted from the taxable income with
Incentive venture capital occurs.
regard to the loss amount.
- 50% subsidies for the costs of training
in the operation of new facilities.
For activities involving the development and
Initiatives in - 70% support for R&D and training costs.
introduction of new technologies, processes,
New Technology - 70% support for education
and expertise.
- Support for the costs of equipment and
buildings.
- 100% one-year write-off on computers
and certain properties is allowed.
Accelerated - 33.3% depreciation on factory machines
Computers, automation facilities, industrial
Capital and other items of equipment is allowed
robots, etc.
Allowances for 3 years.
- 25-year depreciation on industrial
buildings is allowed.

<Incentives for R&D, Intellectual Property Rights, and Innovative Investment>

In cases where royalties are paid to
overseas companies with regard to All or part of withheld taxes is exempted
Approved Royalties
the introduction of advanced regarding royalties paid to non-residents.
technologies and expertise.
- Ordinary costs for relevant
manufacturing and services R&D A double tax deduction on R&D costs for
Double Deduction for
(excluding depreciation costs). commercial products is provided to
R&D expenses
- In cases where R&D activities are registered corporations.
conducted in Singapore.
<Incentives for Equipment and Technology Investment>

In cases where corporations engaged
A corporate tax deduction of up to 50%
Investment Allowance in manufacturing and services invest
of production facility investment is
Incentive in R&D, construction and other
provided.
approved projects within 5 years.
<Incentives for the Establishment of Operations Headquarters>

- Favorable tax rate of 15%
In the event that the headquarters' (up to 5 years)
decision-making authority, - In cases where international
Headquarters Programme employment size, paid-in capital, headquarters surpass the conditions
expenditure conditions, etc. meet of regional headquarters, a favorable
certain conditions tax rate and other customized
incentives are provided.

5 China (Beijing)
- Beijing offers a diverse range of industrial complexes including state economic and
technology development zones, high-tech science technology complexes, and municipal
economic development zones, but has no complexes intended exclusively for foreign
companies. However, subsidies are provided to facilities rented as headquarters following
relocation to or establishment in Beijing.
<Rental Costs in Industrial Complexes>
Beijing Economic and Zhongguancun Science

Tien Export Processing Zone
Technology Development Zone Park
Location Daxing District, Tongzhou District Shuyi District Zhongguancun
Area 39.8km² 2.726km² 28.3km²
Rental Cost
US$ 5.9~9.5 US$ 6.6 US$ 6.6~11
(m²/month)
Electronics and
Mobile communication, micro Software, network,
Major communication, bio medicines,
electronics, bio medicines, communication, computer,
industries optical․ machinery․electric
automobiles integrated circuits
power, advanced materials
Source : Beijing Investment Promotion Bureau
Note : Lands in development districts are currently sold through bidding
- Beijing divides industrial complexes into 9 classes, and applies different land prices
according to classes.

<Industrial (Factory) Complexes Land Price (per ㎡)>
(Unit : US$)
Land Class Basic Price (per ㎡)
1 165~248
2 138~171
3 121~143
4 83~126
5 61~94
6 43~71
7 31~45
8 21~33
9 13~23
Source : Beijing Municipal Bureau of State Land and Resources
◦ Land Purchase and Rental Costs of Commercial Land
<Commercial (Office) Purchase and Rental Costs by Region (per ㎡)>

(Unit : US$)
Region Purchase Price Monthly Rental Cost
CBD 5,124 20.58
Dong'erhuan Street 4,978 19.48
Dongchangan Street/Jian Guo Men 4,685 19.60
Jinrong Street 4,392 24.55
Yansha 5,800 19.99
Zhongguancun 3,660 18.50
Average 4,773 20.38
Source : DTZ
Note : As of 2009
□ Labor Laws
- Major labor laws include the Labor Act, the Labor Contract Act, and the Employment
Promotion Act.

◦ Layoff Regulations
- According to the Labor Act and the Labor Contract Act, employers must give prior notice
before dismissing employees, and unions are not allowed to lodge disagreement with
employers.
- In the event that an employer terminates the labor agreement, it must give prior notice to
the relevant union, which have the right to submit its disagreeing opinion on the matter
if such action is deemed to be unreasonable.
27 days
5 days 90 days Being implemented
※ As of 2009
Source : Beijing Human Resources and Social Security Bureau
- China offers five types of social insurances.

(Unit : %)
Sharing Ratios
Insurance Purpose
Employers Employees
Insurance for the elderly For retired life 20 8
Unemployment insurance For unemployment 1 0.2
Medical insurance For health 10 2
Accident insurance For injuries 0.48 -
Childbirth insurance For women's child delivery 0.5 -

□ Labor Power
- The figures for China's working population are based on the 2007 census, which is most
recent as of September 2009.

2005 2006 2007
Beijing China Beijing China Beijing China
448 77,877 453 78,244 479 78,645
Source : National Bureau of Statistics, Beijing Municipal Bureau of Statistics

Graduates Ratio (%)
Education Level
Beijing China Beijing China
High School Graduates 16 1,417 43.2 72
University Graduates 15 512 40.1 26
Master's Degree & PhD Holders 6 35 13 0.6
Source : National Bureau of Statistics
□ Wage Levels
- According to the National Bureau of Statistics' report for the first half of 2009, the national
average annual wage stood at CNY 14,639 (US$ 2,143.2, at the average exchange rate for
the first half of 2009 / US$ 1 = CNY 6.83), representing a year-on-year rise of 12.9%.

(Unit : US$)
High-ranking staff (executives) 3,416.7
Middle managers (general managers) 2,916.7
Office Elementary managers (managers․assistant managers) 1,083.3
New employees (university graduates) 333.3
New employees (high school graduates) 250
Skilled workers 416.7
Production
Unskilled workers 250
<Average Monthly Wages by Industry (2008)>

(Unit : US$)
Securities, Banks, Insurance 1,250
Telecommunication, IT 1,000~1,250
Clothing manufacturing
250
Machinery, Equipment, Construction
Electrical, Electronics 416.7
Source : Beijing Municipal Bureau of Statistics
□ Labor Disputes
- Unions have been growing in recent times, but workers have weak cohesion, and are
under the powerful influence of the management and the Communist Party.
- Labor-management conflicts have been growing recently but unions' negotiating power is
still weak. Therefore, conflicts do not easily escalate into strikes.
◦ Labor Disputes
- According to data released by the Beijing Human Resources and Social Security Bureau,
the number of labor disputes has risen sharply since the second half of 2008.

- Disputes numbered 20,000 in both 2006 and 2007, but surged 1.5 times to 49,000 in 2008.
And, by August 2009, the number of disputes reached 52,000, with group labor disputes
accounting for 2,679 cases (1.93 times more compared with the preceding year).
◦ Labor Dispute Arbitration Procedures
- Attempts should first be made to settle labor disputes through negotiation, but, failing
that, the parties involved (workers or companies) may demand arbitration. However, if
the parties involved are not willing to negotiate, they can directly request arbitration.
- If the parties involved cannot accept the results of arbitration, they may file a lawsuit
with the people's court.
□ Taxation
- Over the last couple of years, the Chinese government has been vigorously pushing for
taxation reform, including corporate income tax and VAT.
- The Chinese government announced a temporary rule on VAT in China, taking effect
from January 1, 2009, under which corporations, when purchasing fixed assets such as
machinery, are allowed to deduct the purchase VAT from the sales VAT.

<Major Revisions on Foreign Investment Companies' Income Tax>
Category Previous Tax Law New Tax Law

- 25% (regardless of business)
Statutory tax rate 33% (including local tax of 3%) - High-tech corporations : 15%
- Small and medium firms : 20%
- Foreign companies in special economic
zones, foreign production companies in
Low tax rate state-level development zone : 15% Annulled
- Foreign production companies in major (Existing beneficiaries are given
cities : 24% a 5-year period of grace)
Tax Tax breaks - 2-time exemption and 3-time reduction
incentives (Tax holidays) - Foreign production companies
- After the 2-time exemption, 3 time-
reduction, 50% exemption continues to be
Half tax
provided Annulled
reduction
- Foreign production companies with
exports commanding over 70%
- After joining the WTO, China refined its laws and systems concerning intellectual
property rights, and strengthened its crackdowns on IPR infringements, thereby
continuing its efforts in this regard. However, China is still on the US Trade
Representative's Watch List.
- China announced a National IPR Strategy Guideline on June 5, 2008, under which it aims
to enhance its procedures for creating, implementing, protecting and managing IPRs by
2020.
◦ Disputes Over Intellectual Property Rights
- The number of appeals over IPR disputes to be dealt with in the first civil trials, which
were filed with local courts nationwide in 2008, was 24,406, up 36.5% from the previous

year. Of those, disputes over copyrights accounted for the largest share at 10,951, followed
by trade disputes at 6,233.
<Disputes over Intellectual Property Rights>

(Unit : dispute)
2002 2004 2006 2008
7,800 14,219 14,219 24,406
Source : State Intellectual Property Office (SIPO)
Note : Based on the number of appeals in the first civil trials.
◦ International Patent Application
- The number of international patent applications has been increasing in the case of
semiconductors, nuclear processes, medical technologies, automotive engines, and audio-
visual technologies.
- The number of PCT international patent applications increased from under 1,000 in 2004
to 6,089 in 2008, up 11.9% from the previous year, thus raising China to sixth place in the
global ranking.

(Unit : patent)
2002 2004 2006 2008
951 898 3,826 6,089
Source : SIPO
- In 2008, China had 12 bonded ports, and 17 large ports capable of handling 100 million
tons of cargoes. China ranked first for six straight years worldwide in terms of port cargo
handling volume and container cargo handling volume, with cargo handling volumes
increasing at annual rate of 30%.

- In 2008, Tianjin Port, near Beijing, handled 355.93 million tons of cargoes, and 230,000
passengers.
- China operates 158 civil airports, of which 152 operate scheduled flights. Airports are
concentrated most heavily in the northern, eastern and southern regions.
- Beijing International Airport operates flights to and from 191 cities in 76 countries, of
which 106 are domestic cities and 85 are overseas cities.
- In 2008, Beijing Airport handled 55.94 million passengers, and 1.37 million tons of cargoes,
ranking 8th among the world international airports.
◦ Railway
- China operates 79,700km of railway lines. The railway network is centered in Beijing in
the northern region, and in Shanghai in the southern region, and extends to Xinjiang
Uyghur Autonomous Region in the northwest. In 2008, the Beijing railway transported
76.46 million passengers, and 18.36 million tons of cargoes.
(6) Public Services
- Beijing offers good waterworks, electricity, and gas services. In the case of electricity
outages or temporary stoppages of the water supply, prior notice is given to apartment
complexes and industrial complexes, causing no real inconvenience to people's everyday
life or to corporate operations.

