Puerto Rico Seeks to Attract South Korean Companies with Tax Incentives

In a move to diversify Puerto Rico's economic landscape and attract foreign investment, Accipital, an international alternative assets investment management firm, has joined forces with DECA Analytics, a Puerto Rican corporate advisory firm. The two companies have signed a Memorandum of Understanding (MOU) to promote Puerto Rico's Tax Incentive Code (Act No. 60-2019) specifically to South Korean businesses, potentially opening new avenues for economic growth and job creation on the island.

The partnership aims to leverage Puerto Rico's attractive economic environment and unique incentive programs to entice South Korean companies looking to expand their operations in the U.S. market. This initiative comes at a time when Puerto Rico is actively seeking to position itself as a competitive destination for international businesses, particularly in the wake of economic challenges and natural disasters that have impacted the island in recent years.

Under the terms of the MOU, Accipital and DECA will collaborate on outreach efforts, including tailored consultations, webinars, and events designed to showcase the benefits of establishing a presence in Puerto Rico. The partnership will combine Accipital's cross-border financial expertise with DECA's in-depth knowledge of local incentives to provide comprehensive support for South Korean firms exploring opportunities on the island.

Corey Hawk, Director of Investments for Accipital, highlighted a significant gap in the current business landscape of Puerto Rico, noting that while many large multinationals operate on the island, Korean companies are conspicuously absent. This observation suggests an untapped potential for economic cooperation between South Korea and Puerto Rico, which this partnership aims to address.

The initiative is expected to have far-reaching implications for Puerto Rico's economy. Aurelio Fuentes, Co-Founder & Partner at DECA, emphasized the potential for creating high-paying jobs for Puerto Ricans as a result of increased foreign investment. This could provide a much-needed boost to the local job market and contribute to the island's overall economic development.

Puerto Rico's Tax Incentive Code, enacted in 2019, offers significant benefits to companies that establish operations on the island. These incentives are designed to make Puerto Rico an attractive option for businesses seeking to enter the U.S. market while benefiting from a favorable tax environment. By focusing on South Korean companies, this partnership aims to diversify the pool of international investors on the island and strengthen economic ties between Puerto Rico and East Asia.

The collaboration between Accipital and DECA Analytics represents a strategic approach to economic development, leveraging Puerto Rico's unique position as a U.S. territory with its own tax incentive structure. If successful, this initiative could serve as a model for attracting investment from other countries, potentially transforming Puerto Rico into a global hub for international business operations.

As Puerto Rico continues to recover from recent economic setbacks and natural disasters, initiatives like this partnership play a crucial role in rebuilding and diversifying the island's economy. By attracting foreign investment and creating new job opportunities, Puerto Rico can work towards achieving long-term economic stability and growth.

The success of this venture could have broader implications for international business relations, potentially paving the way for increased economic cooperation between Puerto Rico and other Asian economies. As companies worldwide seek to optimize their operations and tax strategies, Puerto Rico's unique offerings could become increasingly attractive to a global audience.