Shortcut to Body Shortcut to main menu

Enforcement Regulations of the Gangwon Ordinance

  • Home
  • Investment Guide
  • Enforcement Regulations of the Gangwon Ordinance
Enforcement Regulation of Gangwon Ordinance on Foreign Investment Promotion Department:Investment Promotion Division of Global Investment & Trade Bureau
Regulation No. 2616 Enacted on November 16, 2002
Regulation No. 2748 Revised on September 29, 2006 (Ordinance on General Revision including the Title and Word-Spacing)
Regulation No. 2787 Revised on June 13, 2008 (Ordinance on General Revision including the Title and Word-Spacing)
Regulation No. 2836 Revised on September 25, 2009
Regulation No. 2935 Revised on October 4, 2013 (Ordinance on General Revision in Accordance with Revision of Upper Laws and Regulations of Gangwon-do
Regulation No. 2836 Revised on September 25, 2009 (Ordinance on General Revision including Collection Form of Resident Registration Number)
Regulation No. 2998 Revised on July 10, 2015
Article 1 (Purpose)
The purpose of this Regulation is to stipulate issues necessary to enforce the Gangwon Ordinance on Foreign Investment Promotion (hereinafter referred to as the "Ordinance"). <Amended on October 4, 2013>
Article 2 (Definition)
The terms used in this Ordinance shall be defined as follows <Amended on October 4, 2013>:
  1. 1. "Subsidies for Industrial Sites" shall refer to the subsidies to fund part of the land purchasing cost or finance the difference between the actual rent and discounted amount when building or expanding factories in manufacturing industry, high-tech industry, industry support services businesses or tour sites and facilities within foreign investment zones or areas where the Governor recognizes the need for foreign investment. <Amended on October 4, 2013>
  2. 2. "Employment Subsidy" shall refer to the subsidies that will be provided to enterprise which establishes or expands factory facilities (including sites in tourism business) and newly employs full-time workers. <Amended on October 4, 2013>
  3. 3. “Education and Training Subsidy" shall refer to the subsidies offered to the enterprise that establishes or expands factory facilities (including sites in tourism business) and educates or trains full-time workers for the purpose of preparing a workforce appropriate for business activities, in compensation for part of such expenses. <Amended on October 4, 2013>
  4. 4. "Facilities Subsidies" shall refer to the subsidies for part of the amount spent on the establishment or expansion of factory facilities (including sites in tourism business). <Amended on October 4, 2013>
  5. 5. "Factory Facilities" shall refer to the buildings (including any auxiliary facilities), structures, machinery and equipment necessary to produce, process, or maintain goods in the factory premises. <Amended on October 4, 2013>
  6. 6. "Consulting Fees" shall refer to the expenses on business feasibility analysis and other kinds of consulting services to promote foreign investment. <Amended on October 4, 2013>
  7. 7. "The number of full-time employees" shall refer to the average number of employees during the most recent three months, who provide the relevant factory or worksite with labor, as listed in the reports on the status of earned income tax withholding submitted to the pertinent tax office in accordance with Article 185.1. of the Enforcement Decree of the Income Tax Act. <Amended on September 25, 2009, October 4, 2013>
Article 3 (Foreign Investment Promotion Advisor)
  1. ① The foreign investment promotion advisor under the provisions of Article 5 of the Ordinance (hereinafter referred to as the "Advisor") shall be appointed by the Governor among any of the following candidates with expertise and experience: <Amended on September 25, 2009, October 4, 2013>
    1. 1. Experts from foreign and domestic investment agencies
    2. 2. Officials or professors of foreign investment promotion agencies
    3. 3. Others who the Governor deems necessary for foreign investment promotion activities <Amended on September 25, 2009>
  2. ② The Advisors shall provide advice to the Governor on issues related to foreign investment promotion and solicit ideas and provide information on potential investors and investment promotion activities.
  3. ③ The range of allowances payable to the Advisor prescribed in the Article 5.2 of the Ordinance shall be as follows: <Amended on September 25, 2009>
    1. Basic expenditure for consulting and data-collection activities, and other expenses required for investment promotion activities
  4. ④ The term of Advisors shall be one year and may be extended.
  5. ⑤ The Governor may discharge the Advisor from the duty when he or she wishes to be discharged, or the person is unable to fulfill the duty for illness or personal reasons, or when the person is deemed unqualified as an advisor. <Amended on September 25, 2009>
Article 4 (Subsidies for Industrial Sites)
  1. ① The Governor shall not provide subsidies for rent under the provisions of Article 8.2 of the Ordinance for over ten years from the date of the initial payment. <Amended on September 25, 2009, October 4, 2013>
  2. ② The subsidy shall not exceed the amount allotted for factory site area based upon the standard factory site ratio by business sector as notified by the Minister of Knowledge Economy in accordance with Article 8 of the Act on Industrial Cluster and Factory Establishment, when provided for the difference between the actual land price and discounted price under the provisions of Article 8.3 of the Ordinance.<Amended on June 13, 2008 and on September 25, 2009, October 4, 2013>
  3. ③ The subsidies mentioned in Paragraph 2 hereof shall not exceed 30 percent of the normal sales price of the land and beneficiaries of subsidies shall run the businesses specified in the business proposal submitted for subsidy application for over 10 years. <Amended on September 25, 2009, October 4, 2013 and July 10, 2015>
  4. Anyone who wishes to receive subsidies mentioned herein shall submit an application to the Governor in the form of Annex within a year from the date of contract for the lease or purchase. <Amended on October 4, 2013>
Article 5 (Employment Subsidies)
  1. ① Any company that hires 20 or more residents who have resided in the province for more than six months shall be eligible for a monthly employment subsidy of up to KRW 1 million pursuant to Article 10 of the Ordinance for up to six months for each extra employee, provided that subsidies by the central government shall be provided regardless of resident areas if the government supports part of employment subsidies. <Amended on September 25, 2009, October 4, 2013>
  2. ② The total sum of subsidies to be paid under the provisions of Paragraph 1 hereof shall not exceed KRW 1 billion per company, and companies shall maintain the workforce for at least 3 years upon receiving the subsidies. <Amended on September 25, 2009>
  3. Anyone who wishes to receive subsidies mentioned herein shall submit an application in the form of Annex 2 to the Governor. <Amended on October 4, 2013>