(Unit : US$)
Major Public Services Costs Criteria Remarks
Electricity 0.089 kwh Voltage of 1~10kv, for general industrial use
Gas 0.27 m³ Industrial natural gas price
Waterworks 0.78 ton Industrial and commercial price
Petroleum 0.95 Liter (ℓ) # 93 retail gasoline price
LPG 11.7 ton Industrial, public services
Source : Beijing Development Reform Commission
Note : #93 means No. 93 gasoline. (In addition, there are No. 90 and No. 97.)
- Establishment, alternation and amendment (including the acquisition of foreign investment

companies) with regard to foreign investment corporations are endorsed by cities, districts,
and prefectures, as well as by the Beijing Economy and Technology Development District,
the Tianzhu Export Processing District, and the Haiden Management Commission of
Zhongguancun Science Park, pursuant to the relevant laws and regulations.
- It takes up to six months to establish an foreign investment corporation, and costs vary
somewhat according to the business types and service agencies.
◦ Corporation Establishment Procedures
- The procedure for the establishment of an foreign investment corporation in Beijing is as

follows. Application for investment area → preparation to appraise → approval of
establishment → registration.
- If investment areas fall into the encouraged category under the FDI Industries Guidance
List, the Beijing Reform and Development Committee and the Commercial Bureau issue
the corresponding confirmation pursuant to the relevant laws.

□ Foreigner's Acquisition of Realty
- Foreigners who have stayed for more than one year in China to work at the Chinese
branches and the representative offices of foreign companies(excluding the realty business),
and to study in China are allowed to purchase houses suitable for their actual demand under
their real name. A representative office serves as only a liaison office before establishing a
corporation, and is in principle prohibited from conducting profitable activities; it may
only undertake to liaise with its parent company, to gather information, etc.
- When foreign investment company invests more than US$ 10 million when establishing a
realty company in China, its registration capital should be over 50% of the investment
amount. Also, if a foreign investor invests in the Chinese realty market, the investor must
obtain an FDI endorsement certificate and a business license.
- If a foreign realty company fails to fully pay the registration capital and to obtain a
national land use certificate, and if the project development capital is under 35% of the
total investment amount, the extension of loans and the settlement of foreign exchange
will be limited.
- With the implementation of the system of purchasing houses under one's real name,
China actually limits house purchases by foreigners to one house per household.
Living Environment
- Housing rental costs in Beijing vary depending on the districts. In Dongcheng District,
Xicheng District, and Haidian District, the central areas of Beijing where many elementary,
middle and high schools are concentrated, housing rental costs have continued to rise.

- Also, districts such as CBD and Wangjing, where a large number of foreigners live,
housing rental costs of premium apartments are higher than other areas.
<Rental Costs in Foreign Residential Districts (2009)>

(Unit : US$)
Housing Apartment rental Agency
District Area (㎡) Security Deposit
structure costs commissions
Dongcheng District 65 366.00
Chongwenqy 42 409.92
Xuanwuqu 57 366.00
1 living room,
Fengtaiqy 44 512.38
1 bedroom
Shijingshanqu 56 322.07 1 month's rent 1~2 months' rent
Haidian District 60 424.54
Yizhuang 56 219.59
Chaoyangqu 1 living room, 87 512.40
Xicheng District 2 bedrooms 100 878.40
Source : Beijing Municipal Bureau of State Land and Resources
- Beijing has 6,039 general hospitals and specialized hospital, while the number of clinics
and medical service centers located near apartment complexes stands at 3,304. Despite the
large number of hospitals, overall medical services systems are not well equipped,
resulting in visitors having to queue for medical services for a long time. Also, the prices
of medicines are high.
- Diagnostic service fee per visit in Beijing is normally CYN 5 (US$ 0.73), while a specialist
diagnosis fee can cost over CYN 100 (US$ 14.64).
- Foreigners mostly use Beijing Tongeren Hospital and China-Japan Friendship Hospital.
<Hospitals Available to Foreigners (General Hospitals)>
District Hospital Telephone

Beijing Hospital 6513-2266
Dongcheng District Beijing Hong Kong International Clinical Center 6501-2288
Beijing Union Medical Hospital 6529-6114
China-Japan Friendship Hospital 6422-2949
Chaoyangqu Beijing Asia International Emergency Medical Service Center 6462-9112
Beijing International Medical Center 6465-1384
Beijing Friendship Hospital 6301-4411
Xuanwuqu
Zhongguo Zhongyiyanjiuyuan Guang'anmen Hospital(Yiyuan) 6301-3311
Beijing Tongren Hospital 6512-1133
Chongwenqy
Beijing Emergency Medical Center 120
Beijing University Yixue Hospital 6209-1984
Haidian District
Beijing(shi) Haidianqu Wanshoulu Hospital(Yiyuan) 6825-4956
◦ Medical Service System
- Foreigners are not allowed to use the Chinese social insurance services, but can subscribe
to commercial insurance services through insurance companies.
- Even in the case of commercial insurance services, foreigners are not allowed to subscribe
to other insurance services except serious disease insurance and injury insurance services.
- Since it is difficult for individual foreigners to subscribe to commercial insurance services,

most companies which hire foreigners insure their foreign employees.
◦ Subway
- Beijing's subway system consists of lines 1, 2, 5, 8, 10, and 13, as well as the Batong line
and the exclusive airport line.

- Beijing plans to build lines 4, 6, 7, 9, 14, and 15, as well as the Yizhuang, Daxing,
Fangshan and S1 lines, and will also extend line 8.
- The subway is frequently used by foreigners.
◦ Bus
- Beijing operates 648 bus lines with a capacity of 20,500 buses, but foreigners do not use
buses very much.
◦ Taxi
- Beijing has 66,600 taxis, of which the main models are the Beijing Hyundai and the
JETTA.
- The basic taxi fare is CYN 10 (US$ 1.46), and the travel fare is CYN 2 (US$0.29) per km.
◦ Railway
- Beijing is the railway network hub of China, and connects to Hong Kong, Shanghai,
Guangzhou, and Harbin. A number of international lines run from Beijing to Russia,
North Korea, and Vietnam.
◦ Airport Accessibility
- Beijing International Airport, the country's largest airport, is 20km from the downtown
area, and can be reached in 40 minutes via the airport expressway.
- Passengers can take the exclusive airport subway to reach the T3 boarding building of
Beijing International Airport. The journey takes 16 minutes, and the fare is CYN 25 (US$
3.66).
Subway Bus Taxi

- Basic fare : CYN 10 (US$ 1.46)
CYN 2 CYN 1 Daytime - Up to 15km : CYN 1/km (US$ 0.15)
(US$ 0.29) (US$ 0.15) - After the first 15km : CYN 3/km (US$ 0.44)
※ The whole ※ 60% discount available - Basic fare : CYN 11 (US$1.61)
section with transportation cards 11pm~5am - Up to 15km : CYN 2.4 /km (US$ 0.35)
- After the first 15km : CYN 3.4/km (US$ 0.50)
Source : Beijing City Transporation System
□ Foreign Schools
◦ Number of Foreign Schools
- Beijing has 12 foreign schools, most of which run kindergartens, and elementary, middle
and high schools.
- American and British international schools occupy the largest share of all foreign schools,
and there are also Korean and Japanese international schools.

<Foreign Schools>
Curriculum Foreign Schools Education Levels Tel.

Kindergarten, elementary and
Yew Chung International School Beijing 8583-3731
middle schools
Kindergarten, elementary,
Beijing BISS International School 6443-3151
US middle and high schools
Montessori kindergarten Beijing Kindergarten 6535-8129
International School of Beijing (Shunyi) 8046-2345
middle schools
Etonkids International Kindergarten Kindergarten 6539-7171
Beijing British School 8532-3088
UK middle schools
Dulwich College Beijing 8450-7686
middle and high schools
Beijing Korean International School 5134-8588
Korea
International Academy of Beijing 6430-1600
middle schools
Hong Kong Western Academy of Beijing 8456-4155
Japan Beijing Japanese School Elementary and middle schools 6436-3074
China Beijing City International School 8771-7171
- The tuition fees of American international schools and Korean international schools are
cited below.
<Tuition Fees of Foreign Schools>

(Unit : US$)
Beijing Korean Beijing American
Education Level
International School (KISB) International School (BAIS)
Elementary School 2488.80 19,851.39
Middle School 3308.64 21296.05
High School 4157.76 23417.57
Source : The schools' websites
- The number of mobile users is 16 million, which translates into 95.4 users for every 100
people. The number of Internet users reached 4.8 million in 2008, accounting for 28% of
the city's total population.
◦ Communication Services Fees
- Mobile services are provided on a pay-as-you-go basis. No subscription fees are charged
for Internet services but the service fees are relatively high.
<Communication Services Fees (2009)>

(Unit : US$)
17.6/month
34.4 5.1 7.3 7.3 (basic) -
(ADSL)
Source : China Unicom
Investment System
(1) Investment Law
□ Catalogue for the Guidance of Foreign Investment Industries
- The Catalogue for the Guidance of Foreign Investment Industries contains the Chinese
government's guidelines on foreign investment promotion by businesses. It categorizes the
businesses into 'encouraged', 'limited', and 'banned' businesses.

- Encouraged businesses include high technology, manufacture of equipment, manufacture
of advanced materials, business services, logistics, circulation economy, clean production,
and renewable energy sources.
- Limited businesses include those in high-energy, high-pollution industries, the trading of

houses and buildings established by foreign companies, the establishment of realty agency
companies, land development projects, premium hotels, villas, premium office buildings,
and the construction and management of international convention centers.
- Banned businesses include foreign investment in the exploration and mining of

non-renewable important mine resources, high-energy, high-pollution industries, and the
construction and management of golf courses.
□ Company Act
- The Company Act constitutes the Chinese government's basic policy on the establishment
of domestic and foreign companies. With regard to the establishment and management of
an foreign investment company, if the Company Act and the Third Party Act (Foreign
Investment Company Act, and Joint-stock and Joint-Venture Company Act) contradict
each other, the latter will prevail.
- Regarding the requirements for the establishment of an foreign investment company, the
number of investors should be under 50, and the minimum registration capital of a
general limited liability company should be CYN 30,000 (US$ 4,392).
- The establishment of one-person limited liability companies is allowed, the minimum

registration capital being CYN 100,000 (US$ 14,641), which should be paid as a single
payment; and the single investor is allowed to establish only one company. However, the
establishment of one-person joint-stock companies is banned. The minimum registration
capital of a general joint-stock company should be CYN 5 million (US$ 732,064).
□ China's Investment Promotion Agency
◦ China does not operate a separate state-run investment agency.
- The Ministry of Commerce deals with investment affairs, including investment statistics
and policies, but no independent investment agency is operated in China.
- Local municipalities operate investment departments under the diverse names of

Investment Promotion Bureau, Investment Promotion Center, and Investment Affairs
Center.
□ Beijing's Investment Agencies
Agency Beijing Municipal Commission on Development and Reform (BMCDR)

Upper Agency National Development and Reform Commission (NDRC)
Major Duties Formulates macro-policies on economic and social development
Work regarding Foreign investment companies, if related to manufacturing and investment in fixed
foreign investment assets, need to obtain the approval of either the NDRC or the BMCDR for their
promotion planned projects
Agency Beijing Investment Promotion Bureau

