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Local Government's Foreign Investment Support Policy
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Local Government's Foreign Investment
Support Policy |
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Local Tax Exemption |
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City/
province |
Specifics |
| Seoul |
* Condition:Industry accompanying advanced technology/Industrial
support services/Companies operating in foreign investment area
* Scope of deduction:Full (100%) exemption of aquisition tax and
registration tax for the first ten years and 50% deduction
for the following five years, exemption of property tax
for the first seven years and 50% deduction for the
following three years |
| Busan |
* Condition:Industry accompanying advanced technology/Industrial support
services/Companies operating in foreign investment area
* Scope of deduction:Full (100%) exemption of aquisition tax and registration
tax for seven(7) years. then 50% deduction for three(3) years. |
* Condition: Companies stationed in FEZ (Free Economic Zone).
* Scope of deduction:Full (100%) exemption of aquisition tax and registration
tax for 15 years. |
| Daegu |
* Condition:Industry accompanying advanced technology/Industrial support
services/Companies operating in foreign investment area
* Scope of deduction:Full (100%) exemption of aquisition tax, registration
tax and property tax(building/realestate) for 10 years. then 50% deduction
for three(3) years. |
| Incheon |
* Condition:Industry accompanying advanced technology/Industrial support
services/Companies operating in foreign investment area
* Scope of deduction:Full (100%) exemption of aquisition tax, registration
tax, and property tax for 10 years. then 50% deduction for three(3)
years.
* Condition: Companies stationed in FEZ.
* Scope of deduction:Full (100%) exemption of aquisition tax and registration
tax for 15 years, Full exemption of property tax for 10 years, then
50% deduction for three (3) years. |
| Gwangju |
* Condition:Industry accompanying advanced technology/Industrial support
services/Companies operating in foreign investment area
* Scope of deduction:deduction of aquisition tax, registration tax,
property tax and realestate tax for 15 years. (deduction rate identical
in percentage to the investment quota) |
| Daejeon |
* Condition:Industry accompanying advanced technology/Industrial support
services/Companies operating in foreign investment area
* Scope of deduction:Full (100%) exemption of aquisition tax and registration
tax. Full exemption of property tax and realestate tax for 15 years |
| Ulsan |
* Condition:Industry accompanying advanced technology/Industrial support
services/Companies operating in foreign investment area
* Scope of deduction:Full (100%) exemption of aquisition tax, registration
tax, property tax and realestate tax for seven(7) years, then 50%
deduction for three(3) years |
| Gyounggi |
* Condition:Industry accompanying advanced technology/Industrial support
services/Companies operating in foreign investment area
* Scope of deduction:Full (100%) exemption of aquisition tax, registration
tax., property tax and realestate tax for 15 years |
| Gwangwon |
* Condition:Industry accompanying advanced technology/Industrial support
services/Companies operating in foreign investment area
* Scope of deduction:Full (100%) exemption of aquisition tax, registration
tax. for 15 years |
| Chungbuk |
* Condition:Industry accompanying advanced technology/Industrial support
services/Companies operating in foreign investment area
* Scope of deduction:Full (100%) exemption of aquisition tax, registration
tax and property tax, for seven(7) years, then 50% deduction for three(3)
years |
| Chungnam |
* Condition:Industry accompanying advanced technology/Industrial support
services/Companies operating in foreign investment area
* Scope of deduction:Full (100%) exemption of aquisition tax, registration
tax., property tax and realestate tax for 15 years |
| Jeonbuk |
* Condition:
-Industry accompanying advanced technology/Industrial support services/Companies
operating in foreign investment area
-Manufacturing plant with over $10 million in foreign investment stationed
in FEZ or newly constructed distribution plant with over $5 million
in foreign investment.
* Scope of deduction:Full (100%) exemption of aquisition tax, registration
tax., and property tax for 15 years |
| Jeonnam |
* Condition:Industry accompanying advanced
technology/Industrial support services/Companies operating in foreign
investment area
* Scope of deduction:
- Aquisition tax and registration tax: Full exemption for 15 years
(foreign investment portion only)
- Property tax and realestate tax: deduction 15 years. (deduction
rate identical in percentage to the investment quota) |
| Gyoungbuk |
* Condition: Those businesses that accompany advanced technology /
belong in industrial support industry / operating in foreign investment
area that are applicable to Special tax privilege restriction law
article 121, paragraph 2.
* Scope of deduction:Full (100%) exemption of aquisition tax, registration
tax., property tax and realestate tax for 15 years |
| Gyoungnam |
* Condition:Industry accompanying advanced
technology/Industrial support services/Companies operating in foreign
investment area / Companies stationed in FEZ
* Scope of deduction:
-Aquisition tax and registration tax: Full exemption for 15 years
-Property tax:
Changwon, Masan and Sachon:. Full exemption for 15 years
Others: Full exemption for seven(7) years, then 50% deduction for
three(3) years |
| Jeju |
* Condition:
1. Over $20 million in foreign investment
- Those in general recreation / amusement park equipment, tourist
hotel, marine tourism hotel or international conference facility industry
2. Manufacturing plant or new factories with over $30 million in foreign
investment
3. Over $10 million in foreign investment that are one of the following:
- Composite cargo terminal industry, formation or management of collaborated
delivery center, operation of harbor facilities or distribution industry
in adjacent estate, operation of airport facilities or distribution
within airports, and business for forming social foundation facilities.
4. Research facility with over $5 million in foreign investment and
10 or more regular employees.
