Shortcut to Body Shortcut to main menu

Gangwon Ordinance on Foreign Investment Promotion

  • Home
  • Investment Guide
  • Gangwon Ordinance on Foreign Investment Promotion
Gangwon State Ordinance on Foreign Investment Promotion Department:Investment Promotion Division of Global Investment & Trade Bureau
Ordinance No. 3054 Amended on March 5, 2005 (Ordinance on the Establishment of an Administrative Agency)
Ordinance No. 3145 Amended on September 29, 2006 (Ordinance on General Revision including the Title and Word-Spacing)
Ordinance No. 3178 Amended on May 4, 2007 (Ordinance on Establishment and Management of Various Committees in Gangwon)
Ordinance No. 3355 Amended on September 25, 2009
Ordinance No. 3432 Amended on October 29, 2010 (Ordinance on the Establishment of an Administrative Agency)
Ordinance No. 3446 Amended on December 31, 2010 (Ordinance on the provincial tax of Gangwon)
Ordinance No. 3564 Amended on July 13, 2012 (Ordinance on the Establishment of an Administrative Agency)
Ordinance No. 3656 Amended on July 26, 2013 (Ordinance on general revision in accordance with revision of upper laws and regulations of Gangwon Province)
Ordinance No. 3865Amended on July 10, 2015

Chapter 1. General Provisions

Article 1 (Purpose)
The purpose of this Ordinance is to promote foreign investment by stipulating the issues prescribed in the Foreign Investment Promotion Act (hereinafter referred to as the "Act") and the Enforcement Regulation of the Act (hereinafter referred to as the "Regulation") and issues with regard to support for foreign investors and foreign-invested enterprises. (Amended on September 25, 2009)
Article 2 (Definition)
Terms used in this Ordinance shall be defined as follows : (Amended on September 25, 2009)
  1. 1. "Foreign investment" shall refer to the type of investment as prescribed in the Article 2.1.4 of the Act. (Amended on September 25, 2009)
  2. 2. "Foreign investment enterprise" shall refer to the enterprise in which a foreign investor invests capital as stipulated in the Article 2.1.6 of the Act (Amended on September 25, 2009)
  3. 3. "Infrastructure" shall be defined in Article 2. 1. of the Act of Private Participation in Infrastructure. (Amended on September 25, 2009)
  4. 4. "Operator of Industrial Complex Development Project" shall refer to an operator defined in Article 16. 1. of the Act on Industrial Site Location and Development. (Amended on September 25)
  5. 5. "Foreign investment environment improvement facility operator" shall refer to a person who operates facilities as prescribed in Article 2.1.7 of the Act.(Amended on September 25)