Upper agency Beijing City Government
Workforce 100
Provides consulting and administrative services concerning the establishment and
Major Duties
management of foreign investment companies
□ Incentives for the Establishment of Multinational Corporations' Regional Headquaters
- Beijing exceptionally offers subsidies to multinational corporations with regard to their

establishment of regional headquarters, although it does not provide benefits to general
foreign investors. In such cases, a regional headquarters should have a registration capital

amount (actual payment amount) of over US$ 10 million. Its scope of management should
include not only general management, but also general service functions such as export
and import, domestic retail, logistics, and outsourcing services.
- If a new or newly relocated regional headquarters in Beijing has a registration capital of

over CYN 100 million (US$ 14 million), differentiated subsidies will be provided over
three years according to the size of the registration capital amount. 30% of the office
rental fee for the first year, subsidies over three years, and a subsidy of CYN 1,000 (US$
146.4) per m² for the construction of a building or purchase of offices are also offered;
provided that the rental period is over 3 years, and that, during the period of receipt of
subsidies, the facility is neither rented nor subleased, nor its purpose of use changed.
- If regional headquarters and their R&D centers which are newly established or newly
relocated in Beijing after January 1, 2009 construct or purchase offices, subsidies will be
provided to such facilities.
- Beginning in 2009, those regional headquarters which generate an annual operating

revenue of over CYN 100 million (US$ 14 million) for the first time will be provided with
subsidies according to the size of such operating revenues.
□ Breaks on Corporate Income Tax and VAT
- Corporate income tax breaks are provided to those incomes generated from investment in
public infrastructures, and from eco-friendly, energy-saving, and water consumption
reduction-related businesses.
- 15% corporate income tax breaks are provided to high-tech corporations that are engaged
in certain high-tech businesses supported by the government.
- Breaks on export tariffs and export VAT are provided to export products manufactured
by foreign investment companies; provided that products which are restricted from
exporting or certain products prescribed under the state's regulations (petroleum, finished
oil, etc.) are excluded from this category.
6 Hong Kong
- Hong Kong's investment promotion policy basically treats domestic and foreign companies
equally, and thus does not offer incentives exclusively for foreign industrial complexes or
for foreign companies' industrial location conditions.
- Hong Kong has three industrial complexes, each of which is no larger than 80ha, and
most FDI into the country is intended for areas other than manufacturing, thereby
generating little demand for industrial land.
- Foreign companies generally choose the northern commercial districts of Hong Kong,
including Central, Admiralty and Sheung Wan. However, these districts' rental costs are
the highest in Hong Kong (US$ 107, m²/month), and rank among the uppermost groups
of rental costs in Asia and the rest of the world. As such, many businesses have in recent
years been relocating their offices to nearby districts such as Wanchai, Causeway Bay and
Quarry Bay, as well as Tsim Sha Tsui in the Kowloon Peninsula, where rental costs are
lower and convenient transportation is available.
<Land Purchase Costs in National Industrial Complexes (per ㎡)>

(Unit : HK$)
National Industrial Complexes Purchase Costs
Tai Po Industrial Estate 2,400 (US$ 311.7)
Inland land : 2,350 (US$ 305.2)
Tseung Kwan O Industrial Estate
Harbor land : 2,900 (US$ 376.6)
Yuen Long Industrial Estate 1,900 (US$ 246.8)
Source : Hong Kong Science Park Corporation
Note : US$ 1 = HK$ 7.7

<Rental Costs in High-Tech Industrial Complexes (per ㎡)>
(Unit : HK$)
High-Tech Industrial Complexes Industries Office Rental Costs
High technologies A+ 217.43 (US$ 28.2)
(Electronic equipment, A 204.52~212.05 (US$ 26.6~27.5)
Hong Kong Science &
biotechnology,
Technology Park B 190.52 (US$ 24.7)
precision engineering, information
technology and telecommunication) C 139.93 (US$ 18.2)
Cyberport Information technology, media 24~26 (US$ 3.1~3.4)
Inno Centre Design 17.3 (US$ 2.2)
Source : Hong Kong Science Park Corporation
Note : Office rental prices include administrative expenses
◦ Purchase Costs for Commercial Offices
- Land purchase in Hong Kong requires the submittal of an application to the Lands
Department, which discloses information (location, use, area size, etc.) on land available
for transaction according to an annual land sales program under which land is auctioned
off or applications for land purchase are received.
- Applicants for land purchase should submit an application along with the prescribed
documents within two months of the date of land sell-off specified in the announcement.
The required documents are as follows:
․The application, including the minimum bid price
․The agreement to auction or tender
․A check showing a security deposit amount which is 5% of the minimum bid price
proposed in the application (a maximum of HK$ 25 million or US$ 3.247 million)
- If the proposed minimum bid price is appropriate, the Lands Department will sign the
agreement within 2 months, and notify the appliant of sell-off methods, etc. If the
proposed minimum bid price is inappropriate, the paid security deposit will be returned
to the applicant.
<Commercial (Office) Purchase Costs by Class (per ㎡)>
(Unit : HK$)
Purchase Costs
District
A B C
218,474 121,058 92,443
Central, Admiralty
(US$ 28,373.2) (US$ 15,721.8) (US$ 12,005.6)
124,877 76,900 59,053
Sheung Wan
(US$ 16,217.8) (US$ 9,987) (US$ 7,669.2)
125,607 99,743 74,798
Wanchai/Causeway Bay
(US$ 16,312.6) (US$ 12,953.6) (US$ 9,714)
88,727 57,994 62,586
North Point/Quarry Bay
(US$ 11,523) (US$ 7,531.7) (US$ 8,128.1)
129,545 94,450 62,067
Tsim Sha Tsui
(US$ 16,824) (US$ 12,266.2) (US$ 8,060.6)
156,686 62,852 49,772
Yau Ma Tei/Mong Kok
(US$ 20,348.8) (US$ 8,162.6) (US$ 6,463.9)
Source : Hong Kong's Lands Department
Note : A, B, and C are the classes by which Hong Kong Lands Department classifies buildings, with A being the
highest class.
- Commercial realty rental is normally based on a 2~3 year basis with a renewal being an
option.
- Other costs include administrative expenses and a tax equivalent to 5% of the rental cost.
<Commercial (Office) Rental Costs by Class (per ㎡)>

(Unit : HK$)
Rental costs
District
A B C
Central, Admiralty 933 (US$ 121.2) 547 (US$ 71) 378 (US$ 49.1)
Sheung Wan 684 (US$ 88.8) 287 (US$ 37.3) 224 (US$ 29.1)
Wanchai/Causeway Bay 526 (US$ 68.3) 368 (US$ 47.8) 310 (US$ 40.3)
North Point/Quarry Bay 338 (US$ 43.9) 249 (US$ 32.3) 270 (US$ 35.1)
Tsim Sha Tsui 401 (US$ 52.1) 321 (US$ 41.7) 338 (US$ 43.9)
Yau Ma Tei/Mong Kok 420 (US$ 54.5) 296 (US$ 38.4) 244 (US$ 31.7)
Source : Hong Kong's Lands Department

□ Labor Law
- Hong Kong's Labor Law, also referred to as the Employment Ordinance, comprehensively
specifies the regulations on employment, dismissal, and working conditions, etc.
- Labor unions' activities are protected by law. The Labor-Management Arbitration Office
which belongs to the judiciary branch, arbitrates and judges disputes between employers
and employees. Over 20% of employees have joined unions, but most employees generally
hold negative views with regard to the possibility of strikes leading to economic loss, and
tend to refrain from long-term or violent strike action.
◦ Employment Laws
- In Hong Kong, all employment is arranged through agreements which specify the term of
a work contract, and annual salary, etc., with no differentiation between regular or
non-regular jobs. However, if an employee works for over 18 hours per week, and
maintains employment relations with the employer for over 4 weeks, the employee is
henceforth regarded as being employed under a continuous contract, thereby qualifying
for legally guaranteed holidays, annual leave, sick leave, severance pay, and employer's
tax. (Daily workers do not qualify for these benefits.)
- Hong Kong does not implement a comprehensively applicable minimum wage for
employees. (Since 2007, the implementation of minimum wage system has been discussed.)
<Obligations for Termination of Employment Contracts>
Obligation to Provide
Employment Contract Conditions Prior Notice Period
Wages
The first full month Not required Not required
The period as specified in the
In the event that the
contract (provided that prior notice
contract specifies the
Probationary After of over seven days is required
notice period
period one before termination of the contract)
month In the event that the Wages are paid on
contract does not specify Over seven days the basis of the
the notice period remaining period in
The period as specified in the terms of days, weeks,
In the event that the contract contract (provided that prior notice and months.
Non- specifies the notice period of over seven days is required
probationary before termination of the contract))
period
In the event that the contract does
Over one month
not specify the notice period
◦ Working Conditions
- Most working conditions comply with labor laws, which specify the minimum guarantees
for workers, but actual working conditions vary depending on the company. Generally,
better working conditions than the minimum standard specified in the regulations are
provided.
Legal Weekly Annual National Saturday Holiday Minimum Annual

Maternity Leave
Working Days Holidays System Leave
Varies depending
6 days 10 weeks 12 days 7 days
on the company
Source : Hong Kong's Labor Department
Note : Minimum conditions specified in the Labor Law
- Hong Kong's social insurance system is mainly based on individuals. Hong Kong does
not provide state-supported unemployment insurance, national pension and health

insurance. Instead, employers provide employee accident insurance and pension insurance
(Mandatory Provident Fund) services obligatorily, and employee health insurance as an
option. (Provision of medical insurance by the employer is not mandatory)
Sharing Ratios
Insurance Purpose
Employers Employees
Compensation for employee The whole amount is
Accident Insurance -
accidents at work shouldered
50% is shouldered
After-retirement income guarantee
National Pension (5% of employees' monthly wage is
(pension accumulated)
shouldered respectively)
The whole amount is
Health Insurance Treatment of diseases -
shouldered (not obligatory)
Source : Hong Kong's Labor Act
□ Labor Power
- In 2008, Hong Kong's working population stood at 3.6 million, or 52% of the total
population of 7 million.

2006 2007 2008
3,571.8 3,629.6 3,685.7
Source : Hong Kong's Statistics Department
- Hong Kong implements a nine-year obligatory education system, and 43,000 students are
graduating every year from Hong Kong's twelve higher education institutes. Over
one-third of the education budget of Hong Kong's government is allocated to higher
education (universities and above), and university graduates account for over 20% of the
total number of higher education graduates.

Education Level Graduate Population Ratio (%)
Below High Schools 88.3 49.1
High School Graduates 48.6 27.1
University Graduates and above 42.8 23.8
Source : Hong Kong's Statistics Office, and universities
□ Wage Levels
- The wages of workers in Hong Kong vary greatly according to the occupation, position,
and field. For instance, upper financial workers can earn an annual wage of over US$
100,000. The average monthly wages by industry is the highest in the transportation and
warehousing fields.
- Hong Kong does not implement a minimum wage system, and its labor markets' wage
system is very flexible, allowing wages to be determined according to workers'
competence. A new employee's average monthly wage is usually under HK$ 15,000 (US$
1,948.1), but it may surge in a short period of time depending on the individual
employee's competence and experience.
<Average Monthly Wages by Education Level>

(Unit : HK$)
Education Level Average monthly wage
High school graduates 6,000~10,000 (US$ 779.2~1,298.7)
University graduates 8,000~15,000 (US$ 1,039~1,948.1)
Master's degree and PhD holders 18,000~22,000 (US$ 2,337.7~2,857.1)
Source : Jobs DB, Classified Post, Manpower Hong Kong

◦ Average Wages by Occupation
- Average wages vary according to industries and employees' experience in work; as such,
Hong Kong's Labor Department and Statistics Department do not announce average
wages by occupations unilaterally. The average wage of newly employed high school and
university graduates are based on the average wages shown in the wanted ads of
recruitment websites.

