map
home > Investment Guide > Enforcement Regulations of the Chungnam Ordinance

Chungcheongnam-do Enforcement Regulations on Foreign Investment Promotion

Regulation No. 2804 Enacted on June 10, 2000
Regulation No. 2863 Amended on December 31, 2001(Revision of the Chungcheongnam-do Enforcement Regulation on Establishment and Operation of Integrated Management Fund)
Regulation No. 2893 Amended on November 30, 2002
Regulation No. 2927 Amended on July 20, 2004
Regulation No. 2934 Amended on December 6, 2004
Regulation No. 3038 Amended on July 30, 2008
Regulation No. 3062 Amended on April 30, 2009
Regulation No. 3063 Amended on June 1, 2009 (Revision of the Chungcheongnam-do Enforcement Regulation on Administrative Agency and Personnel Management)
Regulation No. 3112 Amended on January 1, 2011 (Revision of the Chungcheongnam-do Enforcement Regulation on Administrative Agency and Personnel Management)
Regulation No. 3188 Amended on April 1, 2013
Regulation No. 3197 Amended on August 30, 2013 (Enforcement Regulation of the Chungcheongnam-do Ordinance of Investment Promotion of Domestic Companies)

Article 1 (Purpose)
The purpose of this Enforcement Regulation is to set forth the rules and regulations necessary to execute the Chungcheongnam-do Ordinance on Foreign Investment Promotion.(Amended on July 30, 2008)

Article 2 (Definition)
The terms used in this Regulation shall be defined as follows:(Amended on November 30, 2002, December 06, 2004, July 30, 2008 and April 30, 2009)

1. "Industrial site subsidy” shall refer to the subsidy to be paid in compensation for the difference between the actual land purchasing price (or rent) and discounted price (or rent) to an enterprise in manufacturing, hi-tech business or industry support services, which newly installs factory facilities or expands the existing ones within foreign investment zones or such places as the Governor deems necessary for promotion of domestic and foreign investment in the Province. (Amended on August 30, 2013)
2. "Employment subsidy" shall refer to the subsidy to be paid to an enterprise which employs full-time workers for the headquarters, research institutes, or factories that the company moves to the Province, or newly installs or expands in the Province.
3. "Education and Training Subsidy" shall refer to the subsidies paid to an enterprise, which educates and trains full-time workers it has employed for newly installed or expanded factory facilities in order to build workforce adequate for its business activities.
4. "Factory Facilities" shall refer to the buildings (including auxiliary facilities), structures, machinery and equipment necessary to manufacture, process, or repair products in the premises of the factory.
5. "The number of full-time employees" shall indicate the average number of employees during the latest three months, who provide labor for income in factories or worksites, listed in the reports on the status of income tax withholdings submitted to a local tax office in accordance with Article 185.1 of the Enforcement Decree of the Income Tax Act.
6. “Headquarters” shall refer to the worksite located in the premises of the headquarters or the main office stated in the registry of incorporation.
7. “Research institutes” shall refer to corporate research institutes as stipulated in the provisions of Article 7 of the Technology Development Promotion Act.
8. “Investment subsidies” shall refer to the subsidies to cover part of the expenses on construction, equipment purchase, and establishment of infrastructure.

Article 3 (Investment Promotion Committee)
①The Chairman of the Investment Promotion Committee (hereinafter referred to as the "Committee") shall represent the Committee and govern general affairs of the Committee.
②The Chairman shall inform the date, location, and purpose of the meeting through a written notice at least seven days before the meeting, if he or she is to convene a meeting, barring special occasions that require urgency.
③The Chairman may request cooperation from public officials or experts on investment promotion by asking them to speak before the Committee in order to solicit opinions, or asking them to submit a report or provide references related to investment promotion activities.
④The Committee shall deliberate on any matter concerning the management of the Committee that is not prescribed in this Regulation, and the Chairman shall make final decisions after deliberation by the Committee.

