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Cash Grants

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Incentives

인센티브 표로 구분,단지형 외국인투자지역,개별형 외국인투자지역,서비스형 외국인투자지역 정보 제공
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:
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 Requirements
  • Business of New Growth Engine Technologies
    (USD 2 million or more )
  • Manufacturing :USD 10 million or more
  • Logistics : USD 5 million or more
  • Manufacturing : USD 30 million or more
  • Logistics : USD 10 million or more
  • Tourism : USD 20 million or more
  • R&D : USD 2 million or more & Employ
    10 or more researchers
N/A
Acquisition Tax / Property Tax 100% of the tax will be exempted for 15 years (the rate may vary depending on foreign investment ratio)
Customs Duties 100% of the duties will be exempted for 5 years from the day of reporting capital goods investment
Corporate Tax
  • High-tech companies, research institute companies occupying R&D special zones
    (registered until Dec. 31, 2025)
  • 100% of the corporate tax will be exempted for 3 years, and then 50% for next 2 years
N/A
(But, reduction might be available if designated as an individual-type foreign investment zone within R&D special district)

Cash Grants

현금지원 표로 대전시 현금지원, KOTRA 현금지원 등 제공
Daejeon
Cash Grants
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
  • 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
  • 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)
KOTRA
Cash Grants
Eligibility FDI with foreign investment ratio of 30% or more, with the following cases
  • Construction or extension of factory facilities for the management of projects involving technologies of new growth engine industries
  • Factory or research facilities for projects involving high-tech, advanced products
  • Construction or extension of factory facilities manufacturing materials or parts that fall into the select materials, parts and equipment industries
  • Job creation in a scale exceeding the number of new full-time employees for industries eligible for cash grant
  • 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)
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 construction of factory or research facilities
  • Employment grants and training grants
Cash Grant Process Process Contents Entity
Application for Cash Grant
  • Submit cash grant application form and investment plan
  • Designate PM and submit PM's opinion
* Contact about cash grant: KOTRA Foreign Investment Cash Grant Center(02-3460-7852, 7834)
Deliberation
  • Evaluate technological, commercial, and financial capacity, etc.
Form a deliberation committee (MOTIE, Local governments, KOTRA) and conduct evaluation
Set the upper limit
  • Set the ceiling in consideration of the possibilities of investing in countries other than Korea, job creation effect, quality of employment, suitability of business site, impact on local and national economy
Hold the ceiling decision committee
Write proposition
  • Write the proposition and present it to the Foreign Investment Committee
Discussion between MOTEI, MOEF, and local government
Deliberation·Approval
  • Decision on cash grant
Foreign Investment Committee
Contract signing
  • Provide cash grant after signing a contract (lump sum payment for one year or less/10 installment payment for 5 years or less)
MOTIE, Local Government, Applicant
Follow-up Management
  • Inspection on investment implementation and the execution
  • Review the implementation of cash grant details
MOTIE, Local Government, KOTRA
* Prohibited from applying for both Daejeon's cash grant and KOTRA's cash grant
※ Pre-check eligibility before application
- Check if companies are involved in new growth engine industries: MOEF
- Certification of companies involved in advanced technologies and products: MOTIE