(Unit : HK$)
High-ranking staff (executives) 50,000~170,000 (US$ 6,493.5~22,077.9)
Managers (ass't managers - managers) 13,000~22,000 (US$ 1,688.3~2,857.1)
Office
New employees (university graduates) 10,000~15,000 (US$ 1,298.7~1,948.1)
New employees (high school graduates) 8,000~10,000 (US$ 1,039~1,298.7)
Car drivers 12,000 (US$ 1,558.4)
Labor Security guards 7,290 (US$ 946.8)
Cleaning workers 5,300 (US$ 688.3)
Source : Hong Kong's Statistics Department, Recruitment websites (Average wages of high school and university
graduates)

(Unit : HK$)
Manufacturing 10,246 (US$ 1,330.6)
Restaurants, hotels, wholesale and retail, import and export 12,033 (US$ 1,562.7)
Services Transportation, warehousing 13,332 (US$ 1,731.4)
Finance, insurance, realty, business services 10,929 (US$ 1,419.4)
Total Average 11,380 (US$ 1,477.9)
Source : Hong Kong's Statistics Department
□ Labor Disputes
- In Hong Kong, labor-management relations are based on conditions negotiated between

the interested parties. The formation of trade unions and the right to join them are
guaranteed by law, and over 60% of local employees have joined labor unions. However,
society holds negative views of strikes and labor dispute where the risk of economic loss
is concerned, and thus the majority of businesses maintain peaceful labor-management
relations.
◦ Labor Disputes
- In 2008, the Labor Department arbitrated 120 minor and major labor disputes, marking
the lowest level since 1998 and a fall of 3% from 2007. The loss of working days due to
labor disputes amounted to just 0.46 day per 1,000 workers in 2008, the world's lowest
level.
- In 2009, due to the economic recession, increasing numbers of businesses were being shut
down and bankrupted, and employees laid off. And in the first quarter of 2009, the Labor
Department announced 59 labor disputes, up 84% from the previous year.
<Labor Disputes>
2006 2007 2008

Number of Labor Disputes 3 3 4
Loss of Working Days 54 8,027 1,408
Soft Trans Logistics
Major Dispute Examples Cathay Pacific Bar-bender
company Ltd.
Source : Hong Kong's Labor Department and Statistics Department

□ Taxation
- Hong Kong boasts the world's lowest rates in major taxes, and implements a relatively
simple taxation policy.
- Also, Hong Kong itself is a non-tariff region except for certain product items, making the
trade of products highly convenient.
<Major Taxes and Tax Rates (2009)>
Taxes Tax Rates (%)

Corporation 16.5%
Income Tax
Individual Applicable by salary bracket (up to 15%)
Realty Tax 15%
VAT none
none
Tariff
※ Tariff applies only to hydrocarbon (for fuel), tobacco, liquors (over 30 degrees), and methyl alcohol
Source : Hong Kong's Taxation Department
- During 1997~1998, the Hong Kong government refined its Act on the Protection of
Intellectual Property Rights, and implemented the relevant laws. This resulted in Hong
Kong's removal from the USTR Watch List on December 17, 1999.
- Hong Kong is now one of the Asian countries where IPR protection is the most
thoroughly implemented. Infringements upon patents, copyrights, trademarks, and designs
are strictly regulated by law.
◦ Intellectual Property Rights Disputes
- IPR disputes in Hong Kong arise mainly in relation with trademarks. As IPRs are
increasingly perceived important and creative industries are being developed, this leads to
an increasing number of IRP disputes each year.
- IPR disputes numbered 63 in 2008, up 61% from 2006.
<Intellectual Property Rights Disputes>

(Unit : dispute)
2002 2004 2006 2008
14 19 39 63
Source : Hong Kong's Intellectual Property Department
◦ International Patent Applications
- Not many international patent applications are filed by Hong Kong.

(Unit : patent)
2004 2006 2007 2008
5 2 7 1
Source : World Intellectual Property Organization (WIPO)
- Hong Kong enjoys a highly favorable strategic location, enabling it to maximize trading
efficiency via diverse modes of transportation including marine, air, railway and overland
systems. It is equipped with infrastructures which effectively connect it to Guangdong
Province and the Pearl River Delta area of southern China.

- Hong Kong Port, which is privately owned, boasts the best operational efficiency and
competitiveness. Notably, Kwai Chung Harbor, an exclusive container wharf located in
Hong Kong New Territories, handles over 60% of Hong Kong's total cargo volume, while
Victoria Harbor handles 30~40% of the city's total cargo volume.
- In 2008, Hong Kong Port handled 2.44 million TEUs (Twenty-foot Equivalent Unit),
ranking 3rd worldwide after Singapore and Shanghai. Hong Kong lost its solid world No.
1 place in cargo handling to Singapore back in 2005, and since then has seen a slowdown
in its cargo handling volume amid the rapid emergence of Shanghai and Shenzhen ports.
Due to a simple taxation system and advanced logistics infrastructures, however, Hong
Kong looks likely to maintain its position as Asia's logistics hub for some time.
- Hong Kong International Airport, which was moved to its current location in 1998, has
been evaluated as one of the world's best airports by the IATA, Skytrax, etc.
- In 2008, the airport handled 47.8 million passengers and 3.62 million tons of cargoes,
ranking 5th and 1st in the world, respectively.
(6) Public Services
- The Water Supplies Department stably provides waterworks services in compliance with
the WHO's regulations on water treatment processes. Waterworks taxes are paid every
four months on the basis of meter readings.
- Electric power is stably supplied by CLP Power Hong Kong Limited and Hong Kong
Electric Company Limited.
(Unit : HK$, HK$ cents)
Kowloon Peninsula 0.757~0.955 (US$ 0.098~0.124)
Electricity kwh
Hong Kong Island 0.884~1.5 (US$ 0.115~1.948)
MJ
Gas 20.35~21.30 (US$ 2.643~2.76)
※ City gas, HK$ cents
Waterworks 4.16~9.05 (US$ 0.54~1.18) ㎥
Source : Water Supplies Department, CLP Power Hong Kong Limited, Hong Kong Electric Company Limited,
Towngas
Note : 1) MJ (Megajoules) : caloric value
2) 1MJ = 238.7kcal
- Hong Kong claims to be a business-friendly international business hub, enabling the rapid
establishment and operations of corporations at a low cost.
- Types of corporations include private limited companies, branch offices of overseas

companies, representative offices, partnerships/sole proprietorships, and joint ventures.
◦ Corporation Establishment Procedures and Costs
- In Hong Kong, there are various corporation establishment services agencies, including
PWC and KPMG, which also have international branches. Corporations in Hong Kong
need secretaries, agents who communicate with the Hong Kong government and are
residers in Hong Kong with IDs), and this role can also be performed by corporation
establishment consulting services companies. The cost is HK$ 5,000 (US$ 649.4) a year.
- Within one month of commencement of a business, corporations should complete business

registration. The cost is HK$ 2,450 (US$ 318.2), and the registration should be renewed
every year. It takes under 30 minutes to complete the registration procedure.
- If all documents are properly prepared, it takes 10 days to establish a corporation.

<Corporation Establishment Procedures for Foreigners>
① Determine company name

⇩
② Establish a corporation
(Select shareholders, appoint directors and secretaries, determine amount of capital,
write articles of association, file application for corporation establishment,
receive certification on corporation establishment, and register with tax department)
⇩
③ Apply for business license
⇩
④ Open bank account
<Corporation Establishment Costs>

(Unit : HK$)
Description Costs Remarks
Establishment costs Around 7,000 (US$ 909.1) Including relevant office fees
B.R. fee (business license) 2,450 (US$ 318.2) Payable to Taxation Department
Capital tax Maximum of 30,000 (US$ 3,896.1) Tax rate : 0.1%
Total Around 40,000 (US$ 5,194.8) -
Source : Invest Hong Kong, Hong Kong's local corporation establishment services offices
□ Foreigners' Aquisition of Realty
- Hong Kong allows foreigners to freely purchase and acquire realty without imposing
particular regulations or restrictions.
- Costs for foreigners' acquisition of realty are outlined as follows.

․A buyer must pay 5% of the price in the form of a security deposit immediately upon
signing the contract, and an additional 5% in the form of a security deposit two weeks
later.
․A buyer must pay 0.5~1% of the price in commission to the realty agent.
․A buyer must pay about HK$ 6,000 (US$ 779.2) as lawyer's fees.
․A buyer must pay 0.75~3.75% of the price in stamp duty.
- Mortgage loans in amounts of up to 70% of the price may be provided.
Living Environment
- In Hong Kong, diverse types of apartments, houses, and other residential facilities are
widely distributed in downtown areas and the suburbs. However, rental charges are high,
and the amount of land available for housing is limited.
- However, apartments, the most common type of housing in Hong Kong, are mostly
available in large complexes with good security and amenities, and easy access to
convenient transportation systems, creating a pleasant overall living environment.
- Regarding monthly residental rental costs, a detached house on Hong Kong Island costs
HK$ 100,000 (US$ 12,987), while an apartment of 65m² costs over HK$ 20,000 (US$
2,597.4), making them very expensive.
- Most rental contracts are for two years, of which, generally, one year is an optional
period during which the contract may be terminated by giving prior notice.
- For a housing rental contract, the amount of two months' security deposit and one
month's rent should be paid in advance, while the agency commission will be 50% of one
month's rental fee.
<Residential Costs>
(Unit : HK$)
Monthly Apartment Monthly Detached House
Realty Agency Commission Security Deposit
Rental Cost Rental Cost
20,000~38,000 Over 100,000 50% of the
2 months' rental cost
(US$ 2,597.4~4,935.1) (US$ 12,987) monthly rental cost
Source : Midland Realty
Note : Based on apartments sized 66.116~99.174m² in downtown Hong Kong Island and Kowloon Peninsula.