Article 4 (Working-level Investment Promotion Committee)
①The Working-level Investment Promotion Committee (hereinafter referred to as the "Working-level Committee") shall be composed of approximately 20 members including a chairman, pursuant to Article 3 Paragraph 7 of the Chungcheongnam-do Ordinance on Foreign Investment Promotion (hereinafter referred to as the "Ordinance"). (Amended on July 30, 2008)
②The Chairman of the Working-level Committee shall serve as the Head of Economic and Trade Office, and other members shall be appointed or commissioned by the Governor among the following candidates. (Amended on July 30, 2008, June 01, 2009 and January 01, 2011)
1. Public officials related to investment promotion
2. Public officials of the Province, City or County governments, who are responsible for civil affairs prescribed in the Annexed Tables no. 1 and 2 of the Foreign Investment Promotion Act
3. Anyone with abundant experience and knowledge on
③A quorum for a meeting of the Working-level Committee shall be the presence of the majority of all members then in office and all resolutions shall be adopted by the affirmative vote of the majority of the members present.
④The Chairman of the Working-level Committee may request cooperation from public officials or experts in investment promotion by asking them to speak before the Working-level Committee in order to solicit opinions, or asking them to submit a report or provide references related to the management of the Working-level Committee.
⑤The Working-level Committee shall appoint an executive secretary for the purpose of its efficient management. The executive secretary shall be responsible for investment promotion.
⑥ The Working-level Committee shall deliberate on the following issues. (Amended on July 30, 2008)
1. Promotion and support for domestic and foreign investment (Amended on August 30, 2013)
2. Review and adjustment of the agenda to be deliberated by the Committee
3. Resolution of grievances filed by domestic investors, foreign investors, or investment enterprises (Amended on August 30, 2013)
4. Civil affairs pursuant to the provisions of Article 17 of the Foreign Investment Promotion Act
5. Other issues proposed by the Committee

Article 5 (Public Official for Fund Management)
① A fund management officer shall be appointed for the purpose of efficient management and utilization of the Investment Promotion Fund of South Chungcheong Province in accordance with Article 8 of the Ordinance and the fund management officer shall be the head of economy and trade bureau. (Amended on December 31, 2001 and July 30, 2008)
②Execution of the fund shall be subject to the Chungcheongnam-do Ordinance on Establishment and Management of Integrated Administration Fund (Amended on July 30, 2008)

Article 6 (Subsidies for Industrial Sites)
①The Governor shall not subsidize the rent to be provided under the provisions of Article 11.2 of the Ordinance ten years after the date of the first payment.
② Subsidy for the land price under the provisions of Article 11 Paragraph 3 of the Ordinance shall not exceed the amount to be appropriated for the factory site in accordance with the standards on factory space ratio by industrial sector notified by Minister of Knowledge Economy under Article 8 of the Act on Industrial Cluster and Factory Establishment. (Amended on July 20, 2004 and July 30, 2008)
③Subsidies prescribed in Paragraph 2 hereof may be provided for up to 50 percent of the land price in accordance with the size of investment made by the foreign-invested company after the land purchase, and beneficiaries of the subsidies shall maintain the business stated in the business proposal submitted to receive subsidies for at least ten years. (Amended on July 20, 2004)
④Anyone who wishes to receive subsidies shall submit to the Governor an application in the form of Annex no.1 within a year from the date the contract for the lease or purchase is signed.

Article 6-2 (Use of Cash Grant)
Cash grant prescribed in Article 10 Paragraph 2 of the Ordinance shall be used for limited purposes including land purchase, lease, employment, education and training, construction, equipment purchase, and establishment of infrastructure in accordance with the Article 20 Paragraph 2 of the Enforcement Decree of the Foreign Investment Promotion Act. (Amended on July 30, 2008)
[Newly established on July 20, 2004]

Article 7 (Employment Subsidy)
①The Governor may provide employment subsidies pursuant to Article 12 of the Ordinance to a foreign-invested company that newly hires over 20 employees who have resided for more than six months within five years after foreign business registration. In this case, monthly subsidy between KRW 100,000 and KRW 1 million shall be provided for each extra employee. If the national government subsidizes part of employment subsidy, the Committee shall deliberate and make decisions on subsidy provision according to the abovementioned standards regardless of where the employees reside. (Amended on July 20, 2004 and July 30, 2008)
②Subsidy pursuant to Paragraph 1 hereof shall not exceed KRW 300 million per company, and beneficiaries of the subsidy shall maintain employment of the subsidized workers for at least three years. (Amended on July 20, 2004)
③Anyone who wishes to receive subsidies mentioned herein shall submit to the Governor an application in the form of Annex no.2 in the following year of the employment. (Amended on July 20, 2004)

Article 8 (Education and Training Subsidy)
① The Governor may provide education and training subsidy under the provisions of Article 13 of the Ordinance to a company that hires and trains over 20 Korean nationals, in which case monthly subsidy of KRW 100,000 to KRW 1 million per capita may be provided for up to six months. (Amended on July 20, 2004 and July 30, 2008)
②Subsidy prescribed in Paragraph 1 hereof shall not exceed KRW 300 million per company, and beneficiaries of the subsidy shall maintain employment of the subsidized workers for at least three years. (Amended on July 20, 2004)
③ Training institutions mentioned in Paragraph 1 hereof shall meet any of the following criteria: (Newly established on July 20, 2004 and July 30, 2008)
1. 「Any public vocational ability development and training institutes established by the national government, provincial government, or public organization in accordance with Article 24 of the Enforcement Decree of the Act on the Development of Occupational Abilities of Workers (including vocational colleges under the Vocational College Act)
2. Vocational ability development and training institutions designated by decrees of the Labor Ministry, educational institutes of college level or higher, on-site training in investor companies
3. Any other institutions or organizations recognized by the Governor
④The scope of support under the provisions of Paragraph 1 hereof shall be taken into deliberation and determined by the Committee. (Amended on July 20, 2004)
⑤Anyone who wishes to receive subsidies mentioned herein shall submit to the Governor an application in the form of Annex no.3 in the following year of education and training. (Amended on July 20, 2004)