Chapter 2. Support System for Foreign Investment Promotion

Article 3 (Foreign Investment Promotion Committee)
  1. ① Gangwon State Foreign Investment Promotion Committee (hereinafter referred to as "Committee") shall be organized for effective and systematic foreign investment promotion activities and the Committee shall deliberate on the following (Amended on July 9, 2023)
    1. 1. Issues related to promotion and support for foreign investment
    2. 2. Issues on various support for foreign investment/foreign invested company
    3. 3. Issues on rewards for foreign investment promote on (Amended on September 25, 2009)
    4. 4. Other issues suggested by the Governor for foreign investment promotion (Amended on September 25, 2009)
  2. ② The Committee shall consist of 15 or fewer members including the Chairman. The Chairman shall double as Lieutenant Governor for Political Affairs and the Vice Chairman shall double as foreign investment promoter stipulated in Article 4 of the Ordinance. Members shall be appointed by the Governor among the following candidates (Amended on March 3, 2005, on September 25, 2009, on October 29, 2010, on July 13, 2012 and on July 26, 2013).
    1. 1. A member on the Gangwon State Provincial Council (Amended on November 8, 2019 and on June 9, 2023)
    2. 2. A Gangwon State government official nominated by the Governor (Amended on September 25, 2009 and on June 9, 2023)
    3. 3. An executive of a foreign investment promotion agency, lawyer, certified public accountant, professor with expertise in investment promotion
    4. 4. Others with expertise and experience in foreign investment promotion (Amended on September 25, 2009)
  3. ③ AThe term of the appointee shall be two years and he or shall serve for a second term. A member nominated to fill a vacancy shall hold the post for the remaining time of the predecessor. (Amended on September 25, 2009, July 26, 2013 and July 10, 2015)
  4. ④ A quorum for a meeting of the Committee shall be the presence of a majority of all members and all resolutions shall be adopted by the affirmative vote of a majority of the members present.
  5. ⑤ The Committee shall have an executive secretary to govern the general affairs of the Committee and the executive secretary shall be appointed by the Governor among the Gangwon State government officials. (Amended on September 25, 2009 and on July 26, 2013 and on June 9, 2023)
  6. ⑥ The Governor may pay allowances and expenses within the budget to members of the Committee and to those who attend the meetings in accordance with the provisions of the Gangwon State Ordinance on the Establishment and Management of Various Committees. (Amended on May 4, 2007 and on July 26, 2013 and June 9, 2023)
  7. ⑦ Other pressing matters which arise in relation to the Committee's operation shall be decided upon by the Governor following a resolution by the Committee. (Amended on September 25, 2009)
Article 3-2 (Exclusion and evasion of a member) (Newly established on July 10, 2015)
  1. ① A concerned member regarding the agenda under deliberation shall not exercise his or her power.
  2. ② The Chairman shall exclude the concerned member from the deliberation when the member is difficult to make fair consultations and adjustments for the agenda.
  3. ③ If a member finds out that he or she has an interest in the agenda, he or she shall not participate in the deliberation of the agenda voluntarily.
Article 3-3 (Dismissal of a member) (Newly established on July 10, 2015)
  1. ① The Chairman shall dismiss a member who falls under one of the following reasons and inform the dismissal to other members
    1. 1. When a member himself wants to leave the post
    2. 2. When a member is in a difficult condition to fulfill his or her duty due to sickness that require a long-tern treatment or a long leave longer than six months
    3. 3. When the appointee loses his or her position from the organization or group that recommended him to the committee
    4. 4. When a member who acknowledges his or her interest in the concerned agenda but does not step back from the deliberation
    5. 5. When a member reveals confidential information of the committee or when he or she uses the information of the committee for his or her private interest
    6. 6. Other reasons that the Chairman feels necessary.
  2. ② The Chairman shall exclude the concerned member from the deliberation when the member is difficult to make fair consultations and adjustments for the agenda.
  3. ③ If a member finds out that he or she has an interest in the agenda, he or she shall not participate in the deliberation of the agenda voluntarily.
Article 4 (Foreign Investment Promoter)
  1. ① In order to support foreign investment efficiently by means of expediting the handling of civil affairs relating to foreign investment and also establishing a cooperative system between organizations concerned, a Promoter of Foreign Investment (hereinafter referred to as the “Promoter") shall be appointed.
  2. ② The director of the foreign investment promotion bureau may double as the Promoter or the Promoter may be appointed by the Governor among public officials with expertise and experience in foreign investment promotion. (Amended September 29, 2003, on September 25, 2009 and on July 13, 2012 and on June 9, 2023)
  3. ③ The Promoter shall implement tasks set forth in Article 22 of the Regulation. (Amended on July 26, 2013)
Article 5 (Foreign Investment Promotion Advisors)
  1. ① The governor may appoint an expert in foreign investment promotion as a foreign investment promotion advisor to attract domestic and foreign investment in Gangwon State (hereinafter referred to as the “Advisor") (Amended on June 9, 2023)
  2. ② The Governor may pay allowances to support the Advisor's activities within the budget limit and pay the expenses for consulting services for foreign investment promotion. (Amended on July 26, 2013)