- Hong Kong has both national and private hospitals of a high standard. 41 national
hospitals under the management of the Hospital Authority (including specialized and
general hospitals) offer quality services at a low cost. But with many patients visiting
them, they keep patients waiting for a long time, making it inconvenient to users. Private
and individual hospitals are very expensive, but allows use of private health insurance
services.
- Medical institutes in Hong Kong are open to both domestic and foreign nationals, but
non-Hong Kong residents are charged more than Hong Kong residents when using
national hospitals.
◦ Medical Service System
- Hong Kong does not implement a national medical insurance system. Group health
insurance services are not mandated for employers. However, national hospitals provide
relatively inexpensive services to citizens of Hong Kong, making them accessible.
- In Hong Kong, which lacks a national health insurance system, most foreigners subscribe
to private medical insurance services, with premiums varying widely depending on the
types of insurance companies and insurance policies offered.
- Most of Hong Kong's citizens use public transportation systems (buses, mini buses,
subway, ferries, and trams).
- Subway : Most commuters use the MTR (Mass Transit Railway) and KCR (Kowloon and
Canton Railway) systems. Both MTR and KCR are operated across New
Territories, Kowloon, and Hong Kong Island, while KCR also operates a line to
and from Shenzhen in southern China (to the north of Hong Kong).
- Bus : Various bus companies (Kowloon Motor Bus Company, New World First Bus
Services Limited, Citybus Limited, Long Win Bus Company Limited, and New
Lantao Bus Company) cover various districts, and bus lines are provided across
Hong Kong. Mini buses with a seating capacity of 16 passengers are used by 1.7
million people each day.
- Taxi : Taxis are categorized according to their color: Red ones run in cities, green ones in
New Territories, and blue ones in Lantau. Taxis are used by one million people per
day.
- Ferry : Ferries are used when crossing between Kowloon and Central (Star Ferry). Ferries
are also operated to and from southern Chinese cities such as Guangzhou,
Shenzhen and Zhuhai.
- Tram : Peak trams run to and from Victoria Peak, while general trams run to and from
Hong Kong Island.
- Prepaid transportation cards known as Octopus cards, are used for all public
transportation systems, and are widely used by citizens.
- Public transportation fares differ by segment.

(Unit : HK$)
Subway Bus Taxi Ferry Tram
3.5~100 2.4~4.8 18 2~32
(US$ 0.45~13) (US$ 0.31~0.62) (US$ 2.3) (US$ 0.25~4.2)
Source : The Hong Kong Fact Sheet - Transport

□ Foreign Schools
- Hong Kong has 50 private international schools of various curriculums, including 20

schools of the English Schools Foundation.
<Foreign Schools by Curriculum>

(Unit : school)
Curriculum US Germany Australia France UK Japan Korea Canada Singapore
Number of Schools 6 1 1 1 33 1 1 5 1
Source : Hong Kong Office of Education
- Free education services up to high schools are provided under a public school system.
Regarding the local private education system, kindergartens cost HK$ 20,000~ 36,000 (US$
2,597.4~4,675.3) a year, elementary schools HK$ 30,000 (US$ 34896.1), and middle and
high schools HK$ 14,000~48,000 (US$ 14,818.2~64,233.8), making them relatively expensive.
- The following Table shows the tuition fees of Hong Kong's representative international
schools, namely the English Schools Foundation (ESF) and Yew Chung International
Schools.

(Unit : HK$)
Category English Schools Foundation Yew Chung International School
Kindergarten 61,200 (US$ 7,948.1) 66,600 (US$ 8,649.4)
Elementary School 58,100 (US$ 7,545.5) 134,960 (US$ 17,527.3)
Middle and High School 89,250 (US$ 11,590.9) 112,000 (US$ 14,545.5)
Source : Yew Chung International School, English Schools Foundation
- Hong Kong boasts world-class communication and information system infrastructures and
technical manpower, adding to its attractiveness as a financial hub. It also expriences
diffusion of advanced technologies in a rapid rate.
◦ Communication Services Fees
- Mobile services fees are charged on a monthly basis or on a contracted period basis (the
basic service time for 3G phones is about 1,200 minutes). Internet service fees are charged
on the basis of the contracted period and Internet speed.
<Communication Services Fees (per month)>

(Unit : HK$)
General Phone Service Fee Mobile Phone Service Fee Internet Service Subscription Fee
Over 55 (US$ 7.1) Over 138 (US$ 17.9) Over 148 (US$ 19.2)
Source : Three Hong Kong, Smartone Vodafone, Netvigator Broadband Service, Hutchison Global Communication
Investment System
(1) Investment Law
□ No Discriminatory Principle between Domestic and Foreign Companies
- Hong Kong prohibits discrimination between domestic and foreign companies, and thus
does not implement FDI-related laws. It applies the Companies Ordinance and the
Commercial Act equally to both domestic and foreign companies.
- This means that there are no special preferences or incentives applicable only to foreign
companies.

□ Hong Kong's Investment Promotion Agency
Agency Invest Hong Kong

Upper Agency Commerce and Economic Development Department
Workforce 130 people in 27 countries around the world
- Publicizes and supports the promotion of FDI of foreign companies.

- Provides up-to-date information along with administrative support, regarding corporate
Major Duties consulting, human resources, various economic fields, and Hong Kong's business and
investment environment. Also provides information and consulting services regarding
financial procurement, taxation, and laws on employment in government projects.
Ⅲ
Comparison of Six Asian

Countries by Factor
III Comparison of Six Asian Countries by Factor
`(1) Location Conditions
◦ All of the surveyed countries, namely Korea, Taiwan, Malaysia, Singapore, China
(Beijing), and Hong Kong, implement diverse land support systems for corporations.
◦ The city states of Hong Kong and Singapore have expensive land prices due to their
scant land availability, while Taiwan, which is one third the size of Korea in terms of
territorial size, has high factory land prices due to the scarcity of available land.
Regarding factory land purchase prices, land prices per ㎡ with land location
conditions comparable to those of Gyeonggi-do in Korea (capital region) are US$
23~84 for Malaysia, which is by far the lowest level, and US$ 322 for the state city of
Singapore (the mean value of the lowest and highest prices of the three industrial
complexes), the highest level. Beijing's land prices rose to the range of US$ 165 to 248,
while Korea has a land price of US$ 319, lower than those of Hong Kong and
Taiwan, placing its industrial complexes competitiveness in the average of the ranking.
◦ In the case of commercial offices, rental costs per ㎡ with location conditions
comparable to those of Gangnam (center of Seoul, Korea) are US$ 16.5 for Malaysia
and US$ 16 for Korea, making them relatively low, and US$ 20 for Taiwan and
Beijing, similar to the prices of Korea and Malaysia. (In Korea, the highest office
rental cost per ㎡ is US$ 24 for the Gangnam Finance Center.) However, in Singapore
the rental cost is high at US$ 81 in 2009, althought the cost was lowered by 20% than
the previous year, and in Hong Kong the rental cost is US$ 107. As such, these twp
countries' office location conditions remain relatively uncompetitive.
III. Comparison of Six Asian Countries by Factor 133

Site Location Environment
450
Taiwan
400
(Taipei A, B class)
350
Industrial Land 300 Korea
(Kangnam average) Singapore Hong Kong
Purchase Cost 250 (Downtown area) (Commercial district
(US$/㎡, 200 China (Major district in Northern Hong
Gyeonggi-do level)
150 of Beijing) Kong Island)
100
Malaysia
50 (Kuala Lumpur)
0
0 20 40 60 80 100 120
Of f ice Rental Cost

(US$/㎡, Gangnam level)
Notes : 1) The mean value between the lowest and highest prices where applicable.
2) ( ) : Areas on which the office rental fees are based.
3) Factory land criteria : Selangor (Malaysia), Banwol Industrial Complex (Korea), Districts with
Class 1 Industrial Complex (Beijing, China), Daewon Industrial Complex
District (Northern Taiwan), Downtown area (Singapore), and Tai Po
Industrial Estate (Hong Kong).
◦ As regards managers' average monthly wages, Singapore has the highest at US$ 4,444,
while wages in Korea and Hong Kong are similar at US$ 2,800. Taiwan is in the
medium wage bracket at US$ 1,975. Beijing is in the low wage bracket at US$ 1,083,
making its labor costs competitive. And Malaysia has the lowest average monthly
wages at US$ 900, making its labor cost the most competitive.
◦ Regarding working populations, Korea produces 572,000 university graduates educated

to bachelor level or higher each year, making it overwhelmingly superior in this
factor. Taiwan is ranked 2nd with 287,000 people, followed by Beijing with 210,000,
and Malaysia, Hong Kong, and Singapore with 97,000, 43,000, and 38,000 respectively.

◦ The number of labor disputes is difficult to compare unilaterally among the six
countries because the criteria for totaling arbitration requests or disputes vary
according to countries. Malaysia where strikes are banned, and Singapore where there
have been no labor disputes over the last few years, boast an absence of violent labor
disputes. Hong Kong also maintains stable labor-management relations, with no large
disputes, while Taiwan successfully resolves disputes through labor-management
negotiation. China, where the Communist Party's influence prevails and unions'
negotiating power is weak, does not experience severe labor disputes but labor
disputes are on the rise.
◦ According to the World Bank's 2010 Doing Business Index, Singapore ranks 1st in
terms of labor market flexibility, followed by Hong Kong in 6th place. Malaysia is
61st, roughly in the middle, while China, Korean and Taiwan rank 140th, 150th, and
153rd respectively.
H u m an R eso u rces E n viro n m en t

7 0 0 ,0 0 0
6 0 0 ,0 0 0
K o rea
5 0 0 ,0 0 0
Y early N um b er
o f U niv ers ity 4 0 0 ,0 0 0 * C h in a in to ta l
G rad uates o f 5 .4 7 m illio n p e o ple Taiw an
b ac helo r's d eg ree 3 0 0 ,0 0 0 C hina (B eijing )
and hig her
2 0 0 ,0 0 0
S ing ap o re
1 0 0 ,0 0 0
M alay s ia H o ng K o ng
0
0 1,000 2,000 3,000 4,000 5,000
M o nthly A v erag e W ag e
(U S $, M anag er)
Note : Denotes the mean value between the lowest and highest prices where applicable.

◦ Regarding corporate tax, rates are highest in Taiwan, Malaysia, and Beijing at 25%. In
Korea, the rate is 22%, although there are plans to lower the rate to 20% in 2012.
Singapore implements a low corporate tax rate of 18%, and plans to lower the rate to
17% in 2010. Hong Kong offers the most competitive rate of corporate tax, at 16.5%,
and does not impose tariffs across the territory, making it very competitive in taxation
factor.
◦ According to the World Bank's 2010 Doing Business Index, Hong Kong ranks 3rd in
terms of taxation competitiveness, reducing corporations' tax burden the most.
Singapore is in 5th place, followed by Malaysia in 24th place, Korea in 49th place,
Taiwan in 92nd place, and China, lagging far behind in 130th place, making it least
competitive in terms of taxation. Korea has lowered its effective rates of corporate tax,
VAT and social premiums from 33.7% to 31.9%, but its lowering of income tax will be
reflected next year, and other countries are striving to improve their taxation
conditions, leading to a drop in Korea's ranking.
◦ All of the six Asian countries have implemented policies designed to strengthen the
protection of intellectual property rights, but infringements upon IPRs nevertheless
occur frequently, and disputes over IPRs are on the rise. Each year since 1988, the
USTR (United States Trade Representative) has announced "IPR Watch List" to protect
IPRs. Hong Kong was removed from this list in 1999, followed by Singapore in 2001,
while Korea and Taiwan were not removed from the list until March 2009. However,
China remains on the priority watch list, and Malaysia is also on the watch list.