Article 6 (Education and Training Subsidies)

  1. ① Any company that hires and trains 20 or more Korean nationals shall be eligible for a monthly education and training subsidy of up to KRW 1 million pursuant to Article 10 of the Ordinance for up to six months for each extra employee. <Amended on September 25, 2009, October 4, 2013>
  2. ② The total sum of subsidies to be paid under the provisions of Paragraph 1 hereof shall not exceed KRW 1 billion per company, and companies shall maintain the workforce for at least 3 years upon receiving the subsidies. <Amended on September 25, 2009>
  3. ③ Education and training institutions pursuant to Paragraph 1 hereof shall indicate public vocational training facilities and designated vocational training centers in accordance with Article 2.3 of the Act on Employee Vocational Education Development, and college-level or higher education institutions, or training programs in the invested companies, and other institutions recognized by the Governor. <Amended on September 25, 2009>
  4. ④ ④ Deleted<July 10, 2015>
  5. ⑤ Anyone who wishes to receive subsidies mentioned herein shall submit an application in the form of Annex 3 to the Governor. <Amended on October 4, 2013>
Article 7 (Subsidies for Facilities)
  1. ① The subsidies for facilities in accordance with Article 11 of the Ordinance shall be provided to companies up to KRW 5 billion within 10 percent of the facilities cost that exceed KRW 3 billion if the company newly establishes or expands the plant facilities worth more than KRW 3 billion. <Amended on September 25, 2009, October 4, 2013 and July 10, 2015>
  2. ② Deleted<July 10, 2015>
  3. ③ Anyone who wishes to receive subsidies for consulting services shall submit an application in the form of Annex 5 to the Governor. <Amended on October 4, 2013>
Article 8 (Support for Consulting Services)
  1. ① The Governor may provide subsidies for consulting services under the provisions of Article 12 of the Ordinance for up to KRW 100 million within one percent of the confirmed foreign investment, provided that the subsidies for consulting services shall not exceed 50 percent of actual consulting service fees for the foreign investor or foreign-invested company. <Amended on September 25, 2009, October 4, 2013>
  2. ② Anyone who wishes to receive subsidies for consulting fees shall submit an application in the form of Annex 5 to the Governor within a year from the first date of business operation. <Amended on October 4, 2013>
Article 8-2 (Support for Foreign Investment Environment Improvement Facilities)
Anyone who wishes to receive subsidies for development or management of foreign investment environment improvement facilities prescribed in Article 16.2 of the Ordinance shall submit an application in the form of Annex 6 to the Governor. <Newly Established on September 25, 2009>
Article 9 (Special Support for Enterprises with Large Investment)
Enterprises or research institutes eligible for special support under the provisions of Article 17 of the Ordinance are as follows: <Amended on September 25, 2009>
  1. 1. A foreign investor who invests over USD 100 million
  2. 2. An enterprise with over 300 full-time workers
  3. 3. Foreign investment prescribed in Article 2.1.4.c~Article 2.1.4.d of the Foreign Investment Promotion Act <Newly established on September 25, 2009>
Article 9-2 (Decision of subsidies)<Newly established on July 10, 2015>
  1. ① The Governor shall decide whether to provide subsidies to the applicant of the subsidies in accordance with the Ordinance by reviewing the eligibility and business plan.
  2. ② The amount, payment method and grant decision of all kinds of subsidies shall be decided upon the deliberation by the foreign investment promotion committee of the province.
Article 10 (Post-facto Management of Invested Enterprises)
  1. ① The Governor may review the following issues for post-facto management of enterprises that have received subsidies:
    1. 1. Current status of the business plan
    2. 2. Whether the subsidy has been spent adequately
    3. 3. Whether it constitutes justification for cancellation or return of the subsidy
    4. 4. Other issues deemed necessary to verify that the subsidies are being properly used <Amended on September 25, 2009>
  2. ② The 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 in case it is deemed impossible to attain the purpose of the subsidies. However, in case the enterprise appeals for what it considers an unavoidable reason, the grace period can be extended only once, at the request of the enterprise. <Amended on October 4, 2013>
  3. ③ The Governor shall take necessary measures including the establishment of mortgage, provisional registration or guaranty insurance policy to secure the execution of investment of companies that have benefited from subsidies. However, in the case of establishing the guaranty insurance policy, the insurable value shall be deducted yearly in accordance with the follow-up management period of the company. <Newly established on July 10, 2015>
Article 11 (Cancellation and Refund of Subsidies)
  1. ① The Governor shall demand the beneficiary enterprise to return the subsidies in proportion to the business operation period when the enterprise received subsidies for industrial sites under Article 4 and purchased a site with the subsidies, but later disposed of the site within ten years without a convincing reason. <Amended on September 25, 2009, October 4, 2013>
  2. ② The Governor shall demand the beneficiary enterprise to return the subsidies in proportion to the employment period when the enterprise received the employment subsidies under Articles 5 and 6, but laid off the employees within 3 years without a convincing reason.<Amended on September 25, 2009, October 4, 2013>
  3. ③ The Governor shall force the enterprise to return the subsidies and the amount it has unjustly executed, and suspend further support when the enterprise has failed to act upon the order to make corrections under Article 10. 2 of the Ordinance.
  4. ④ In accordance with Article 7, the Governor shall retrieve the subsidies for facilities within 5 years from the completion date of payment, if the recipient moves to a different city or province. <Newly established on July 10, 2015>
Article 12 (Support of Consulting Fees)
  1. ① The Governor shall demand the beneficiary enterprise to return the subsidies in proportion to the business operation period when the enterprise received subsidies for industrial sites under Article 4 and purchased a site with the subsidies, but later disposed of the site within ten years without a convincing reason. <Amended on September 25, 2009, October 4, 2013>
  2. ② The volume of foreign investment eligible for bonus payment under the provisions of Paragraph 1 hereof shall be determined by the committee on an annual performance basis only after verification of the foreign investment, e.g. after confirmation of payment of investment in kind. <Amended on September 25, 2009>
  3. ③ Anyone who wishes to receive bonuses under the provisions of Paragraphs 1 and 2 hereof shall submit an application in the form of Annex 7 to the Governor and criteria on subsidy provision shall be specified in the annex. <Amended on September 25, 2009>
Article 13 (Application of Other Ordinance)
Other issues deemed necessary for provision of subsidies shall be stipulated in Gangwon Ordinance on Subsidy Management or Enforcement Regulation of Gangwon Ordinance on Subsidy Management. <Amended on September 25, 2009, October 4, 2013>