* Scope of deduction:Full (100%) exemption of aquisition tax and registration
tax., and full exemption of property tax for 15 years |
1) Those applicable to subject to tax exemption under
the Article 121.2 of Special Tax Treatment Control Law
2) Hereinafter Industrial Support Service shall mean subject to tax exemption
under the Article 121.2 of Special Tax Treatment Control Law |
|
Location Support (Rent deduction on exclusive rental estate, Rental of public
property) |
|
City/
Province |
Specifics |
| Seoul |
Rent for
public property |
* Condition: Rental of city property
* Rent: 1-5% of the cost of construction |
Rent for
exclusive estate |
* Condition : Upon review of investment plans in accordance with Management
Regulation of City Properties
* Rent: Up to full(100%) exemption
* Rental period: 50 years (Application for period extension is possible during
the 50 years.) |
| Busan |
Exclusive estate |
* Extent of support
- Full exemption: Businesses with over $20 million of foreign investment
or over $1 million in case of those accompanying advanced technology
- 75% deduction: Businesses with $10 million-$20 million of foreign
investment
- 50% deduction: Businesses with $5 million-$10 million of foreign
investment
|
| Others |
* Condition:Business that: accompany advanced technology / provide
industrial support services / deals with strategic metropolitan planning
/ is a research lab / is the local HQ of a multi-national enterprise.
* Extent of support: Up to 50% deduction of building rent for up to
2 years |
| Daegu |
* Condition : Rental/use
of public property
* Extent of support
- Full exemption:
(1)Business accompanying advanced technology with over $1 million
of foreign investment
(2)Over $20 million of foreign investment
(3)On average, has over 300 employees working per day
(4)Business whose products are composed entirely out of domestic
parts/raw material, and exports over 50% of the total goods produced,
- 75% deduction:
(1) Between $10 million-$20 million in foreign investment
(2)On average, has 200-300 employees working per day
(3)Business whose products are composed of 75-100% domestic parts/raw
material, and exports over 50% of the total goods produced,
(4)A foreign investment firm that exports 75-100% of the total
goods produced.
- 50% deduction:
(1) Between $5 million-$10 million in foreign investment
(2)On average, has 100-200 employees working per day
(3)Business whose products are composed of 50-75% domestic parts/raw
material, and exports over 50% of the total goods produced,
(4)A foreign investment firm that exports 50-75% of the total
goods produced.
|
| Incheon |
* Condition: Rental/use
of public property
* Extent of support
- Full exemption:
(1) Business accompanying advanced technology with over $1 million
of foreign investment
(2) Over $20 million of foreign investment
(3) On average, has over 300 employees working per day
(4) Business whose products are composed entirely out of domestic
parts/raw material, and exports over 50% of the total goods produced,
(5) Business that exports 100% of the total goods produced
(6) Established business that meets at least one of the conditions
in (1)-(5) and has transferred into city property from elsewhere.
(7) Established business that meets at least one of the conditions
in (1)-(5)and is expanding its facilities in accordance with the
[Law for Promotion of Integrated Industry and Factory Establishment]
(8) When being leased to an administrator of a foreign school in
accordance with [Law for Promotion of Foreign Investment], article
2, paragraph 1, title 6-2 and enforcement ordinance article 2, paragraph
5, title 1.
(9) When being leased to an administrator or founder of a foreign
educational facility in accordance with [Law for Appointment and
Management of FEZ]
- 75% deduction:
(1) Between $10 million-$20 million in foreign investment
(2) On average, has 200-300 employees working per day
(3) Business whose products are composed of 75-100% domestic parts/raw
material, and exports over 50% of the total goods produced,
(4) Business that exports 75-100% of the total goods produced.
(5) Established business that meets at least one of the conditions
in (1)-(4) and has transferred into city property from elsewhere.
(6) Established business that meets at least one of the conditions
in (1)-(4) and is expanding its facilities in accordance with
the [Law for Promotion of Integrated Industry and Factory Establishment]
(7) When being leased to a medical or pharmaceutical facility
in accordance with [Law for Promotion of Foreign Investment],
article 2, paragraph 1, title 6, issue 2 and enforcement ordinance
article 2, paragraph 5, title 2 and 3.
(8) When being leased to an administrator of medical or foreigner-only
pharmaceutical facility in accordance with [Law for Appointment
and Management of FEZ], article 23
- 50% deduction:
(1) Between $5 million-$10 million in foreign investment
(2) On average, has 100-200 employees working per day
(3) Business whose products are composed of 50-75% domestic parts/raw
material, and exports over 50% of the total goods produced,
(4) Business that exports 50-75% of the total goods produced.
(5) Established business that meets at least one of the conditions
in (1)-(4) and has transferred into city property from elsewhere.
(6) Established business that meets at least one of the conditions
in (1)-(4) and is expanding its facilities in accordance with
the [Law for Promotion of Integrated Industry and Factory Establishment]
(7) Public property that got all or part of governmental industrial
complex in accordance with the [Law Regarding Industrial location
and Its Development], article 38, paragraph 4, title 2.
(8) Public property inside regular local industrial complex, metropolitan
high-tech industrial complex or agricultural/industrial complex
in accordance with the [Law Regarding Industrial location and
Its Development], article 7 and 8
(9) Public property within property sanctioned for apartment-type
factory in accordance with the [Law Regarding Industrial location
and Its Development], article 2
(10) When being leased to a residential facility in accordance
with [Law for Promotion of Foreign Investment], article 2, paragraph
1, title 6, issue 2 and enforcement ordinance article 2, paragraph
5, title 4 and 5, or facility being examined by Industrial Resources
Minister of State
|
| Gwangju |
Exclusive estate |
* Condition: High-tech or general manufacturing business with foreign
investment accounting for over 30% of its assets
* Rent : Monthly rate of 57 KRW per m2
* Extent of support
- Full exemption (50 years):Business accompanying advanced technology
with over $10 million in foreign investment
- 75% deduction (50 years):General manufacturing firm with over $5
million in foreign investment |
| Daejeon |
* Condition : Purchase, then lease foreign investment
area as defined in Law for Promotion of Foreign Investment article
18 and land belonging to those running industrial complex development
business as according to industrial site and development law article
16 paragraph 1.
* Extent of support: Lease scheduled for after the completion of the
lease complex. (Unexecuted as of July, 2007) |
Gyoung
gi |
* Condition: Business with foreign investment accounting
for over 30% of its assets that:
- accompanies advanced technology
- is in high-tech industry
- is a research facility for one of the above.
