Shortcut to Body Shortcut to main menu

Enforcement Regulations of the Chungnam Ordinance

  • 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 term used in this Regulation shall be defined as follows
  1. 1.The term "industrial site subsidy" refers to the subsidy to be (partly) paid in the form of actual land purchasing costs or rent reduction in such cases where the authorities provide any foreign invested company with the amount equivalent to the gap between the actual rent on lease and the reduction for the sake of undercutting market values in case when an enterprise in manufacturing, high-tech business or industry support services transfers, invests or scales up its head office, research center, factories or (tourist)agency thereof into local foreign investment zones (FIZ) or any given places authorized by the governor of South Chungcheong Province (hereinafter referred to as the "Governor")so as to attract foreign direct investment in the provincial district.
  2. 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. 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. 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. 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. 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. 7. “Research institutes” shall refer to corporate research institutes as stipulated in the provisions of Article 7 of the Technology Development Promotion Act.
  8. 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)
  1. ① The Chairman of the Investment Promotion Committee (hereinafter referred to as the "Committee") shall represent the Committee and govern general affairs of the Committee.
  2. ② The 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.
  3. ③ The 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.
  4. ④ The 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)
  1. ① The 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)
  2. ② The chairman of the Working-level Committee shall serve as the Head of Economic and Trade office, and members of the committee shall be appointed or commissioned by the Governor or in consideration of gender diversification amongst the following candidates therein. <Amended on February 28, 2017, December 30, 2019>
    1. 1. Public officials related to investment promotion
    2. 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. 3. Anyone with abundant experience and knowledge on
  3. ③ A 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.
  4. ④ The 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.
  5. ⑤ The 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. ⑥ The Working-level Committee shall deliberate on the following issues. (Amended on July 30, 2008)
    1. 1. Promotion and support for domestic and foreign investment (Amended on August 30, 2013)
    2. 2. Review and adjustment of the agenda to be deliberated by the Committee
    3. 3. Resolution of grievances filed by domestic investors, foreign investors, or investment enterprises (Amended on August 30, 2013)
    4. 4. Civil affairs pursuant to the provisions of Article 17 of the Foreign Investment Promotion Act
    5. 5. Other issues proposed by the Committee
Article 5 (Public Official for Fund Management)
① Pursuant to Article 8 of Ordinance, a fund managing officer shall be appointed for the purpose of efficient management of the Investment Promotion Fund of South Chungcheong Province and shall serve as the head of economy and trade bureau.
<Amended on February 28, 2017, December 30, 2019>
Article 6 (Subsidies for Industrial Sites)
  1. ① The 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. 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)
  3. ③ Subsidies 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)
  4. ④ Anyone 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 7 (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 8 (Employment Subsidy)
  1. ① The 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)
  2. ② Subsidy 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)
  3. ③ Anyone 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 9 (Education and Training Subsidy)
  1. 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)
  2. ② Subsidy 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. 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. 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. 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. 3. Any other institutions or organizations recognized by the Governor
  4. ④ The 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)
  5. ⑤ Anyone 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.
Article 10 (Subsidies for Factory Facilities)
  1. ① The applications of government subsidies for factory facilities pursuant to Article 14 of Ordinance shall be specified as follows
    1. 1. Construction costs to newly establish or expand factory facilities, research centers or offices
    2. 2. Costs to purchase commodities or research materials for business purpose or research work
    3. 3. Costs to develop utility infrastructure which includes electricity or communications
    4. 4. Facilities deemed necessary by the Governor
  2. ② The governor may provide subsidies for facilities to an enterprise that newly establishes or expands factory facilities which fall into any category prescribed in paragraph 1 hereof within five years from the initial date of the investment notification, in which case the Governor may subsidize up to 50 percent of the total costs for the project cited herein per each company.
  3. ③ The Governor may provide subsidies, in which case the cash grants referred herein shall be determined after a performance assessment to measure the output of the relevant investment project as stated in the investment plan and careful deliberations by the Foreign Investment Committee.
  4. ④ Anyone who wishes to receive subsidies prescribed herein shall submit to the Governor an application in the form of Annex no. 4.
  5. ⑤ The Governor may provide subsidies hereof in the form of installments within budget limit in 10 years from the date on which the aid scheme is confirmed.
  6. ⑥ In accordance with the terms stated in paragraph 5, the subsidies may be paid in installments, in which cases the Governor may adjust the amount or time for the payment to be granted in consideration of any changes in the investment plan or the assessment results in connection with the investment project herein.
Article 11 (Support for Improvement of Living Conditions for Foreign Investors)
  1. 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. 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. 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. 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. 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 12 (Aftercare)
  1. ① The Governor may review the following issues for effective management of subsidy recipients
    1. 1. Current status of the project
    2. 2. Whether the subsidy has been spent adequately
    3. 3. Whether it constitutes justification for cancellation or return of the subsidy
    4. 4. Any other issues deemed necessary for the purpose of achieving the objectives of the project
  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 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. 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 13 (Settlement of Subsidies)
  1. ① Recipients of subsidies specified herein shall submit a statement of settlement on business status in the form of Annex no. 6 to the Governor by the end of January of the following year.
  2. ②The Governor shall examine the settlement of subsidies upon submission of the settlement statement pursuant to Paragraph 1 hereof.
Article 14 (Cancellation or Refund of Subsidies)
  1. 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.
  2. ② When a recipient of subsidies granted under the provisions specified by Article 8 and 9 dismisses employees for whom such subsidies have been granted within three years, the Governor shall order a full (or partial) reimbursement of such subsidies, in proportion to the employment period.
  3. ③ When the Governor discovers, upon examining the settlements of subsidies, positive balance on which the budget to cover any given outlays to be subsidized is left in surplus, the Governor shall have the subsidies reimbursed by the amount equivalent to the balance between used and unused funds.
  4. ④ Provided that an enterprise which has been issued a corrective order under the provisions stated in Article 12-2, does not fulfill the obligations therein, the Governor shall have the subsidies reimbursed in proportion to the amount illegitimately or inappropriately used and shall cease providing additional supports.
  5. ⑤ The Governor may order a refund of subsidies granted to the recipient who signed a contract of sale or lease on property and failed to break ground within 18 months from the date of contract.
Article 15 (Payment of Bonuses)
  1. 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. 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. ③ If anyone who has got credit for investment attraction under provisions prescribed in paragraph 1 and 2 wishes to receive rewards, the public official hereof shall submit an application in the form of Annex no. 7 within six month from the day when the investment reported is verified.
  4. 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. In recognition of the contribution, the Committee may suggest fast track employee promotion within the HR department.
Article 16 (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. ① (Date of Enforcement)This Regulation shall be effective from the date of its promulgation.(The rest is omitted.)
  2. ② (Amendment of another regulation)1.-2. (Omitted)
    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:
  3. 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 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. ①(Date of Enforcement) This Regulation shall be effective from the date of its promulgation.
  2. 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. 1. "Domestic and foreign" under Article 2.1, Article 4.6.1 and 3 shall become "foreign".
  2. 2. Article 11, 12, 12-2, 12-3 and 12-4 shall be deleted.
  3. 3. Article 7 and 8 under Article 15.2 shall become Article 8 and 11.