Supplementary Provisions <Regulation No. 2616 Revised on November 16, 2002>

  1. ① (Date of Enforcement) This Regulation shall be effective from the date of its promulgation.
  2. ② (Abolition regulation) This Regulation may be replaced with the Regulations on Gangwon Foreign Investment Promoter's Office and Foreign Investment Promotion Committee.

Supplementary Provisions <Regulation No. 2748 Revised on September 29, 2006> (Ordinance on General Revision including the Title and Word-Spacing)

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

Supplementary Provisions <Regulation No. 2787 Revised on June 13, 2008> (Ordinance on General Revision including the Title and Word-Spacing)

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

Supplementary Provisions <Regulation No. 2836 Revised on September 25, 2009>

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

Supplementary Provisions <Regulation No. 2935 Revised on October 4, 2013> (Ordinance on General Revision in Accordance with Revision of Upper Laws and Regulations of Gangwon)

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

Supplementary Provisions <Regulation No. 2940 Revised on October 4, 2013> (Ordinance on General Revision including Collection Form of Resident Registration Number)

  1. ① (Date of Enforcement) This Regulation shall be effective from the date of its promulgation.
  2. ② (Interim measures in accordance with revised collection forms) Collection forms that were produced under the previous orinance may be used on condition that the amendments are fully reflected.
Annex/Asterisk
〔Annex No. 1〕Application form for pre-sale (rent) price balance subsidy
Annex/Asterisk
〔Asterisk〕Performance-based payment standard
Annex/Asterisk
〔Annex No. 2〕Employment subsidy application form
Annex/Asterisk
〔Annex No. 3〕Application form for education training subsidy
Annex/Asterisk
〔Annex No. 4〕Application form for facility subsidy
Annex/Asterisk
〔Annex No. 5〕Application form for consulting cost
Annex/Asterisk
[Annex No. 6] Application form for project cost to improve foreign investment environment
Annex/Asterisk
[Annex No. 7] Application form for performance-based payment on foreign investment promotion