Article 9 (Subsidies for Factory Facilities)
① The Governor may provide subsidies for facilities under the provisions of Article 14 of the Ordinance to an enterprise that newly establishes or expands factory facilities whose value exceeds KRW 5 billion, in which case the Governor may subsidize up to KRW 200 million per company for up to 2 percent of the extra construction or expansion cost.
② The scope of support under the provisions of Paragraph 1 hereof shall be determined by the Committee.
③ Anyone who wishes to receive subsidies for facilities shall submit to the Governor an application in the form of Annex no. 4 within a year from the initial date of business in the case of factory establishment and registration, and within a year after the completion of facilities in the case of facility expansion.

Article 10 (Support for Improvement of Living Conditions for Foreign Investors)
① The scope of financial support to improve foreign investors’ living conditions pursuant to Article 15 of the Ordinance shall be specified as follows: (Amended on July 30, 2008)
1. Subsidies for construction cost (including expansion cost) and operation expenses of international schools shall be provided up to KRW 200 million for up to 50 percent of the total cost.
2. Subsidies to build a residential complex for foreign nationals shall be provided up to KRW 200 million for up to 20 percent of the land purchasing cost.
3. Subsidies to purchase land or construct buildings for service and support facilities shall be provided up to KRW 200 million for up to 20 percent of the total cost and subsidies to acquire existing buildings shall be provided up to KRW 100 million for up to 20 percent of the acquisition cost.
② Anyone who wishes to receive subsidies pursuant to Paragraph 1 hereof shall submit to the mayor or head of county an application in form of Annex no. 7, which the mayor or head of county shall in turn submit to the Governor, within a year after the completion of the project. (Amended on July 30, 2008)
[Amended on July 20, 2004]

Article 11
(Deleted on August 30, 2013)

Article 12
(Deleted on August 30, 2013)

Article 12-2
(Deleted on August 30, 2013)

Article 12-3
(Deleted on August 30, 2013)

Article 12-4
(Deleted on August 30, 2013)

Article 13 (Aftercare)
①The Governor may review the following issues for effective management of subsidy recipients.
1. Current status of the project
2. Whether the subsidy has been spent adequately
3. Whether it constitutes justification for cancellation or return of the subsidy
4. Any other issues deemed necessary for the purpose of achieving the objectives of the project
②The Governor may give the enterprise a grace period of six months to make proper amendment or corrections to the business plan or to fulfill the obligation, in case it is found to have spent the subsidies for the use other than those notified or it is deemed impossible to attain the purpose of the subsidies. However, if the enterprise appeals for what it considers an unavoidable reason, the grace period can be extended only once, at the request of the enterprise.
③ The Governor may ask the mayor or county governor to submit the management ledger of beneficiary companies when deemed necessary and have related public officials investigate into the companies. (Newly established on April 30, 2009)

Article 14 (Settlement of Subsidies)
① Recipients of subsidies under the provisions of the Ordinance or Regulations shall submit to the Governor a statement of settlement on the subsidies executed during the year in the form of Annex no. 6 and the status of progress of the project specified in the letter of approval on subsidy provision by the end of January of the following year. (Amended on July 30, 2008)
②The Governor shall examine the settlement of subsidies upon submission of the settlement statement pursuant to Paragraph 1 hereof.

Article 15 (Cancellation or Refund of Subsidies)
①When an enterprise disposes of the land purchased with the subsidies for industrial sites granted under the provisions of Article 6 hereof within ten years from the launch of business or factory operation, the Governor shall have demand refund of the subsidies in proportion to the period of operation or business.
②When a recipient of subsidies granted under the provisions of Articles 7, 8 and 11 dismisses any employees for whom such subsidies have been granted, within three years, the Governor shall demand refund of such subsidies in proportion to the period of their employment.(Amended on August 30, 2013)
③When the Governor finds, upon examining the settlement of subsidies, that the adjusted project cost has been reduced from the original cost, based upon which subsidies were granted, the Governor shall have the subsidies withdrawn by the amount equivalent to the difference.
④In case the enterprise which was ordered by the Governor to make a correction under Article 13.2 has not fulfilled the obligations, the Governor shall have the subsidies withdrawn by the amount executed for purposes other than the original one and shall immediately suspend additional support.
⑤ The Governor may demand full refund of subsidies from the recipient that signed a contract to purchase or lease land or properties, if it fails to break ground within 18 months from the conclusion of the contract. (Newly established on April 30, 2009)