◦ Hong Kong and Singapore have long been logistics leaders in Asia. China, however,
having recently occupied the world's largest share of cargo volume, has emerged as a
new logistics power. The World Bank surveyed international cargo transportation
companies to examine customs clearance procedures, the quality of infrastructures,
logistics and tracking systems, logistics costs, and so forth. It calculated the logistics
ratings of 150 countries, and announced the Logistics Performance Index (LPI) in 2007.
According to the results of the LPI, Singapore ranks 1st (4.19 points) and Hong Kong
8th (4 points), topping the LPI ranking. Taiwan ranks 21st (3.64 points), Korea 25th
(3.52 points), Malaysia 27th (3.48 points), and China 30th (3.32 points), placing all six
countries among the top 30 countries. Singapore and Hong Kong are outpacing the
other four countries by over 13 places, making their respective logistics environments
outstandingly competitive. Korea finds itself in the middle of the six countries in this
respect.
(6) Public Services
◦ The six countries all supply good public services such as waterworks, electricity, and
gas. Public services costs are not expensive for the general public.
- Gas fees are most expensive in Singapore, and are similar to those charged in Korea,
Hong Kong, and Taiwan. Beijing and Malaysia have low gas fees, while, notably,
Malaysia's gas fees are only 10% of those of Singapore.
- Electricity fees are high in Singapore and Hong Kong, and are higher in China and
Malaysia than in Korea and Taiwan.
- Waterworks service fees are highest in Singapore, followed by China which charges
higher waterworks fees compared with its other public services fees. Malaysia's
waterworks fees are higher compared with its other public services. Korea charges low
waterworks fees, with Taiwan charging the lowest waterworks fees of the six countries.

<Comparison of Public Services Costs>
(Unit : US$)
China
Korea Taiwan Malaysia Singapore Hong Kong
(Beijing)
Gas (㎥) 0.52 0.44~0.49 0.16 1.41 0.27 0.48
Electricity (kwh) 0.04~0.05 0.05~0.06 0.08 0.17 0.09 0.10
Waterworks (㎥) 0.32 0.19 0.62 0.81~0.97 0.78 0.54
Note : 1) Industrial criteria (excluding basic fees)
2) Public services fees vary according to the range of consumption amount, and this table is based on
general ranges.
◦ None of the six Asian countries regulates foreign corporation establishment and
foreign acquisition of realty. Regarding the establishment of corporations, China,
unlike the other countries, requires, depending on the investment amount, the
municipal or central government's endorsement, and generally six months to complete
the procedure, making it uncompetitive. Regarding the acquisition of realty, some
countries impose limitations on certain districts (Singapore), and over certain amounts
of realty acquisition (Malaysia). Hong Kong does not impose any restrictions on the
acquisition of realty.
◦ According to the business starting conditions of the World 2010 Doing Business Index,
Singapore ranks 4th, making it the most favorable country for business starting among
the six Asian countries. Hong Kong ranks 18th, Taiwan 29th, Korea 53rd, Malaysia
88th, and China 151st, reflecting its business starting procedures the most difficult and
complicated. Five of the countries do not require a minimum amount of capital, while
China requires a minimum amount of capital equivalent to 130.9% of per capita GNP.
Korea abolished the minimum capital system and improved its business starting
conditions, rising 73 places from 126th to 53d place last year, and remarkably
improving the competitiveness of its corporation establishment conditions.

<Comparison of 2010 Doing Business Starting Requirements>
Number of business Business creation costs Minimum capital

Country
creation procedures (Ratio (%) of per capita GNP) (Ratio (%) of per capital GNP)
Korea 8 14.7 0
Taiwan 6 3.9 0
Malaysia 9 11.9 0
Singapore 3 0.7 0
China 14 4.9 130.9
Hong Kong 3 1.8 0
C o rp o ra tio n E s ta b lis h m e n t E n v iro n m e n t

30
M a la y s ia
25
Ta iw a n C h in a (B e ijin g )
20 S in g a p o re
K o re a
C o rp o ra t e Ta x Ho ng K o ng
15
R a t e (% )
10
0
0 10 20 30 40
N u m b e r o f D a y s R e q u ire d f o r C o rp o ra t io n E s t a b lis h m e n t
(D o in g B u s in e s s 2 0 1 0 )
Living Environment
◦ Regarding monthly housing rental costs which are in areas where foreigners favor (at
a level comparable to that of the Gangnam district), Singapore is the most expensive
at US$ 3,125~6,597, followed by Hong Kong at US$ 2,600~4,935. Malaysia charges US$
1,200~2,400, and Taiwan US$ 1,000~1,200, making the costs not so low. Korea charges

US$ 1,373~2,423, and China US$ 512~878 which is the lowest level. Korea is relatively
competitive in terms of the residential costs for foreigners.
L ivin g E n viro n m en t
6 ,0 0 0
S ing ap o re
5 ,0 0 0 (D o wnto wn
area)
4 ,0 0 0 Ho ng K o ng
A p artm ent Rental (D o wnto wn
Co s t 3 ,0 0 0 K o rea area)
(US $/m o nth) M alay s ia
(K ang nam )
(M o nt K iara)
2 ,0 0 0
1 ,0 0 0 China Taiwan
(X ic heng D is tric t) (Tianm u)
0
0 20 40 60 80 100
UB S P ric e Ind ex (2009)
Note : 1) The UBS price index is based on the New York price index being 100.
2) Apartment rental cost criteria (Gangnam area's level, 90~120㎡)
: Malaysia(Mont' Kiara), Taiwan(Tianmu), Korea(Gangnam), China(Xicheng District, Beijing)
◦ In Singapore, Hong Kong and Malaysia, English is commonly used in everyday life,
and the Taiwanese doctors also speak good English, making their hospitals accessible
to foreigners. However, hospitals in China are less accessible to foreigners due to poor
overall English proficiency.
◦ In the 2008 World Major Cities' Living Conditions Index (KOTRA), medical costs
without medical insurance benefits applied (initial diagnosis of a cold) are compared.
Singapore is the highest at US$ 70.96, followed by Hong Kong at US$ 51.32. Kuala
Lumpur (Malaysia) charges US$ 21.85, Taipei (Taiwan) US$ 19.03, Seoul (Korea) US$
12.89, and Beijing US$ 1.95. As such, medical costs vary greatly. Korea, compared
with the five other countries, offers advanced medical technologies combined with
low medical costs, making its medical service competitiveness superior.

◦ Singapore, Korea, Taiwan and Hong Kong boast well-developed public transportation
systems and low fares. To boost foreign users' convenience, Korea makes foreign-
language announcements, provides foreign-language road signs, and continues to
improve its transportation system environment; its foreign-language transportation
services are better than the average of six countries. China has a well-developed
public transportation system, but its buses are not easy for foreigners to use, lowering
its competitiveness in this regard. Malaysia does not have a well-developed public
transportation system, lowering its competitiveness in terms of the convenience of
transportation.
◦ Regarding the number of foreign schools, Hong Kong has 50, Malaysia 48, and Korea
45 (24 located in the Greater Seoul Area). Singapore has 30, Taiwan 18, and Beijing
12. In terms of the number of foreign schools per 10,000 foreigners, Korea has the
largest number at 3.6. However, Singapore, Hong Kong and Malaysia have far more
foreign residents than Korea does, and English is generally used in everyday life,
making it easy for foreigners to enroll their children at local public schools. In terms
of foreign education facilities, Korea is better than Taiwan and Beijing, but not as
abundant as other three countries.
◦ Singapore, Hong Kong, Korea, and Taiwan boast high rates of mobile and Internet
service usage, and world-class communication system development. Beijing and
Malaysia have an Internet diffusion rate of 28% and 25%, respectively, considerably
lower than the other four countries. Internet speeds are slow because telephone
networks are used for the Internet, lowering the competitiveness of the
communication sector in those countries.

Investment System
(1) Investment Law and Investment Promotion Agency
◦ With the exception of Hong Kong, which in principle does not differentiate domestic
and foreign companies, all countries implement separate laws pertaining to foreign
investment. Hong Kong subjects foreign investment companies to the Corporation Act
and the Commercial Act just as domestic companies are subject to those acts.
◦ Hong Kong does offer an exclusive investment promotion agency. In other countries,
separate foreign investment promotion agencies are operated, such as EDB
(Singapore), MIDA (Malaysia), KOTRA (Korea), and TAITRA (Taiwan). China does
not operate a separate investment agency; instead, local municipalities operate
investment departments. In the case of Beijing, its Investment Promotion Bureau and
Municipal Commission on Development and Reform undertake to perform foreign
investment promotion work.
◦ With the exception of Hong Kong, all the countries offer an incentive system for
foreign investment. Korea, Taiwan, Malaysia, Singapore, and Beijing make the most of
tax breaks as investment incentives, as well as the provision of subsidies and cash
grant. Notably, in the case of Singapore, the investment promotion agency EDB has
the authority to negotiate, allowing it to provide exceptional incentives including cash
to promote important foreign investment. Korea also has a relatively competitive
incentive system.

Ⅳ
Investment Attractiveness Survey

of Major Asian Countries
1. Results by Factor
2. Comprehensive Comparison
by Country
IV Investment Attractiveness Survey of Major Asian Countries
◦ This survey was conducted by KOTRA's overseas KBCs (Korea Business Centers) to
compare the investment attractiveness of six major Asian countries including Korea.
Nineteen factors including market size, location conditions, and tax were evaluated on
a scale of 1 point (very bad) to 10 points (very good).
◦ 261 companies in 17 countries around the world responded to the survey. Of these,
121 were based in Asia and Oceania, accounting for 47% of the total, while 87 or 33%
were from Europe, and 53 or 20% were from North America.
◦ Of the respondents, those in services (finance, realty, consulting, etc.) were the largest
group, with a 54.4% share. This was followed by the manufacturing sector (machines,
semiconductors, electric and electronics, new and renewable energy, etc.) with 40.4%,
and by the public institutions, construction sector, and agricultural sector, with 2.4%,
1.6%, and 1.2%, respectively.
◦ Of the respondents, 31% invested in Korea and entered the Korean market, while
69%, well over twice of invested, did not enter the Korean market.
<Classification of Respondent Companies>
Public Construction Agriculture

Insitution 2% 1%
3%
North
America
20% Entry
31%
Asia-
Oceania
47% Manufacturing
40% Service
Non‐Entry 54%
69%
Europe
33%
Country Entry/Non-Entry Industry
IV. Investment Attractiveness Survey of Major Asian Countries 145

1 Results By Factors
SCORE
Market Size SCORE
Market Growth Potential
10 10
8.93
8.59
8 8
6.76 6.6
5.78 5.8 6.08
6 5.36 5.45 5.6 6 5.64 5.57
4 4
2 2
0 0
KOREA TAIWAN MALAYSIA SINGAPORE CHINA HONG KONG
SCORE Site LocationAvailability SCORE Site Location Cost

10 10
8 7.52 8 7.58
6.56 6.21 6.3
5.86 5.79 5.82
6 5.48 5.14 6
4.87
4.47
4 4
2 2
0 0
KOREA TAIWAN MALAYSIA SINGAPORE CHINA HONG KONG KOREA TAIWAN MALAYSIA SINGAPORE CHINA HONG KONG
◦ In the category of market, China got high score over 8 points. Korea is followed as
2nd which reflects the Korean market's competiveness. It is very meaningful
considering the difference of territory size between two countries.
◦ In terms of site location, China again got good score. Korea is estimated as 2nd best
in site location availability.

