For those foreign companies wishing to take advantage of the many logistics opportunities in the ASEAN region, South Korea is an excellent gateway. South Korea is located in Northeast Asia between China, and Japan, two countries with large and steadily growing economies.
South Koreas Incheon International Airport, connects to 157 cities in 49 countries, which handles in excess of 1.9 million tones each year, the world’s second largest international air cargo volume. Likewise South Koreas Busan Port, a hub seaport in the region, lies on the world’s main sea routes is linked to 45 ports in China, 60 ports in Japan, and 5 ports in Russia.
The South Korean government has recognized logistics services as being key to national development, and, in doing so, has strived to ensure that the region presents an excellent opportunity for foreign companies. These opportunities include excellent; geo-economic location, logistics infrastructure and services and tax breaks. Through the governments plan South Korea now presents business with an exceptional opportunity to efficiently manage their supply chains through diverse logistics businesses, whilst cutting logistics costs drastically.
Some of South Koreas opportunities at a glance:
· Quick Customs Service: South Korea has a real-time cargo management system operating under 24-hour-a-day customs clearance system, making it the world’s fastest customs clearance time in the world.
· Infrastructure: South Korea optimal infrastructure, especially relating to that of the construction of logistics facilities and factories, along with low rental charges for land and buildings;
· Tax breaks; Offers foreign-invested companies amazing tax breaks which include:
o 100 percent exemption for 5 years and 50 percent exemption for 2 years on both income tax and corporate tax.
o An exemption for foreign-invested companies from the ceiling on the total amount of investment.
· Zero VAT rates; on domestic goods supplied to free trade zones to be exported and goods, services and so on supplied between tenant companies
· Less red tape; With the Streamlining of administrative procedures and the introduction of the FEZ office an agency that provides business a one stop service. The region offers 38 procedures relating to legal approvals, that include construction permission and factory establishment
Don’t know where to get started? Latus can help. For more information go to: http://latus.edu.au/product/south-east-asian-logistics-management-program/