Cash Grants

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Cash Grants

Incentives

인센티브 표로 구분,단지형 외국인투자지역,개별형 외국인투자지역,서비스형 외국인투자지역 정보 제공
Category		Complex-Type Foreign Investment Zone	Individual-Type Foreign Investment Zone	Service-Type Foreign Investment Zone
Reduction or Exemption of Rent		Rent: 1% of the value of the leased site (Existing rent: 5% of the value of the leased site)	100% of the rent to be exempted	50% or less of base rent can be granted ※ Business project should be implemented within 3 years of the signing of the contract
Tax Reduction or Exemption	Acquisition Tax / Property Tax	100% of the tax will be exempted for 15 years(the rate may vary depending on foreign investment ratio)
	Customs Duties	100% of the duties will be exempted for 5 years from the day of reporting capital goods investment
	Corporate Tax	High-tech companies, research institute companies occupying R&D special zones (registered until Dec. 31, 2025) 100% of the corporate tax will be exempted for 3 years, and then 50% for next 2 years

Cash Grants

현금지원 표로 대전시 현금지원, KOTRA 현금지원 등 제공
Daejeon Cash Grants	Facilities Grant	Requirements: Grants will be funded within the budget in the case of construction or extension of factories or research facilities by foreign-invested companies Contents: Grants will be funded within 5% of the amount exceeding KRW 2 billion for the construction or extension of facilities (up to KRW 500 million for each company)
	Employment Grant	Requirements: Grants will be funded in the case of hiring of over 20 Daejeon residents for 5 years after registration of foreign-invested companies Contents: Up to KRW 500,000 per month will be funded for each employee exceeding 20 (for up to 6 months, up to KRW 200 million for each company)
	Training Grant	Requirements: Grants will be funded in the case of training of over 20 Daejeon residents for 5 years after registration of foreign-invested companies Contents: Up to KRW 500,000 per month will be funded for each employee exceeding 20 (for up to 6 months, up to KRW 200 million for each company)
KOTRA Cash Grants	Eligibility	FDI with foreign investment ratio of 30% or more, with the following cases Construction or extension of factory facilities for the management of projects involving technologies of new growth engine industries Factory or research facilities for projects involving high-tech, advanced products Construction or extension of factory facilities manufacturing materials or parts that fall into the select materials, parts and equipment industries Job creation in a scale exceeding the number of new full-time employees for industries eligible for cash grant Hiring of 5 or more full-time researchers in the fields related to the projects involving technologies of new growth engine industries (researchers with master’s degrees in relevant fields, or those with bachelor’s degrees and at least 3 years of experience in relevant fields) Construction or extension of research facilities for R&D activities Construction or extension of research facilities by nonprofit corporations (Article 2.1.4.3) FDI having bigger impact on the Korean economy compared to the invested amount (approval of the Committee on Foreign Investment required)
	Usage	Foreign-invested companies must use cash grants for the following purposes only Purchasing or renting of land or property for factory or research facilities Construction of factory or research facilities Purchasing of capital goods or equipment for business or research purposes at factories or research facilities Installation of infrastructure required for construction of factory or research facilities Employment grants and training grants
	Cash Grant Process	Process	Contents	Entity
		Application for Cash Grant	Submit cash grant application form and investment plan Designate PM and submit PM's opinion	* Contact about cash grant: KOTRA Foreign Investment Cash Grant Center(02-3460-7852, 7834)
		Deliberation	Evaluate technological, commercial, and financial capacity, etc.	Form a deliberation committee (MOTIE, Local governments, KOTRA) and conduct evaluation
		Set the upper limit	Set the ceiling in consideration of the possibilities of investing in countries other than Korea, job creation effect, quality of employment, suitability of business site, impact on local and national economy	Hold the ceiling decision committee
		Write proposition	Write the proposition and present it to the Foreign Investment Committee	Discussion between MOTEI, MOEF, and local government
		Deliberation·Approval	Decision on cash grant	Foreign Investment Committee
		Contract signing	Provide cash grant after signing a contract (lump sum payment for one year or less/10 installment payment for 5 years or less)	MOTIE, Local Government, Applicant
		Follow-up Management	Inspection on investment implementation and the execution Review the implementation of cash grant details	MOTIE, Local Government, KOTRA

* Prohibited from applying for both Daejeon's cash grant and KOTRA's cash grant
※ Pre-check eligibility before application
- Check if companies are involved in new growth engine industries: MOEF
- Certification of companies involved in advanced technologies and products: MOTIE