DAEJEON < invest Korea

Daejeon City revised the ordinance on "enterprise and investment promotion" to abolish the obstacles in attracting businesses and increase support.

On April 5, Daejeon City revised several aspects of the existing ordinance such as eligibility requirements to receive support, amount of financial suport, responsibilities of beneficiary companies and the amount of performance-based financial benefits available.

Previously, companies were eligible for funding upon a minimum investment of KRW 10 billion. The revised ordinance calls for a minimum investment of just KRW 2 billion. For startups, the number went from KRW 20 billion to KRW 500 million, and KRW 5 billion to KRW 500 million for companies in the culture and knowledge service industry, where there is usually the lowest investment rates.

Companies will be receiving more support than before. Facility investment costs, which create the most jobs, increased from 10% of investments exceeding KRW 1 billion to 14% of the total investment amount.

In addition, the ordinance previously awarded KRW 600,000 in employment subsidies for each employee when a company hired at least 10 new workers in Daejeon. The revised subsidy amount is KRW 1 million.

In order to strengthen the social responsibility of beneficiary companies, employment and business execution obligations have been extended from three years to five years.

Also, performance-based bonuses for companies that attract more than KRW 15 billion in investments increased from KRW 100 million to KRW 500 million for private companies and from KRW 20 million to KRW 100 million for public officers.

"Reflecting on the fact that the development of industrial complexes in Shindong, Dungok, Ansan, Pyeongchon and Daejeon are in full swing, we taken steps to remove the obstacles in attracting companies. We will do our best to attract enterprises, to increase the size of Daejeon's economy."

joemedia@newsis.com

Source Text

Source: Newsis (Apr. 05, 2018)

** This article was translated from Korean.