* Rent : 1% of cost of construction |
| * Rent deduction: 50%~100%, depending on Gyounggi-do regulation
for managing public assets |
| Chungbuk |
Exclusive estate 4) |
* Condition: Foreign investment firm in compliance with Foreign Investment
Promotion Law
* Rental period : 50 years
* Rent: Monthly rate of 118 KRW per m2
* Extent of deduction
- Full exemption:Business accompanying advanced technology with over
$1 million of foreign investment
- 75% deduction:General manufacturing firm with over $5 million of
foreign investment
- 50-100% deduction in case of Chungbuk's public asset, due to Chungchungbuk-do
regulation for managing public assets |
| Rent Public property |
* Rent for public property: Can be deducted by 1% of the assessed
worth of the net asset for the year
- Full exemption:Business accompanying advanced technology with over
$1 million of foreign investment or business with over $20 million
of foreign investment
- 75% deduction : Businesses with $10 million-$20 million of foreign
investment
- 50% deduction : Businesses with $5 million-$10 million of foreign
investment |
| Chugnam |
Exclusive estate 5)
|
* Condition : High-tech / advanced technology or general manufacturing
business with foreign investment accounting for over 30% of its assets
* Rent: Monthly rate of 106 KRW per m2 (50 years, renewable every 10years)
* Extent of support
- Full exemption : Business accompanying advanced technology with
over $1 million of foreign investment
- 75% deduction : General manufacturing firm with over $5 million
of foreign investment |
| Others |
* Extent of support: Rent for land/building that belongs to Industrial
complex development operator |
| Jeonbuk |
* Condition: Foreign investment firm in compliance with
Foreign Investment Promotion Law
* Extent of deduction
- Full exemption:
(1) Business accompanying advanced technology with over $1 million
of foreign investment or business with over $20 million of foreign
investment
(2) On average, has over 300 employees working per day
(3) Business whose products are composed entirely out of domestic
parts/raw material, and exports over 50% of the total goods produced,
(4) Business that exports 100% of the total goods produced
-75% deduction:
(1) Between $10 million-$20 million in foreign investment
(2) On average, has 200-300 employees working per day
(3) Business whose products are composed of 75-100% domestic parts/raw
material, and exports over 50% of the total goods produced,
(4) Business that exports 75-100% of the total goods produced.
-50% deduction:
(1) Between $5 million-$10 million in foreign investment
(2) On average, has 100-200 employees working per day
(3) Business whose products are composed of 50-75% domestic parts/raw
material, and exports over 50% of the total goods produced,
(4) Business that exports 50-75% of the total goods produced
* Rental period when moving into Gunsan free trade zone: 10 years
(extendable) |
| Jeonnam |
Exclusive estate 6)
|
* Condition: Manufacturing plant with foreign investment accounting
for over 10% of its assets
* Rent : Monthly rate of 27 KRW per m2 |
| Others |
* Condition: Rental of public property for 50 years under private
contract and rent deduction
* Extent of support
-Full exemption: Business run by foreign investment firm in foreign
investment zone,
Business in industrial service industry and/or accompanies advanced
technology,
Foreign investment firm moving into FEZ or is classified as development
industry,
Manufacturing/distribution firm station in FEZ with over $10 million
in foreign investment
-75% deduction: Manufacturing management firm with over $5 million
in foreign investment,
Business contributing significantly to expansion of social overhead
capital, coordination of industrial structure and financial independence
of the local government (Judged by the Foreign Investment Committee)
-50% deduction: National industrial complex, general industrial complex,
business moving into agricultural and industrial complex. |
| Gyeongbuk |
Exclusive estate 7)
|
* Condition: All manufacturing plants with foreign investment accounting
for over 30% of its assets
* Rent : Month rate of 91 KRW / m2(Rental period : 10 years, extendable
up to 50 years)
* Rent deduction
- Full exemption: Business accompanying advanced technology with over
$10 million in foreign investment
- 75% deduction : Manufacturing plant with over $5 million in foreign
investment |
| Others |
* Rent deduction for Industrial complex / public property
* Extent of support: 50%-100% deduction |
| Gyeongnam |
Exclusive estate
|
* Condition: Foreign investment make up for over 30% of total investment
and should also be greater than 50 million KRW.
* Extent of support
- Full exemption: Advanced technology/Industrial support service,
with over $1 million in foreign investment
- 75% deduction: Manufacturing plant, Business with over $5 million
in foreign investment |
| Others |
* Rent deduction: 50%~100%, depending on Gyoungsang name-do regulation
for managing public assets |
| Jeju |
* Rent deduction for public property for those renting
for less than 50 years
1. 100% exemption
- Business accompanying advanced technology with over $1 million in
foreign investment
- Business with over $20 million in foreign investment
- On average, has over 300 employees working per day
- Business whose products are composed entirely out of domestic parts/raw
material, and exports over 50% of the total goods produced,
- Foreign investment firm that exports 100% of the total goods produced
2. 75% deduction
- Between $10 million-$20 million in foreign investment
- On average, has 200-300 employees working per day
- Business whose products are composed of 75-100% domestic parts/raw
material, and exports over 50% of the total goods produced,
- A foreign investment firm that exports 75-100% of the total goods
produced
3. 50% deduction
- Between $5 million-$10 million in foreign investment
- On average, has 100-200 employees working per day
- Business whose products are composed of 50-75% domestic parts/raw
material, and exports over 50% of the total goods produced,
- A foreign investment firm that exports 50-75% of the total goods
produced
- National industrial complex, general local industrial complex metropolitan
plan, business moving into public area within agricultural and industrial
complex. |
2) Exclusive Estate - Pyoungdong foreign investment
area
3) 1 High-tech industry = Industry as defined
in Law for Industrial Advancement, article 5, paragraph 1
4) Exclusive Estate - Ochang foreign investment area
5) Exclusive Estate - Chunan foreign investment area
6) Exclusive Estate - Daebul foreign investment area
7) Exclusive Estate - Gumi foreign investment area
|
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Subsidy to Industrial Site (Subsidy to purchase or rental of land) |
|
City/
Province |
Specifics |
| Seoul |
* Condition : Upon purchase of city land
* Extent of support
- Payment can be made in installments for 20 years, with an annual
interest as low as 4% |
| Busan |
* Condition
- A foreign investment firm
(1) with over 1/3 of the newcomers to the area is a foreigner
(2) whose majority shareholder is a foreigner that invests in business
with advanced technology, industrial support, and other strategic
businesses run by the Busan city that have been inspected by the Minister
of State of Inspection and Economy.