SCORE Human Resources Quantity SCORE Human Resources Quality
10 10
8.16
8 7.61 7.7
8 6.95 7.28
6.73
6.3 6.33 6.16 6.35 6.22
6 6 5.5
4 4
2 2
0 0
SCORE Human Resources Cost SCORE Education

10 10
7.78 7.92
8 8 7.14
6.51 6.83
6.2 6.37
5.95 5.71 5.9
6 5.34 6 5.25
4 4
2 2
0 0
◦ In the category of human resources, Korea got high scores, especially in the quality of
human resource. Korea is famous for its enthusiasm for education which results in
572,000 bachelor degree holders and above every year.

SCORE Tax Level Intellectual Property Right Protection
SCORE
10
10
8 7.72
8 7.09
6.49 6.48
5.99 6.07 6 6.35 6.38
5.67 6.01
6 6
4 4 3.61
2 2
0 0
SCORE Logistics Convenience SCORE SupplyChain

10 10
7.96
8 7.6 7.41
7.13 8 7.15
6.84 6.69
6.28 6.32 6.36 6.08 6.1
6 6
4 4
2 2
0 0
◦ In corporation circumstances such as Intellectual Property Rights protection, logistics,

and supply chain, Korea is ranked 2nd or 3rd among six countries. Even though
Korea has low level of corporate tax following Singapore and Hong Kong, investors
gave low points on Korea which shows that Korea needs to provide active PR about
its circumstances.

Transparency of Government's Policy Government's Incentives for Investment
SCORE SCORE
10 10
7.7
8 8 7.05
6.45 6.63 6.67
6.05 6.03 6.08 5.73 6.06
5.7
6 6
4.48
4 4
2 2
0 0
SCORE Technological Maturity SCORE InnovationClimate

10 10
8.03 7.81
8 7.29 7.35 8 7.49 7.59
6.63 6.56
6.05 6.01
5.64 5.67
6 6
4 4
2 2
0 0
◦ The transparency of Korean government's policy and incentives are estimated 2nd best
in comparison with other countries, reflecting development of Korean government's
activity.
◦ Korea got 1st ranking score over 8 points technological maturity and 2nd in
innovation climate. Since these factors cannot be developed in short period, it is a
very encouraging result for Korea.

SCORE Infrastructure SCORE Language
10
10
8.31 8.03
8.21
7.79 7.58 8
8 6.85
6.83
6.31 5.79
6 5.53
6 5.35
4.81
4 4
2 2
0
0
◦ In the category of infrastructure, Korea got 2nd highest score following Singapore.
However, in language circumstance, Korea ranked 4th among six countries with the
lowest score it has got among the categories.
<Total Score and Ranking of the Survey>
S co re
6 .9 8
7
6 .8
6 .8
6 .6 6 .5 4
6 .4
6 .2 1 6 .2 2
6 .2 6 .1 4
5 .8
5 .6
K O RE A T A IW A N M A L A Y S IA S IN G A P O R E C H IN A HO NG K O NG
▸ In terms of the total score, Singapore earned 6.98 points out of a possible 10-point
score, ranking 1st among the six countries. Korea earned 6.8 points, ranking 2nd, and
thus surpassing Hong Kong. This is because Korea earned better scores in the
innovative environment and technological maturity categories than Hong Kong.
▸ In terms of the total score, Korea was placed 0.18 points behind Singapore and 0.26
points ahead of Hong Kong. 3rd-placed Hong Kong was a big 0.32 points ahead of
4th-placed China. Although China boasts a high level of investment attractiveness
level to its huge market size, its overall investment environment is less competitive.

2 Comprehensive Comparison by Country
◦ The main survey results are shown in radiational graphs and compared, distinctively
showing each country's superior and inferior features.
◦ Taiwan, Malaysia, and China have almost no factor in which they earned a high score
of over 8 points, making the area formed by connecting each apex of the graph very
small compared with Singapore, Korea and Hong Kong. On the other hand,
Singapore, Korea and Hong Kong, having a number of factors with a high score, have
the area formed by connecting each apex of the graph rather large.
◦ Korea boasts technological maturity and excellent infrastructures as its competitive

advantages, and offers superior human resources as an additional strength. In
addition, market size and market growth potential are estimated as attractive factors
of Korea. However, its proficiency in foreign languages is its weak factor.
◦ Taiwan and Malaysia earned low scores overall, but each category was equally well
developed. Taiwan boasts technological maturity as its greatest strength while
proficiency in foreign languages is a weakness. Malaysia boasts foreign language
proficiency as its greatest strength, while its market size is a weakness.
◦ Singapore is superior in terms of state software factors such as foreign language

proficiency, infrastructures, and the level of human resources. Investment incentives
constitute a strength, unlike the other countries. As with Hong Kong, the cost of
location and wage costs due to high prices constitute a major weakness. Also, the city
state of Singapore's market size received a low score.
◦ China earned an overwhelmingly high score in terms of market size, indicating

market size as China's greatest strength in regards of investment environment. On the
other hand, foreign language proficiency, the level of human resources, and
infrastructures all received low scores, indicating that China's software factors were
evaluated as low by foreign investors.

◦ Hong Kong is superior in terms of foreign language proficiency, and infrastructures,
but the high location costs and high labor costs due to high prices are great
weaknesses for Hong Kong.
◦ In conclusion, foreign investors perceive Korea's investment environment as being

highly competitive among the six Asian countries after Singapore.

<Comprehensive Comparison by Countries>
KOREA TAIWAN
Market Size Market Size
10 10
Site Location
Language 8 Site Location Cost Language 8 Cost
6 6
4 4 Human Resources
Human Resources Education
Education Quality
Quality 2
2
0 0
Technological Human Resources
Maturity Cost
Maturity Cost
Government's Government's
Incentives Incentives for Infrastructure
Infrastructure Investment
for
Investment Transparency of
Transparency of Government's
Government's Policy
Policy
MALAYSIA SINGAPORE
Market Size
Market Size 10
10 Site Location
Site Location Language 8
Language Cost
8 Cost
6
6
4
Human
4 Human Resources Education Resources
Education
2
Quality 2 Quality
0
0
Human
Technological
Resources
Maturity Cost Maturity
Cost
Incentives for Infrastructure Incentives for Infrastructure
Investment Investment
Transparency of Transparency of
Policy Policy
CHINA HONG KONG

Market Size
Market Size 10
10
Language 8 Site Location Cost
Language 8 Site Location Cost
6
6
4
Human
4 Human Resources Resources
Education Education
2 Quality 2 Quality
0 0
Technological Human Resources Technological Human

Maturity Cost Maturity Resources Cost
Incentives for Infrastructure Incentives for Infrastructure
Investment Investment
Transparency of Transparency of
Policy Policy

Ⅴ
Conclusion
V Conclusion
◦ This book presents a comparison survey of the investment environment of Korea,

Taiwan, Malaysia, Singapore, China (Beijing), and Hong Kong. Each one of these six
Asian countries is now making its presence strongly felt in the global economy, and
each continues to grow at a considerable pace. As such, this book alone cannot
distinctively define the investment environment of any one particular country.
◦ This research can offer a comparative - albeit not absolute - evaluation of the
strengths and weaknesses of these countries' investment environments, since it is
based on the research conducted by KOTRA's overseas KBCs and on a survey of
potential foreign investors.
◦ Singapore is superior in terms of the business environment and living environment,

except in respect of its high wage and location costs. The country also implements an
effective investment incentive system. Hong Kong, despite its high location costs,
offers favorable tax rates and a free financial environment, creating a good investment
environment. Korea and Taiwan show similar levels in various factors such as the
business environment (infrastructures and location costs) and the living environment,
but the foreign investors surveyed indicate that Korea is more competitive. Malaysia
is competitive in terms of its location conditions and labor costs, and uses the English
language in everyday life, making it favorable for foreign investment. However,
Malaysia is less competitive in terms of the level of its human resources. Beijing
(China) is superior in terms of location and labor costs, and is also competitive in
terms of the level and supply of human resources. However, Beijing (China) makes its
investment environment less competitive with regard to infrastructures and various
systems, compared with the other countries. Nonetheless, thanks to its vast market
and huge potential for market growth, foreigners will continue to invest in China.
V. Conclusion 157
◦ Korea, overall, has an investment environment of more than average level. Notably,
its high technological maturity, innovative environment, and excellent human
resources - seen as advanced "infrastructures" which cannot be achieved in a short
period of time - are widely recognized as attractive points by foreign investors, which
is distinctively encouraging for Korea. Thus, Korea needs to promote foreign
investment in high technologies and R&D centers which can use the country's major
strengths, such as its excellent human resources and its technological superiority.
◦ Long-term efforts and clarity of vision are required to create a favorable and excellent
business environment to assist and vigorously promote foreign investment. The
promotion of foreign investment will certainly help bring about the transfer of
advanced technologies to the country, create more jobs, and enhance our international
competitiveness. Korean government will make efforts to establish business-friendly
environment consistently.

<Comparison of Major Factors>
Business Environment Korea Taiwan Malaysia Singapore China (Beijing) Hong Kong
∙US$ 165~248
Factory Land Purchase Costs ∙US$ 23~843) ∙Land prices rose
(㎡, the level of Gyeonggi-do*) ∙US$ 319 1) ∙US$ 365~4572) ∙Lowest land price ∙US$ 117~5274) sharply, even reaching ∙US$ 312
*Capital Region among the six countries up to 77% of Korea's
level
∙US$ 16
Office Rental Costs ∙US$ 81
∙US$ 24 for Gangnam's
(㎡, the level of Gangnam*) ∙US$ 21.64 ∙US$ 16.5 ※ In 2009, dropped by ∙US$ 20.38 ∙US$ 107
highest rate (Gangnam
*Center of the city 20%
Finance Center)
∙US$ 1,083
∙US$ 900 ∙US$ 4,444 ∙For managers, 38% of
Monthly Wages (Managers) ∙US$ 2,835 ∙US$ 1,975 ∙Lowest labor cost ∙Highest labor cost the Korea's level. Prices ∙ US$ 2,860 5)
among the six countries among the six countries rose, but labor costs
are still competitive
Annual number of university ∙572,000 ∙287,000 ∙97,000 ∙38,000 ∙210,000 ∙43,000
graduates of bachelor's level or ∙76 per every 10,000 ∙120 per every 10,000 ∙35 per every 10,000 ∙83 per every 10,000 ∙121 per every 10,000 ∙62 per every 10,000
higher people people people people people (41 for all China) people
1) Based on Gyeonggi-do Banwol Industrial Complex.

