Subject

[Registration & Licensing] Is the establishment and registration process for a commercial business the same as that for production-oriented companies?

• If you start a company involving profit-making business such as sales and distribution, not production activities, you need to set up a place of business. The procedure on establishing such an office is the same as the aforementioned business establishment process.

[Labor Management & Tax] I'd like to know about how to hire North Korean workers

• The employment will be made after enough discussion with the KIDMAC. If you seek workers through an employment agency, you have to pay USD 17 per person. (See the page concerning employment process and conditions.)

[Labor Management & Tax] What's the wage system for North Korean workers?

• The minimum wage has been USD 70.355 since May 1, 2014. The minimum wage increases every year within a range of 5 percent in accordance with the district's labor regulations. The increase will be decided jointly by the North Korean Central Special Development Guidance Bureau and the KIDMAC.

[Labor Management & Tax] Are there any specific tax duties in the complex?

• Yes. There's a variety of tax duties, including company income tax and personal income tax. (See the related page.)

[Labor Management & Tax] What's the accounting system in the complex?

• You are required to use the "USD" currency unit in the account books, and the fiscal year is from January 1 to November 31. Every company is required to get its accounting documents checked and to submit them to the North’s tax office in the district within three months before the end of the fiscal year. (See the related page.)

[Labor Management & Tax] Where do I go to inquire about employment and tax systems in the complex?

• Visit the General Support Center in the complex or call the person in charge of the matters at the KIDMAC.

[Labor Management & Tax] Tell me more about the company income tax.

• You are required to pay company income tax that amounts to 10 percent (ordinary business type) to 14 percent (encouragement business type) out of business profits. Companies from the production sector that have run for more than 15 years from the year when they started making profits are exempted from the company income tax. They are also given 50-percent tax exemption benefits for three years. (See the related page.)
• Companies that have difficulties figuring out the exact profits they made over the year, as well as companies that earned less than USD 3 million in sales and revenue over the year, can pay only 1.5 or 2 percent out of their sales or revenue.

[Residence Conditions] What are residence conditions for employees working in the complex, including accommodations?

• Employees working in the complex can stay in a dormitory that their company offers, or accommodations run by Hyundai Asan. There's no public transportation available in the complex, you have to use a company-owned or personal car.

[Residence Conditions] What kind of amenities are available in the complex?

• There are convenience stores, Woori Bank and recreational facilities, including indoor golf clubs, as well as duty-free shops, Chinese restaurants, dry cleaner's and pubs. Please see the ‘Work & Enjoy @ GIC’ page in Investment Guide section of this website.

[Residence Conditions] Are there eateries in the complex?

• There are cafeterias run by the KIDMAC, the KICOX and Hyundai Asan. Hyundai Asan also runs Korean, Chinese, and fusion-cuisine restaurants and draft beer houses.