- A foreign public/private research facility with over 5 full time
researchers
- A multinational enterprise with over three local HQs or an official
Korean branch
* Extent of support: 30% of purchasing cost |
| Daegu |
|
* Payment may be made in installments for up to 20 years, with 3%
annual interest
* Allowed to sell the lot at production cost |
| Others |
* Condition: Foreign investment firm, Business accompanying advanced
technology or service industry involving high-tech business
* Extent of support: Up to 50% of total investment |
| Incheon |
* Condition:Must meet
foreign investment zone conditions outlined by enforcement ordinance
of Law for Promotion of Foreign investment article 25, paragraph
1.
* Extent of support:The difference between actual lotting cost and
price as outlined in the contract. for up to 50% of actual lotting
cost |
| Gwangju |
* Condition:Business accompanying advanced technology,
service industrial support service business, metropolitan strategy
industry
* Extent of support: Up to 30% of the purchasing price for the site
(total cost×30%×support rate)
**Support rate is determined by the type the of business (10%), scale
of site purchase (50%) and workers hired (40%) |
| Ulsan |
* Condition: Must meet foreign investment conditions
outlined by enforcement ordinance of Law for Promotion of Foreign
investment article 25, paragraph 1, title 1
* Extent of support: The difference between the actual lotting cost
and price as outlined in the contract. for up to 50% of actual lotting
cost |
| Gangwon |
* Condition: Foreign investment firms as defined in
Law for Promotion of Foreign investment article 2, paragraph 1, title
5.
* Extent of support: Difference between the actual lotting cost and
price as outlined in the contract. for up to 30% |
| Chungbuk |
* Condition: Must meet foreign investment zone conditions
outlined by enforcement ordinance of Law for Promotion of Foreign
investment article 25, paragraph 1. In addition, over 30% of total
investment must be foreign, or must have a foreign majority stockholder.
* Extent of support: Difference between the actual lotting cost and
price as outlined in the contract. for up to 50% |
| Chugnam |
* Condition: Foreign investment firm as defined in Law
for Promotion of Foreign Investment article 2, paragraph 1, title
5.
* Extent of support: Difference between the actual lotting cost and
price as outlined in the contract. for up to 50% |
| Jeonbuk |
* Extent of support:
Difference between the actual rental cost and price as outlined in
the contract. for up to 50%
Difference between the actual lotting cost and price as outlined in
the contract. for up to 30% |
| Jeonnam |
* Extent of support: Difference between the actual lotting
cost and price as outlined in the contract. for up to 50% |
| Gyeongbuk |
* Upon sale of public property
* Extent of support: Between 25-100% cost deduction depending on total
amount invested, advanced technology used, number of employees, and
production/export ratio |
| Gyeongnam |
* Extent of support: Difference between the actual lotting
cost and price as outlined in the contract. for up to 50% |
| Jeju |
* Condition: Reimbursement of the difference in rent
or sales price should the firm decides to sell/rent its own property
at less than commercial value.
* Extent of support: Difference between the actual lotting cost and
price as outlined in the contract. for up to 30%
Difference between the actual l cost and price as outlined in the
contract. for up to 50% |
|
|
Subsidy to Employment/ Education and Training |
|
| City/Province |
Subsidy to Employment |
Subsidy to Education and Training |
| Seoul |
* Condition
(A) Over 10 new regular employees hired due to the foreign investment
for that year.
(B) Over 30% of total investment must be foreign investment
Must maintain (A) and (B) for over three years
* Extent of support: Up to 1 million KRW a month per every additional
regular employee hired after the 10th for up to six months (up to
KRW 200 million per company) |
* Condition
(A) Over 10 new regular employees hired due to the foreign investment
for that year.
(B) Over 30% of total investment must be foreign investment
Must maintain (A) and (B) for over three years
* Extent of support: Up to 1 million KRW per month for every additional
regular employee hired after the 10th for up to six months (up to
KRW 200 million per company) |
| Busan |
* Condition
(A) Industrial support service industry or strategy planning, for
the city that recruited over 20 new workers
(B) A research firm with over five researchers * Extent of support
- In case of (A), up to 500,000 KRW per every additional regular employee
hired after the 20th(Max. 200 million KRW)
- In case of (B), up to 50% of basic salary for 6 months for up to
6 months
- If not applicable to (A),(B), then up to 300,000 KRW for every additional
regular employee hired after the 20th (Max. 100 million KRW) |
* Condition
(A) Over 50 Koreans employed
* Extent of support
- If (A), then up to 500,000 KRW per person employed per month (up
to 200 million KRW)
- If not (A), then up to 300,000 KRW per person employed per month
for 6 months (up to 100 million KRW per firm) |
| Daegu |
* Condition: Businesses that moved within city limits
or have started a new business within city limits and has hired over
20 employees within the first 3 years.
* Extent of support: Up to 500,000 KRW per every additional regular
employee hired after the 20th for up to 6 months |
* Condition: Businesses that moved within city limits or have started
a new business within city limits and has hired over 20 employees
within the first 3 years.
* Extent of support: Up to 500,000 KRW per every additional new recruit
in need of training for up to 6 months |
| Incheon |
* Condition:Over 20 new regular employee hired
* Extent of support: Up to 500,000 KRW per every additional regular
employee hired after the 20th |
* Condition:Training session for over 20 Korean new recruits
* Extent of support : Up to 500,000 KRW per every person in training
for up to 6 months (Max. 200 million KRW) |
| Gwangju |
*Condition:Over 20 new regular employee hired
*Extent of support: Up to 500,000 KRW (minimum: 100,000 KRW) per every
additional regular employee hired after the 20th (Max. 200 million
KRW per business) for 6 months
** Support is reduced for the following:
Those over 1.5 billion KRW in investment and over 15 regular employees.