2) Based on the Daewon Industrial area of the northern industrial parks (near Taipei).
3) Based on the major industrial park in Selangor.
4) Minimum and maximum prices in Singapore's industrial parks.
5) Based on the highest wages of managers and assistant managers in Hong Kong.
6) Public services fees vary according to the range of consumption amount, and this table is based on the general ranges.
Comparison of Major Factors 159

Business Environment Korea Taiwan Malaysia Singapore China (Beijing) Hong Kong
∙Collective labor disputes
: 2,679 (Jan~Aug 2009) ∙Conflicts between
∙Labor disputes ∙Labor disputes
∙Dispute arbitrations ∙The Communist Party's companies and
: 115 (2008) ∙Labor disputes : 118 (2008)
Number of Labor Disputes filed : 302 (2007) influence prevails, employees : 120 (2008)
∙Dispute arbitrations : 19,729 (2007) ∙No strikes held over
∙Strikes are banned weakening unions' ∙Labor disputes
filed : 885 (2008) the last fews years.
cohesion and : 4 (2008)
negotiating power
∙22% ∙25% ∙18%
Corporate Tax Rates ∙Will be lowered to 20% ∙Will be lowered to 20% ∙25% ∙Will be lowered to 7% ∙25% ∙16.5%
in 2012 in 2010 in 2010
∙19 airports are ∙5 major airports are ∙Tianjin Port near
operated, of which two operated Beijing handles 35.593
∙Incheon Airport
are int'l airports. ∙The new int' airport ∙Changi Airport handles million tons of cargo, ∙Hong Kong Int'l Airport
handles 2.42 million
∙Taoyuan Int'l Airport handles 1.2 million 25 million TEUs per and 230,000 handles 2.44 million
tons per year
handles 1.88million tons of cargo per year year passengers per year TEUs per year
Logistics environment ∙Korea's largest port,
tons of cargo per year ∙7 ports are operated ∙Singapore Harbor ∙Beijing Int'l Airport ∙Hong Kong Int'l Airport
Busan Port, handles
∙Of the 4 int'l ports, the ∙The two ports, Port handles 29 million handles 1.37 million handles 3.62 million
13.45 million TEUs per
largest, Kaohsiung Kang and Tanjung TEUs per year tons of cargo, and tons of cargo per year
year
Port, handles 970,000 Pelepas Port, handle 55.94 million
TEUs per year 10 million TEUs per year passengers per year
∙Infrastructures for public ∙Public services in
∙Public services are ∙Basic public services
Public Services6) services are well waterworks, gas and ∙Public services are
stable, and the fees are well developed, ∙Overall public services
(Industrial, excluding the basic developed nationwide, electricity are well stable, and their
are somewhat low and their quality is are well provided
fees/US$) and public service developed, and the quality is excellnet
compared to Korea high
fees are not high fees are low
Gas (㎥) 0.52 0.44~0.49 0.16 1.41 0.27 0.48
Electricity (kwh) 0.04~0.05 0.05~0.06 0.08 0.17 0.09 0.10
Tap water (㎥) 0.32 0.19 0.62 0.81~0.97 0.78 0.54

Living Environment Korea Taiwan Malaysia Singapore China (Beijing) Hong Kong
∙US$ 3,125~6,597
Apartment Rental Costs ∙US$ 1,200~2,4007) ∙Residential costs are ∙US$ 512~878
(Districts favorable for foreigners, ∙Residential costs are the highest of the six ∙Residential costs are
∙US$ 1,373~2,423 ∙US$ 1,000~1,200 ∙US$ 2,600~ 4,935
the level of Gangnam (Seoul), higher than Korea's countries, and are the lowest of the six
90~120㎡) overall level higher than Korea's countries
level
∙A national medical ∙A superior national ∙A national medical
insurance system is medical insurance service system is
∙No national medical
implemented, allowing system is implemented, implemented, but ∙No national medical
insurance system ∙No national medical
foreigners to be insured offering low premiums foreigners are not insurance system
exists insurance system
∙ Overall medical services and high-quality permitted to insure exists, but national
∙The government exists, but individuals
are excellent, and services themselves under the hospitals offer low
promotes medical must deposit money in
medical costs are not ∙Foreigners, if staying system fees, allowing citizens
combined tourism, and MediSave
expensive for over 4 months, ∙Overall medical to afford to use the
is continuing to ∙English is an official
Medical services ∙38 hospitals nationwide must be insured services are services
improve the medical language, causing no
can provide medical ∙Medical personnel's insufficient, and ∙Medical services are
service environment problems for
services to foreigners, English-language citizens encounter good quality, and
∙English is used in foreigners wanting to
12 of which are proficiency is lengthy queues for the English is spoken,
everyday life, boosting use hospitals, and the
located in Seoul generally excellent services allowing foreigners to
foreigners' service quality is
∙Medical personnel's ∙IC cards containing ∙Foreigners subscribe use hospitals
convenience when excellent
English-language info on patients' medical to commercial conveniently
using hospitals
proficiency is history are used, insurances, and use
insufficient making diagnosis easy general hospitals
7) Based on Mont Kiara, a favorable district for foreigners.

Living Environment Korea Taiwan Malaysia Singapore China (Beijing) Hong Kong
∙The public ∙The public
transportation system transportation system
∙The public
- including subways, - including subways,
transportation system
buses and taxis - is buses and taxis - is
- including subways,
well developed. In well developed
buses and taxis - is ∙Many subway and bus ∙Public transportation -
Seoul, transportation ∙Regarding buses, ∙The public
convenient lines are operated including buses,
cards can be used for foreign- language transportation system
∙Buses are deployed at ∙Subway services are subways and trams -
public transportation announcements are is not well developed,
Transportation System shorter intervals convenient for is well developed
∙Discounts are provided provided, boosting so citizens mostly use
during rush hours, and foreigners. Buses are ∙Prepaid transport
to subway and bus foreigners' private cars, taxis, or
express buses are not greatly used by cards are useable for
transfer services convenience. However, motorcycles
operated foreigners all transport means
∙Foreign-language the intervals between
∙Rechargeable subway
announcements are buses are inconsistent
cards services are
provided, and efforts ∙Discounts are provided
provided
to boost foreigners' for bus and subway
convenience continue transfers
∙45 ∙48 ∙30 ∙50
∙3.6 per every 10,000 ∙0.23 per every 10,000 ∙0.39 per every 10,000 ∙1.8 per every 10,000
foreigners ∙18 foreigners foreigners ∙12 foreigners
Number of Foreign Schools ∙25 foreign schools or ∙0.49 per every 10,000 ∙Public schools also ∙Public schools also ∙1.5 per every 10,000 ∙Public schools also
56% of the total are foreigners use English, making use English, making foreigners use English, making
located in Seoul and them accessible to them accessible to them accessible to
the Greater Seoul Area foreigners foreigners foreigners

Investment System Korea Taiwan Malaysia Singapore China (Beijing ) Hong Kong
Special treatment for ∙Incentives are ∙Incentives are provided to
∙Equal treatment is ∙Equal treatment is ∙Equal treatment is
domestic and foreign provided to foreign ∙Equal treatment is given foreign companies in
given given given
companies companies certain categories
∙Subsidies (for the
establishment of regional
Major Incentives ∙Tax breaks ∙Tax breaks ∙Tax breaks ∙Tax breaks headquarters of
multinational corporations)
∙Tax breaks
∙Introduction of ∙Introduction of ∙Attraction of headquarters
advanced technologies advanced technologies ∙Introduction of new of multinational corporations
∙Industrial Innovation
Purpose of Incentives ∙Advancement of ∙R&D technologies ∙Advancement of
∙R&D
business-supporting ∙Development of ∙Realization of business hub hight-tech industries and
services services industries services ∙No incentive system
∙Pioneer Status (5 ∙Pioneer Status (5~15 years exists
years of income tax of exemption from corporate ∙Subsidies for regional ∙A favorable business
∙Tax breaks breaks) tax) headquarters of environment for
Types of Incentives ∙Site location support ∙Tax breaks ∙Investment tax breaks ∙Expansion of production multinational corporations foreigners is created
∙Cash support (60% deduction on facilities (The tax rate ∙Tax breaks (corporate in whole, making it a
capital expenditures applicable for up to 5 years income tax and export tax) powerful attraction
within 5 years) applies for 10 years)
∙Conditions can be negotiated
∙EDB has the authority to
∙Certain limited negotiate, and active
conditions can be ∙Special cases can be negotiations are possible
Flexibility of Incentives - -
negotiated (cash negotiated ∙Exceptional conditions
support) including cash can be
offered for investment with
high potential

<REFERENCES>
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Authority
2008 Analysis of Traffic Statistics by Year and Route, Korea Express Corporation
2008 White Paper on Labor, Ministry of Labor
2008 Wage Trend and 2009 Wage Prospects, Monthly Labor Review, Korea Labor
Institute
2008 Korean Industries' Customer Satisfaction Index (KCSI), KMAC
First Quarter 2009 Office Market Report, R2 Korea Real Estate
2009 White Paper on Intellectual Properties, Statistics Korea
2009 Special Resolution 301 Report
An Analysis of Foreign Labor Market, and a Study on the Improvement of Mid- and
Long-Term Management Systems, Korea Labor Institute, 2007
Major countries' Information and Communication Services - Asia/Oceania, KOTRA,
National IT Industry Promotion Agency, 2009
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Foreigner Investment Guide (2008), Invest Korea (KOTRA)
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NHIC Health Insurance Policy Institute (www.nhic.or.kr)
MLTM Real Estate Industry Division (www.mltm.go.kr)
Gunsan, Daebul and Masan FTZ Management Authority, MKE FEZ Center (www.fez.go.kr)
MOST (www.mosf.go.kr)
Naver Real Estate (land.naver.com)
Naver Regional Information (local.naver.com)
MOL (www.molab.go.kr)
Daum Real Estate (realestate.daum.net)
MOLEG (www.moleg.go.kr)
Real Estate 114 (www.r114.co.kr)
Seoul Foreign School (www.sfs.or.kr)

Seoul City Search Portal (search.seoul.go.kr)
Seoul City Transport Headquarters (transport.seoul.go.kr)
Onnara Real Estate Info Portal (www.onnara.go.kr)
IIAC (www.airport.kr/iiac)
Gas Station Info System (Opinet) (www.opinet.co.kr)
MKE (www.mke.go.kr)
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KOGAS (www.kogas.or.kr)
KLI (www.kli.re.kr)
KICOX FEMIS (www.femis.go.kr)
KICOX Industrial Survey Team
K-water (www.kwater.or.kr)
KEPCO (www.kepco.co.kr)
KIPF (www.kipf.re.kr)
KORAIL (www.korail.com)
Korea Kent Foreign School (www.kkfs.org)
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IMD World Competitiveness Yearbook, IMD, 2009
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PCT Yearly Review 2008, WIPO (www.wipo.int)
Prices and Earnings, UBS, 2009
SK Telecom (www.sktelecom.com)
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References 165
KOTRA 09-046

Major Asian Countries
President & CEO ❚ Hwan-Eik Cho
Publisher ❚ KOTRA
Publication date ❚ Dec, 2009
Address ❚ 6th fl. KOTRA bldg. 300-9 Yomgok-dong
Seocho-gu Seoul, Korea 137-749

The Investment Environments of Major Asian Countries

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