Chapter 3. Foreign Investment Support

Article 6 (Local Tax Breaks)
Exemption or reduction of acquisition tax, registration tax, and local taxes on foreign investment described in Article 9 of the Act shall be subject to the provisions of the Gangwon State Ordinance on Tax Reduction and Exemption. (Amended on September 25, 2009, on December 31, 2010 and on July 26, 2013 and on May 15, 2020 and on June 9, 2023)
Article 7 (Financial Support)
The Governor may provide the same financial support to foreign-invested companies as domestic companies in accordance with the Gangwon State Ordinance on the Establishment and Management of Small and Medium Sized Company Development Fund. (Amended on September 25, 2009 and on July 26, 2013 and on June 9, 2023)
Article 8 (Subsidies for Industrial Sites, etc.)
  1. ① The Governor may purchase lands in an industrial complex or other industrial sites with demand for investment within the budget and lease them to a foreign-invested company in order to facilitate foreign investment, in which case the lease period and rent shall be subject to the provisions of the Gangwon State Ordinance on Public Assets Management. (Amended on September 2009 and on July 26, 2013 and on June 9, 2023)
  2. ② The Governor may support the difference between the actual rent and discounted price, within the budget, when a foreign invested-enterprise seeks lease discount on a land for tourism or other businesses or a site owned by the administrator of an industrial complex development project. (Amended on July 26, 2013)
  3. ③ The Governor may support the difference of the actual land price and discounted price, within the budget, when a foreign-invested enterprise seeks discount on a land for tourism or other businesses or a site owned by the administrator of an industrial complex development project. (Amended on July 26, 2013)
Article 9 (Employment Subsidy)
The Governor may offer employment subsidies pursuant to Article 14.4 of the Act within the budget to promote employment by foreign invested enterprises. (Amended on September 25, 2009 and on July 26, 2013)
Article 10 (Education and Training Subsidy)
In case that foreign invested enterprises educate and/or train Korean nationals to ultimately employ them, the Governor may offer subsidies for employee education and training within the budget. (Amended on July 26, 2013)
Article 11 (Facilities Subsidy)
The Governor may provide subsidies to foreign-invested enterprises that build new factories or expand existing facilities within the budget limit in order to facilitate foreign investment.
Article 12 (Support of Consulting Fees)
If foreign invested enterprises consult with experts to establish or expand factories, the Governor may subsidize consulting services within the budget limit after execution of the construction project is confirmed. (Amended on July 26, 2013)
Article 13 (Eligibility)
  1. ① To be eligible for all kinds of subsidies in accordance with Article 8~16-2, the foreign investemnt ratio of the recipient shall be more than 30 percent or a foreigner shall be the largest shareholder. (Amended on September 25, 2009 and July 10, 2015)
    1. 1. Deleted (July 10, 2015)
    2. 2. Deleted (July 10, 2015)
    3. 3. Deleted (July 10, 2015)
  2. ② If a Korean or a Korean company directly or indirectly owns shares that have voting rights of a foreign company that make foreign investment, the ownership ratio of shares shall not be reckoned as the ratio of foreign investment under Section 1. (Amended on September 25, 2009 and July 10, 2015)
  3. ③ The total sum of financial assistance made to a foreign-invested enterprise shall not exceed the amount of investment made by the foreign-invested enterprise, and various support measures including subsidies shall be provided after the confirmation of foreign investment, e.g. following the signing of a contract to move in or purchase an industrial site. (Amended on July 26, 2013)
Article 14 (Support for Foreign Investment Zone)
  1. ① The Governor may provide various basic facilities to support foreign-invested enterprises to construct access roads, water supply facilities and information and communication facilities, etc., in the foreign investment zone designated in accordance with Article 18.1 of the Act and Article 25.1 of the Ordinance. (Amended on September 25, 2009)
  2. ② The Governor may support part of the living expenses for medical cost, educational cost and residential facilities in Foreign Investment Zones, within the budget limit. (Amended on July 26, 2013)
Article 15 (Special Cases of Lease or Sales of Public Assets)
  1. ① Payment in installments for land purchase by a foreign-invested company in accordance with Article 13.1 of the Act shall be subject to the provisions of the Gangwon State Ordinance on Public Assets Management. (Amended on September 25, 2009 and on July 26, 2013 and on May 15, 2020 and on June 9, 2023)
  2. ②The reduction or exemption rate on the lease of a land site to a foreign-invested company pursuant to Article 13. 1. of the Act shall be subject to the provisions of Gangwon Ordinance on Public Assets Management. (Amended on September 25, 2009 and on July 26, 2013)

Article 16 (Foreign Investment Promotion on Social Overhead Capital Facilities)

  1. ① The Governor may provide administrative or financial support to foreign enterprises that invest in SOC projects in accordance with the Act on Private Participation in Infrastructure for the purpose of guaranteeing profitability, provided that the support does not violate relevant provisions. (Amended on September 25, 2009 and on July 26, 2013)
  2. ② The Governor may provide preferential treatment to an individual who proposes a foreign investment project to build infrastructure within the province in accordance with the Act on Private Participation in Infrastructure. (Amended on September 25, 2009)
Article 16-2 (Support for Foreign Investment Environment Improvement)
The Governor may provide financial assistance for any of the following categories to improve foreign investment environment
  1. 1. Establishment of an international school or expansion of school facilities
  2. 2. Construction of residential complexes for foreign nationals
  3. 3. Establishment of medical institutions, pharmacies, or service facilities for foreign nationals
  4. 4. Other cases deemed necessary by the Governor to improve living conditions of foreign nationals (Newly established on September 25, 2009)