(Mining, mechanical parts production, industrial design, culture,
aerospace, nano technology, domestic robotics, next-gen electronic
finance, bio-information tech, high-tech aging treatment, etc) |
*Condition:Over 20 new regular employee hired
*Extent of support: Up to 500,000 KRW (minimum: 100,000 KRW) per every
person (Max. 200 million KRW per business) for 6 months
** Support is reduced for the following:
Those over 1.5 billion KRW in investment and over 15 regular employees.
(Mining, mechanical parts production, industrial design, culture,
aerospace, nano technology, domestic robotics, next-gen electronic
finance, bio-information tech, high-tech aging treatment, etc) |
| Daejeon |
*Condition:Business less than 5 years old since foreign
investment firm registration that hires over 20 employees inside the
city limits.
*Extent of support:Up to 500,000 KRW (minimum: 100,000 KRW) per every
additional regular employee hired after the 20th (Max. 200 million
KRW per business) for up to 6 months |
*Condition:Business less than 5 years old since foreign investment
firm registration that is training over 20 potential employees who
reside inside the city limits.
*Extent of support:Up to 500,000 KRW (minimum: 100,000 KRW) per person
(Max. 200 million KRW per business) for up to 6 months |
| Ulsan |
*Condition:Business less than 5 years old since foreign investment
firm registration that hires over 20 employees inside the city limits.
*Extent of support:Up to 500,000 KRW (minimum: 100,000 KRW) per every
additional regular employee hired after the 20th (Max. 200 million
KRW per business) for up to 6 months |
*Condition:Business that is training over 20 potential
employees who reside inside the city limits.
*Extent of support:Up to 500,000 KRW (minimum: 100,000 KRW) per person
(Max. 200 million KRW per business) for up to 6 months |
| Gyounggi |
* Condition:Foreign investment firm in investment contract with the
province or is to be occupying lease complex run by the province that
hired over 20 Koreans within first five years of business.
* Extent of support: Up to 500,000 KRW (minimum: 100,000 KRW) per
every new recruit (Max. 1 billion KRW per business) for up to 3 years |
* Condition:Foreign investment firm in investment contract with the
province or is to be occupying lease complex run by the province that
is training over 20 Koreans for hiring within first five years of
business.
* Extent of support: 500,000 KRW per every trainee (Max. 1 billion
KRW per business) for up to 6 months |
| Gangwon |
* Condition: Hired over 20 locals from the province who've lived there
for at least 6 months
* Extent of support: Up to 500,000 KRW a month per every additional
regular employee hired after the 20th (Max. 200 million KRW per business)
|
* Condition: Foreign investment firm within province that hired over
20 locals
* Extent of support: 500,000 KRW per trainee for up to 6 months (Max
100 million per business) |
| Chungbuk |
* Condition: Over 20 province locals newly hired
* Extent of support: Up to 500,000 KRW (minimum: 100,000 KRW) per
every additional regular employee hired after the 20th (Max. 1 billion
KRW per business) for up to 6 months |
* Condition: Over 20 province locals being trained after hiring
* Extent of support: 500,000 KRW per trainee for up to 6 months (Max
1 billion per business) |
| Chungnam |
* Condition: Hired over 20 locals from the province who've lived there
for at least 6 months
* Extent of support: Between 100,000-1 million KRW a month per every
additional regular employee hired after the 20th (Max. 3 billion KRW
per business) |
* Condition: Hired over 20 locals from the province who've lived there
for at least 6 months
* Extent of support: Between 100,000-1 million KRW a month per month
(Max. 3 billion KRW per business) for 6 months |
| Jeonbuk |
* Condition: Over 20 Koreans newly recruited
* Extent of support: 500,000 KRW per every additional regular employee
hired after the 20th (Max. 500 million KRW per business) for 6 months |
* Condition: Training over 20 Koreans for hiring
* Extent of support: 500,000 KRW per every person in training (Max.
500 million KRW per business) for 6 months |
| Jeonnam |
* Condition: Over 20 Koreans newly recruited
* Extent of support: Between 100,000-500,000 KRW per every additional
regular employee hired after the 20th (Max. 200 million KRW per business)
for 6 months |
* Condition: Training over 20 Koreans for hiring
* Extent of support: Between 100,000-500,000 KRW per every person
in training (Max. 200 million KRW per business) for 6 months
|
| Gyoungbuk |
* Condition: Over 20 Koreans newly recruited
* Extent of support: Up to 1 million KRW per every additional regular
employee hired after the 20th (Max. 600 million KRW per business)
for 6 months |
* Condition: Over 20 Koreans newly recruited
* Extent of support: Up to 1 million KRW per every employee in training
(Max. 600 million KRW per business) for 6 months |
| Gyoungnam |
* Condition: Over 20 Koreans newly recruited
* Extent of support: 500,000 KRW per every additional regular employee
hired after the 20th (Max. 200 million KRW per business) |
* Condition: Training over 20 Koreans for hiring
* Extent of support: 100,000-500,000 KRW per every employee in training
(Max. 200 million KRW per business) for 6 months |
| Jeju |
* Condition
-Over 20 people newly recruited
-Only applicable to new recruits made within the first 5 years of
business
* Extent of support
- Up to 1 million KRW per every additional regular employee hired
after the 20th (Max. 200 million KRW per business) a month for 6 months |
* Condition
- Training over 20 people for hiring
-Only applicable to training session being conducted within the first
5 years of business
* Extent of support
- Up to 1 million KRW per every additional regular employee(Max. 200
million KRW per business) for 6 months |
|
|
Cash Grant |
|
City/
Province |
Specifics |
| Seoul |
* Condition:
-Establishment or expansion of factory facilities
(worksite) with foreign investment worth more than USD
10 million
- Establishment or expansion of research
facilities with more than ten full-time researchers
in business support service industry, high-tech industry,
parts and materials industry
* Extent of support: 50%
of foreign investment after negotiation and deliberation
by the Foreign Investment Committee
* Purposee: land
purchase, lease, construction cost, equipment purchasing
cost, infrastructure building cost |
| Ulsan |
* Condition: Meeting requirement as defined by Law for Promotion of
Foreign Investment article 14, paragraph 2
- Cannot not be applied for in conjunction with: location / facilities
/ hiring or training support
* Extent of support: To be decided by the investment enticement committee |
| Gyounggi |
* Condition
- Research facility for business accompanying advanced technology
that's eligible for tax exemption status as defined by Tax limitation
exemption law article 121-2, paragraph 1, title 1
- High tech technology / product development facility as defined by
Industrial advancement law article 5, paragraph 1
- Other facilities that is deemed necessary by the provincial governor
for foreign investment enticement.
