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Busan city to amend the draft enforcement ordinance of the incentive policies

According to Yonhap News,

The city of Busan announced the amendment of investment incentive policies aimed to encourage investors into the local market on Jan 18. The city authorities have been in the course of modifying provisions stipulated in the draft enforcement ordinance of the incentive policies since last May in order to promote expansion of existing business and bring vigor from a grim reality amid COVID-19 induced recession.

By combining separately mandated city ordinance, the enforcement regulations, instructions into one, single legislative guidance, Busan city amended the legal clauses.

The update newly prescribed entails provisions of financial aids, specifically, covering part of construction costs up to KRW 30 billion for those who make large-scale investments, equivalent in value to upward KRW 200 billion, providing up to KRW 5 billion for those reshoring business back to Korea, KRW 4 billion in the forms of land purchase/ construction costs, KRW 200 million for leases and KRW 2.5 million worth of employment subsidies for each full-time worker etc. To incentives foreign investors, the city makes up for nearly 30%, 50% of land purchase costs and rents respectively along with KRW 500,000 worth of employment / HR training subsidies to each employee once hired. Investors are also provided with a package of financial –administrative supports; KRW 20 million for business consulting fees, tax / tariff breaks, location etc. To break the language barriers for foreign investors, the authorities send linguists if necessary.

To facilitate better, productive investment environment, Busan city is set to develop the city’s own digital investment support system within this year.

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Source: Yonhap News (Jan 18, 2021)

** This article was translated from Korean.