Foreign Investment Company
| Classification | Evidence | Contents | ||||
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| Tax Cuts | Article 9 of the Foreign Investment Promotion Act Article 121-2 of Restriction of Special Taxation Act and Article 116-2 of the Enforcement Decree of the same Act Article 10 of the Ordinance on Corporate and Investment Attraction City Tax and Gu/Gun Tax Reduction Ordinance |
Investment Project for New Growth Business and Foreign Investment Area (individual) ∙Business belonging to new growth engines and source technologies -Future vehicles, intelligent information, next-generation software, bio health, new energy industry/environment, convergence materials, robots, aerospace, etc. ∙Individual foreign investment zone investment project -Investment: $30 million in manufacturing, $20 million in tourism, $10 million in logistics, and $2 million in R&D ·Expert: more than 10 (master's degree and three years' experience)
【 Investment Project for Special Economic Zone and Foreign Investment Zone (complex) 】 ∙Free Trade Area: Manufacturing over $10 million Free Economic Zone -Investment: $10 million in manufacturing, $10 million in tourism, $5 million in logistics, and $1 million in R&D Expert: more than 10 (master's degree and three years' experience) ∙Investment Project for Complex Type Foreign Investment Zone -Investment: $10 million in manufacturing and $5 million in logistics
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| Cash Grants | Article 14-2 of the Foreign Investment Promotion Act and Article 20-2 of the Enforcement Decree of the Same Act The Guidance for the Operation of the Cash Support System Article 15-2 of the Ordinance on Corporate and Investment Attraction |
∙Application Requirements: More than 30% of foreign investment ratio ∙Support object -Business belonging to new growth engine industry or possessing original technology New establishment and expansion of High value-added high-tech parts and materials factory -New establishment and expansion of factory facilities that create large-scale new employment (real estate: 50, environment: 100, finance: 200 and manufacturing: 300) -New establishment and expansion of research facilities related to industrial support service business and high technology-related projects (master's degree or bachelor's degree + more than 3 years of research experience, and at least 5 regular research personnel)
∙Purpose of Use -The purchase or rent cost of land or building -Construction cost of factory or research facilities -Purchase cost of capital goods and research equipment -Infrastructure installation costs such as electricity and communication facilities -Employment subsidy and education and training subsidy *The city hall's own location support, employment and education and training subsidies, and facility subsidies cannot be duplicated. ∙National expenditure share ratio: (the metropolitan area): 30:70 / (the non-metropolitan area): 60:40 |
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| Common Standard | Article 18 of the Ordinance on Corporate and Investment Attraction and Article 11 of the Enforcement Rule of the same Ordinance Article 14-2 of the Foreign Investment Promotion Act and Article 20-1 of the Enforcement Decree of the Same Act Article 6 of the Standard for State Financial Support for Foreign Investment Inducement Activities of Local Governments |
【 Target Business - in the following categories 】 ∙Individual foreign investment zone investment business ∙Business-related to new growth industry and original technology ∙Foreign investment business with sales of more than 1 million dollars and 30 regular employees as a regional special industry, such as automobile industry, shipbuilding·marine industry, fine chemical industry, environmental industry, non-ferrous new material industry, etc. ∙Foreign investment business with sales of more than 10 million dollars and 50 regular employees 【 Conditions of Application 】 ∙For foreign investment, the foreign investment ratio shall be more than 30% or foreigners shall be the largest shareholders. ∙The total support fund for foreign-invested companies is not allowed to exceed 50% of the amount of foreign investment. ∙Support for various subsidies, etc. is limited to cases where foreign investment is confirmed, such as a contract for moving in the UFEZ or a sales contract. |
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| Location Support | Article 12 of the Ordinance on Corporate and Investment Attraction and Article 5 of the Enforcement Rule of the same Ordinance Article 14-2 of the Foreign Investment Promotion Act and Article 20-1 of the Enforcement Decree of the Same Act Article 6 of the Standard for State Financial Support for Foreign Investment Inducement Activities of Local Governments |
【 Conditions of Support 】 ∙Purchase and lease of part or all of a specific industrial complex -Including foreign investment that exceeds the size of the individual foreign investment zone -Land purchase ratio: (the metropolitan area) 30:70 / (the non-metropolitan area) 60:40 ∙Partial subsidy for pre-sale prices when moving into a foreign investment zone -Limited to the difference between the creation cost and the sale price of the individual foreign investment zone -Difference subsidy ratio: (the metropolitan area) 40:60 / (the non-metropolitan area) 75:25 ∙Public property in national industrial complexes, general industrial complexes, and agricultural and industrial complexes is supported for pre-sale costs below the cost of creation. ∙If an industrial complex developed and owned by a private enterprise is sold at less than the construction cost, the difference between the sales price and the construction cost is subsidized. -Limited to individual foreign investment zone investment. -Difference subsidy ratio: (the metropolitan area) 40:60 / (the non-metropolitan area) 75:25 ∙Funding for foreign investment zone creation and development -Road and water facilities, city gas and power facilities, and wastewater treatment facilities -Funding ratio: (the metropolitan area) 40:60 / (the non-metropolitan area) 75:25 【 Conditions of Support 】 ∙The company shall carry out the supported business for more than 10 years. This subsidy may not exceed 50% of the normal sale price. ∙The company may not dispose of the supported purchase site within five years. . If the company disposes of it, the company shall return the supported fund. ∙The subsidy for the difference in sales price will be limited to the land owned by the implementer of the industrial complex development project, and follow-up support will be possible depending on the investment performance. ∙Infrastructure support will be able to be supported according to construction performance. ∙In the case of land purchased for rental purposes, funding is limited to land in foreign investment zones and land owned by the implementer of the industrial complex development project. |
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| Employment Wage Subsidy | Article 13 and 14 of the Ordinance on Corporate and Investment Attraction and Article 7 and 8 of the Enforcement Rule of the same Ordinance Article 14-2 of the Foreign Investment Promotion Act and Article 20-1 of the Enforcement Decree of the Same Act Article 6 of the Standard for State Financial Support for Foreign Investment Inducement Activities of Local Governments |
∙If the company hires more than 20 new employees within 5 years after registration as a foreign-invested company, City Hall will support up to KRW 500,000 per new employment every month within 6 months. -This subsidy is limited to new plant installations. -When the company establishes a new research facility, the city hall will provide this subsidy for hiring more than 10 new employees. -The government also supports the amount supported by the local government (Maximum KRW 3 million per person). -The company shall apply for this subsidy in the following year after hiring new employees. -The company shall maintain the employment of the supported employees for three years. |
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| Education and Training Subsidy | ∙If the company conducts education and training to hire more than 20 Korean employees within 5 years after registration as a foreign-invested company, City Hall will support up to KRW 500,000 per new employment every month within 6 months. -This subsidy is limited to KRW 200 million per company. -The company shall conduct education and training for at least one month at vocational competency development training facilities. -The government also supports the amount supported by the local government (Maximum KRW 3 million per person). -The company shall apply for this subsidy in the following year after hiring new employees. -The company shall maintain the employment of the supported employees for three years. |