* Purpose: Construction, rent, purchase of raw material and tools,
infrastructure installation costs, and training costs.
* Extent of support: Upon review of economical effects such as investment
funds, new jobs and technology transfer by the foreign investment
enticement committee, up to 50% of total budget. |
| Chungbuk |
* Condition: Fulfilling terms outlined in Law for Promotion of Foreign
Investment article 14, paragraph 2
* Purpose: Rent, construction, purchase of land, raw materials, basic
electrical and communication facility, research tools and training
costs |
| Chungnam |
* Condition: Meeting requirements as outlined in Legislation article
14-2, paragraph 1.
* Purpose: Rent, construction, purchase of land, raw materials, basic
electrical and communication facility, research tools and training
costs |
| Jeonbuk |
* Condition
-Over $10 million (US) spent on building and expanding factories for
industrial services and businesses with advanced technology
-Over $10 million (US) spent on building and expanding factories for
producing mechanical parts other basic materials.
- Over $5 million (US) spent on building and expanding research facilities
for industrial support services and businesses accompanying advanced
technology (over 20 researchers hired)
* Purpose: Factory, land and construction costs for building research
facility
- Purchase of raw material and equipment for factory and research
facility
-Basic infrastructure for construction of factory and research facility
(ex. electricity, communication)
- Cost for hiring and training of employees
* Extent of support: Up to 5 billion KRW (decided by the investment
committee) |
| Jeonnam |
* Condition
-Over $10 million (US) spent on building and expanding factories for
industrial services and businesses with advanced technology
-Over $10 million (US) spent on building and expanding factories for
producing mechanical parts other basic materials.
- Over $5 million (US) spent on building and expanding research facilities
for industrial support services and businesses accompanying advanced
technology (over 20 researchers hired)
* Purpose
- Purchase of raw material and equipment for factory and research
facility
-Basic infrastructure for construction of factory and research facility
(ex. electricity, communication)
- Cost for hiring and training of employees
* Extent of support: Determined through investment enticement negotiation
(With Ministry of Commerce, Industry and Energy and investors) |
| Gyoungbuk |
* Condition: Industrial support service firm or business accompanying
advanced technology with over $10 million (US) in foreign investment
or research facility with over $5 million (US)
* Purpose: Rent, construction and purchase of land, infrastructure
and research equipments
* Extent of support : Up to 20% of total amount invested (decided
by the investment committee) |
| Gyoungnam |
* Condition
-Over $10 million (US) spent on building and expanding factories for
industrial services and businesses with advanced technology
-Over $10 million (US) spent on building and expanding factories for
producing mechanical parts other basic materials.
- Over $5 million (US) spent on building and expanding research facilities
for industrial support services and businesses accompanying advanced
technology (over 20 researchers hired)
* Purpose: Rent, construction, purchase of land, infrastructure, and
research equipments, hiring and training costs. |
| Jeju |
* Condition
Investment firm in which net investment in facilities (construction,
purchase of equipment, etc) exceeding 30 billion KRW or maintains
over 50 regular employees.
* Extent of support: Up to 5 billion KRW or 5% of net investment.
(the purchasing cost of land leased to business by the Jeju government
is considered a part of this amount) |
|
|
Financial support |
|
City/
province |
Specifics |
| Gyoungnam |
* Condition
- Business that falls under Gyoungnam-do Investment Enticement Promotional
Fund Management Guideline Star 1.
- Over 5 billion KRW in facility investment, over 100 employees hired
from within local city limit or over 50 hired from within district
boundary
* Loan limit: 50% of cost of land purchased. (provided that it's within
budget)
* Refund: May be deferred for 5 years, then paied in qual installments
for three years (no interest) |
|
Consulting Fee Support |
|
City/
province |
Specifics |
| Busan |
* Condition
- Foreign investment accounting for over 1/3 of total investment,
or foreign investment firm with a foreign majority shareholder.
- Research firm or local branch of an international corporation.
