Cash Grants | Daejeon

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Cash Grants

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Cash Grants

Incentives

Incentives: Category, Complex-Type Foreign Investment Zone, Individual-Type Foreign Investment Zone, Service-Type Foreign Investment Zone
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)
	Reduction or Exemption of Customs Duties	100% of the duties will be exempted for 5 years from the day of reporting capital goods investment
	Reduction or Exemption of Corporate Tax	High-tech companies, research institute companies occupying R&D special zones (registered until Dec. 31, 2021) 100% of the corporate tax will be exempted for 3 years, and then 50% for 2 years
Funding from Daejeon Metropolitan City Government	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 from Daejeon Metropolitan City Government	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 from Daejeon Metropolitan City Government	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)

Cash Grants

Cash Grants: Category, Content
Category	Content
Beneficiaries	FDI with foreign investment ratio of 30% or more, with the following cases Construction or extension of factory facilities for the operation of projects involving technologies of new growth engine industries Construction or extension of factory facilities manufacturing materials or parts that fall into the select materials, parts and equipment industries Construction or extension of factory facilities in the case of hiring of new employees exceeding full-time employees in the target industries 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)
Ceiling	The ceiling for cash grants is determined by the Ceiling Committee The ceiling for cash grants is the sum of grants from the central and local governments. In case that the government provides the leased land, the ceiling includes the cash grant for rent subject to reduction or exemption during the cash grant contract period Cash grants cannot be funded in parallel with the government’s funding program and the total amount of grants must not exceed the ceiling of cash grants.
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 the construction of factories or research facilities Employment grants and training grants