Article 16 (Payment of Bonuses)
① The criteria on bonus payment pursuant to Article 25.1 of the Ordinance shall be as specified in the Annexed Table no. 1.
② Promotion and rewards for a public official who has contributed to investment promotion in accordance with Article 25.2 of the Ordinance shall be prescribed in the Annexed Table no. 2. ③ Anyone who has made significant contribution to investment promotion as prescribed in Paragraphs 1 and 2 hereof and wishes to receive bonus shall submit an application in the form of Annex no. 8 within six months after making the contribution.
④ Whether to pay the bonus and the amount shall be determined by the Committee or Chungcheongnam-do Public Service Evaluation Committee, provided that promotional concerns shall be recommended by the Committee.
(Amended on July 20, 2004)

Article 17 (Application of Other Ordinances)
Other issues with regard to the execution of subsidies that are not provided in this Regulations shall be subject to the Chungcheongnam-do Ordinance on Subsidy Management and the Enforcement Regulations of the Ordinance. (Amended on July 30, 2008)

Addendum(Regulation No. 2804)

This Regulation shall be effective from the date of its promulgation.

Addendum
(Regulation No. 2863 Revision of the Chungcheongnam-do Enforcement Regulation on Establishment and Operation of Integrated Management Fund)

①(Date of Enforcement)This Regulation shall be effective from the date of its promulgation.(The rest is omitted.)
②(Amendment of another regulation)1.-2. (Omitted)
3. The Enforcement Regulation of the Chungcheongnam-do Ordinance of Foreign Investment Promotion shall be amended as the following: The Article 5.1 shall be changed to:
①A fund management officer shall be appointed for the purpose of efficient management and utilization of the Investment Promotion Fund of South Chungcheong Province in accordance with Article 8 of the Ordinance and the fund management officer shall be the Head of Economic and Trade Office.

Addendum (Regulation No. 2893)

This Regulation shall be effective from the date of its promulgation.

Addendum (Regulation No. 2927)

This Regulation shall be effective from the date of its promulgation.

Addendum (Regulation No. 2934)

①(Date of Enforcement) This Regulation shall be effective from the date of its promulgation.
②(Interim Measures) The financial support for the moving expenses in accordance with Article 11 shall be applied to those who have signed the agreement after April 1, 2004.

Addendum (Regulation No. 3038)

This Regulation shall be effective from the date of its promulgation.

Addendum (Regulation No. 3062)

This Regulation shall be effective from the date of its promulgation.

Addendum
(Regulation No. 3063, Revision of the Chungcheongnam-do Enforcement Regulation on Administrative Agency and Personnel Management)

Article 1(Date of Enforcement)
This Regulation shall be effective from the date of its promulgation.

Article 2
(Omitted)

Article 3(Amendment of another regulation)
①-③ (Omitted)
④ The Chungcheongnam-do Enforcement Regulations on Foreign Investment Promotion shall be revised as the following:
The the head of the Investment and Trade Bureau under Article 4.2 shall become the Head of Economic and Trade Office. (The rest is omitted.)

Addendum <Regulation No. 3112, January 1, 2011>
(Revision of the Chungcheongnam-do Enforcement Regulation on Administrative Agency and Personnel Management)

Article 1(Date of Enforcement)
This Regulation shall be effective from the date of its promulgation.

Article 2(Amendment of another regulation)
① - ⑤ (Omitted)
⑥ The Chungcheongnam-do Enforcement Regulations on Foreign Investment Promotion shall be revised as the following:
The the head of the Investment and Trade Bureau under Article 4.2 shall become the Head of Economic and Trade Office.
⑦ - (19) (Omitted)

Addendum <Regulation No. 3188, April 1, 2013>

This Regulation shall be effective from the date of its promulgation.

Addendum <Regulation No. 3197, August 30, 2013>
(Chungcheongnam-do Enforcement Regulations on Domestic Company Investment Promotion)

Article 1(Date of Enforcement)
This Regulation shall be effective from the date of its promulgation.

Article 2(Amendment of another regulation)
The Chungcheongnam-do Enforcement Regulations on Foreign Investment Promotion shall be revised as the following:
1. "Domestic and foreign" under Article 2.1, Article 4.6.1 and 3 shall become "foreign".
2. Article 11, 12, 12-2, 12-3 and 12-4 shall be deleted.
3. Article 7 and 8 under Article 15.2 shall become Article 8 and 11.

INVEST KOREA

13, Heolleung-ro, Seocho-gu, Seoul, Republic of Korea (06792) | E-mail ikonline@kotra.or.kr

Korea Trade-Investment Promotion Agency | Copyright 2006. Invest KOREA. All rights reserved.