* Extent of support: Up to 30% of consulting costs by a domestic consulting
firm (up to 20 million KRW per firm) |
| Daegu |
* Extent of support: Part of the cost for feasibility study |
| Gwangju |
* Extent of support: Up to 1% of finalized investment amount, or 100
million KRW per firm |
| Gangwon |
* Extent of support: Up to 1% of finalized investment amount, or 100
million KRW per firm (May not exceed 50% of consulting fees) |
| Jeonnam |
* Extent of support: Up to 50% of consulting costs or 200 million
per firm |
|
|
Facilities support |
|
City/
province |
Specifics |
| Incheon |
* Condition: When building or expanding factory facilities costs
over 3 billion KRW
* Extent of support: Up to (Total cost - 3 billion KRW)×2% or 200
million KRW |
| Gwangju |
* Condition: When building or expanding factory facilities costs over
2 billion KRW
* Extent of support: Up to (Total cost - 2 billion KRW)×5% or 200
million KRW
** Call center: 30% of facility/equipment installation fee or 100 million
KRW |
| Daejeon |
* Condition: When building or expanding factory facilities costs over
2 billion KRW for a foreign investment firm
* Extent of support: Up to (Total cost - 2 billion KRW)×5% |
| Ulsan |
* Condition: When building or expanding factory facilities costs over
3 billion KRW
* Extent of support: Up to (Total cost - 3 billion KRW)×2% or 200
million KRW |
| Gangwon |
* Condition: When building or expanding factory facilities costs over
3 billion KRW
* Extent of support: Up to (Total cost - 3 billion KRW)×2% or 200
million KRW |
| Chungnam |
* Condition: When building or expanding factory facilities costs over
5 billion KRW
* Extent of support: Up to (Total cost - 5 billion KRW)×2% or 200
million KRW |
| Jeonnam |
* Condition: When building or expanding factory facilities costs over
2 billion KRW
* Extent of support: Up to (Total cost - 2 billion KRW)×2% or 200
million KRW |
| Gyoungnam |
* Condition: When building or expanding factory facilities costs over
3 billion KRW
* Extent of support: Up to (Total cost - 3 billion KRW)×2% or 200
million KRW |
| Jeju |
* Condition: Basic infrastructure such as road, water, sewage, communications,
electric supplies.
* Extent of support: Supported within budget limits |
|
|
Support for foreign companies already in Korea |
|
City/
province |
Specifics |
| Daegu |
- (Cost of transferring either the HQ or factory - 100 million KRW)×3%
or 200 million KRW per firm |
| Gwangju |
- Transferring factory: Up to 2% of total transfer costs or 200 million
KRW per firm. (Total cost of transfer must exceed 1 billion KRW to
be eligible)
- Transferring HQ: 300,000 KRW × (Number of employees in HQ - 20).
Up to 200 million KRW |
|
|
Special support |
|
City/
Province |
Specifics |
| Daejeon |
*Condition: Location support, hiring cost support, training support,
facilities support for large scale foreign investment firm that has
a large effect on local economy ($30 million on manufacturing, $20
million on tourism, $10 million on distribution and 5 million on R&D)
*Extent of support: Up to 50% of net foreign investment |
|
|
Living Condition Improvement support |
|
| City/ province |
International school (newly constructed or expansion)
business/managing costs |
Foreigner residential complex
(Foreigner-exclusive town /service
support facility) |
Housing support |
| Seoul |
Loan or service charge:
50-100%, depending on the number of the students |
- Partial reimbursement of development costs for businesses constructing
basic infrastructure (roads, electric/communication/water/sewage facilities,
etc)
- partial reimbursement of expenses to those businesses constructing
/ managing foreign investment environment improvement facilitie |
|
| Busan |
Up to 50% of total cost |
|
|
| Daegu |
Support for facilities and operation costs will be made according
to budget limits |
|
|
| Incheon |
Up to 50% of business
(purchasing land and , construction) and management costs |
-Up to 20% of business costs (purchasing land/buildings and construction) |
|
| Gwangju |
Up to 50% of total cost |
Up to 20% of cost of land purchase |
|
| Daejeon |
*Condition : Construction or expansion of international
(foreigner-oriented) schools
Building a foreigner-exclusive living complex
Building a foreigner-exclusive service support facilities such as
medical / pharmaceutical facilities
Other facilities or businesses that may improve foreigner living standards
*Extent of support : Partial support (within budget limits) for business
or maintenance expenses |
| Ulsan |
Up to 50% of total costs or 200 million KRW |
- Up to 20% of cost of land purchase or 200 million KRW
- Up to 20% of total businesses expenses or 200 million KRW (if purchasing
a building already in use, then up¡¡to 20% of purchasing cost or 100
million KRW) for service support facilities within foreigner residential
complex |
|
| Chungnam |
Up to 50% of total costs or 200 million KRW |
- Up to 20% of cost of land purchase or 200 million KRW
- Up to 20% of total businesses expenses or 200 million KRW (if purchasing
a building already in use, then up¡¡to 20% of purchasing cost or 100
million KRW) for service support facilities within foreigner residential
complex |
|
| Jeonbok |
Support within budget limits
(decided by the investment committee) |
Support within budget limits
(decided by the investment committee) |
|
| Jeonnam |
-Up to 25% of total business expenses (including lotting and equipment
costs) when building international school or remodelling or repairing
public facility into a school
- 200 million KRW for 3 years |
- Up to 35% of cost of land purchase for foreigner-exclusive town
/ service support facilities |
25% of construction costs when building living quarters for workers
of foreign invest firm |
| Gyoungnam |
Up to 50% of total expenses |
Up to 20% of business expenses or 200 million KRW for facilities
that matches the guideline outlined in Article 2 paragraph 5, title
2 or 5 |
|
| Jeju |
* Facility expenses (including lotting coses) within
budget limits for business that applies to any one of the followin:
1. Construction or expansion of international school (including
housing for teachers)
2. Constructing of foreigner housing
3. Construction or expansion of foreigner-exclusive medical facilities
or service facilities such as nursery
* Housing for foreigners who apply to any one of the following:
1. Employed in foreign investment firm
2. Employed (educators and others) in foreign education facility
/ colleges
3. Employed in medical facility or foreigner-exclusive pharmaceutical
facility |
|
|
Reward policy for decorated citizens |
|
City/
province |
Specifics |
| Seoul |
* Condition: Individuals, organizations, businesses or social workers
of the city/province who are recognized for their contribution to
enticement of foreign investment
* Amount: Up to 100 million KRW per foreign investment enticement
business - as long as it stays within budget
* Details
| Foreign investment (In US $) |
Reward (%) |
| Under $10 million |
0.1% of net foreign investment |
| more than $10 million and less than $50 million |
(Foreign investment - $10 million) × 0.05% + $10,000 |
| more than 50 million and less than $100 million |
Foreign investment - $50 million) × 0.03% + $30,000 |
| more than $100 million |
(Foreign investment - $100 million) × 0.02% + $45,000 |
|
| Incheon |
* Condition: Individuals or social workers of Incheon city who are
bound by service agreement
* Amount : Up to 300 million KRW per year (Civilian: 200 million,
social workers: 100 million |
| Ulsan |
* Condition: Individuals, businesses, organizations and social workers
(of the city, province or district) who are under the investment affairs
agreement
* Amount : Up to 100 million KRW. Specific amount decided by the Investment
enticement committee
Yearly foreign investment
(In US $) |
Reward |
| $5 million or more and less than $10 million |
0.04% of net foreign investment |
| $10 million or more and less than $50 million |
(Foreign investment - $10 million) × 0.03% + $4,000 |
| $50 million or more and less than $100 million |
(Foreign investment - $50 million) × 0.02% + $16,000 |
| $100 million or more |
(Foreign investment - $100 million) × 0.01% + $26,000 |
|
| Daejeon |
* Condition: Individuals, organizations, businesses or social workers
who are recognized for their contribution to enticement of foreign
investment
* Amount: Awarded, within budget limits and related regulations, in
accordance with their actual results upon review by the Daejeon Foreign
Investment Enticement Committee.
Social workers are promoted or otherwise rewarded in accordance with
the related regulations
| Subject |
Foreign Investment
(In US $) |
Standard |
Details |
Note |
| Daejeon foreign investment enticement
advisor, Individual, businesss, Organization |
less than $10 million |
0.05% |
|
within the payment standard established through
the deliberation of Dejeon Foreign Investment Promotion Council |
$10 million or more and less than
$50 million |
0.04% |
(Foreign investment - $10 million) × 0.04% + $5,000 |
$50 million
or more and less than-
$100 million |
0.03% |
(Foreign investment - $50 million) × 0.03% + $21,000 |
| $100 million or more |
0.02% |
(Foreign investment - $100 million) × 0.02% + $36,000 |
| social workers | $100 million or more |
0.005% |
|
|
| Gwangju |
| Standards (civilians) |
Foreign Investment
(In US $) |
Awarded amount |
| Up to $10 million |
0.06% of net foreign investment |
| more than $10 million, up to $50 million |
0.05% of net foreign investment |
| more than $50 million, up to $100 million |
0.04% of net foreign investment |
| more than $100 million |
0.03% of net foreign investment |
|
| Gyounggi |
* Condition: Individuals, businesses, organizations or social workers
who are recognized for their contribution to enticement of foreign
investment
* Amount : Up to 300 million KRW for Individuals, businesses, organizations,
and up to 200 million KRW for social workers.
Advisory fees: 5 million KRW per project |
| Gangwon |
* Condition: Social worker of Gangwon-do or individuals who are bound
by service agreement
* Amount: Decided by the Foreign Investment Enticement Committee. |
| Chungnam |
* Condition: Individuals, organizations, social workers, or professionals
who are recognized for their contribution to enticement of foreign
investment
* Amount: (Civilian, organization and professionals)
| Foreign Investment (In US $) |
Awarded amount |
| (1) less than $10 million |
0.1% of net foreign investment |
| (2) $10 million or more and less than $50 million |
(1)+(Foreign investment - $10 million) × 0.05% |
| (3) $50 million or more and less than $100 million |
(1)+(2)+(Foreign investment - $50 million) × 0.01% |
| (4) more than 100 million |
(1)+(2)+(3)+(Foreign investment - $100 million) × 0.005% |
|
| Chungnam |
* Condition: Individuals, organizations, social workers, or professionals
who are recognized for their contribution to enticement of foreign
investment
* Amount: (Civilian, organization and professionals)
| Foreign Investment (In US $) |
Condition |
Awarded
amount |
| $5 million or more and less than $10 million |
0.06% of net foreign investment |
Up to $6,000 |
| $10 million ot more and less than $50 million |
$6,000+(Foreign investment-$10 million)×0.05% |
Up to $25,500 |
| $50 million or more and less than $100 million |
$25,500+(Foreign investment-$50 million)×0.04% |
Up to $45,500 |
| more than $100 million |
$45,500+(Foreign investment-$100 million)×0.03% |
Up to $170,940 |
* In case of social workers, a fixed reward of 25%
of net incentive will be given |
| Jeonbuk |
* Condition: Individuals, businesses, organizations and social workers
who are bound by service agreement with the province. (including corporations)
Foreign Investment
(In US $) |
Condition |
Awarded
amount |
| $5 million or more and less than $30 million |
0.1% of net foreign investment = (1) |
Up to 100 million KRW |
| more than $30 million |
(1)+(Foreign investment-$30 million)×0.05% |
|
| Jeonnam |
| |
Condition |
| Target |
Civilians, social workers, organizations and businesses |
| Amount |
Foreign Investment
(In US $) |
Ratio |
Awarded
amount |
| less than $10 million |
0.1% |
Up to $10,000 |
| $10 million or more and less than $50 million |
0.08% |
Up to $40,000 |
| $50 million or more and less than $100 million |
0.06% |
Up to $60,000 |
| more than $100 million |
0.04% |
Up to $166,000 |
|
| Gyoungbuk |
* Condition: Korean and foreign civilians who are recognized for their
contribution to promotion of foreign investment
Foreign Investment
(In US $) |
Ratio (%) |
Awarded amount (Up to 500 million KRW) |
| up to $10 million |
0.30 % |
$10 million × 0.3% |
| $10 million - $50 million |
0.25 % |
$30,000×($50 million-$10 million)×0.25% |
| $50 million - $100 million |
0.20 % |
$130,000×($100 million-$50 million)×0.2% |
| more than $100 million |
0.15 % |
$230,000×(net foreign investment-$100 million)×0.15% |
|
| Jeju |
* Condition: Civilians, organizations and social workers who are recognized
for their contribution to enticement of over 10 million dollars of
foreign investment, and have been approved by the Jeju Local Government
Enticement Committee.
* Amount : 0.1% of net foreign investment up to 500 million KRW for
civilian, and up to 100 million KRW for social workers |
|
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Last Updated on 02 25 2010
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