Chapter 4. Supplementary Provisions

Article 17 (Special Support)
The Governor may provide special support to foreign enterprises considered to make significant contribution to the local economic growth or industrial development or non-profit organization devoted to research and development (including organizations currently being established) with the consent of the Provincial Council, above the limit set forth in the Ordinance. (Amended on September 25, 2009)

Article 18 (Subsidy Provision for Foreign Investment Promotion by City and County)

  1. ① The Governor may provide financial support within the budget, for subsidy provision pursuant to Articles 10~14 at the request of the mayor of a city or head of a county based on the performance of foreign investment promotion and financial status of the city or county. (Amended on September 25, 2009)
  2. ② The Governor may have the mayor or the head of a county where the concerned foreign-invested enterprises will be located share the expenses that should be paid by the local autonomous body to provide the subsidies to the foreign-invested enterprises. In this case, the ratio and procedures of expense payment shall be determined by the Governor in consultation with the Mayor or the head of the county. (Amended on July 26, 2013)
  3. ③ The Mayor and/or the county administrator shall appropriate the estimated sum of the expenses to be shared in the budget (Amended on September 25, 2009)

Article 19 (Dispatch of Personnel from Private Institutions)

  1. ① The Governor may request the dispatch of foreign investment experts from private institutions or foreign investment promotion agencies for effective promotion of foreign investment.
  2. ② The Governor may provide the dispatched experts pursuant to Paragraph ① with financial assistance within the budget limit for expenses to conduct investment promotion activities. (Amended on September 25, 2009 and on July 26, 2013)

Article 20 (Aftercare)

The Governor may order subsidized companies and parties concerned to submit documents on cases deemed necessary for investment promotion. The Governor may have related public officials conduct on-site inspections, if necessary. (Amended on July 26, 2013)

Article 21 (Cancellation or Refund of Subsidies)

  1. ① The Governor shall cancel, or demand full or partial refund of subsidies from the recipients under the following circumstances: (Amended on September 25, 2009)
    1. 1. Receiving subsidies via a false means and methods (Amended on September 25, 2009)
    2. 2. Failing to serve the duty assigned to the subsidy beneficiaries
    3. 3. Any other cases considered implausible to achieve the goal of subsidy provision
  2. ② The Governor may force the recipient to return subsidies, which shall be refunded pursuant to Paragraph ①,in accordance with local tax regulations. (Amended on September 25, 2009)

Article 22 (Performance-based Bonuses)

  1. ① The Governor may offer bonuses to anyone deemed to have made a significant contribution to investment promotion within the budget. (Amended on September 25, 2009 and on July 26, 2013)
  2. ② The rewards prescribed in Paragraph ① hereof shall be provided in accordance with the annual performance on foreign investment promotion, and the total sum shall not exceed KRW 100 million each year. (Amended on September 25, 2009 and on July 26, 2013)

Article 23 (Enforcement Regulations)

Any issue deemed necessary for the execution of this Ordinance shall be stipulated in the Enforcement Regulations.

Supplementary Provision (Ordinance No. 2929 Amended on November 16, 2002)

This Ordinance shall be effective from the date of its promulgation.

Supplementary Provision (Ordinance on the Establishment of an Administrative Agency No. 2969 Amended on September 29, 2003)

Ordinance shall be effective from the date of its promulgation.

Supplementary Provision (Ordinance No. 3054 Amended on March 5, 2005)

Article 1 (Date of enforcement)
This Ordinance shall be effective from the date of its promulgation.
Article 2
Omitted

Supplementary Provision (Ordinance on General Revision including Title and Word-Spacing No. 3145 Amended on September 29, 2006)

This Ordinance shall be effective from the date of its promulgation.

Supplementary Provision (Ordinance on Establishment and Management of Various Committees in Gangwon No. 3178 Amended on May 4, 2007)

This Ordinance shall be effective from the date of its promulgation.

Supplementary Provision (Ordinance No. 3355 Amended on September 25, 2009)

This Ordinance shall be effective from the date of its promulgation.

Supplementary Provision(Ordinance on the Establishment of an Administrative Agency No. 3432 Amended on October 29, 2010)

Article 1 (Date of enforcement)
Term of existence of Winter Olympics Promotion Headquarters shall be until July 31, 2011.
Article 2 (Temporary agency)
Term of existence of Winter Olympics Promotion Headquarters shall be until July 31, 2011.
Article 3 (Amendment on other ordinance)
  1. ① ~ ⑩ Omitted
  2. ⑪ Certain part of Gangwon Ordinance on Foreign Investment Promotion shall be amended as below: the term "Vice Governor for Administrative affairs" shall be replaced with "Vice minister for Administrative Affairs or Vice Governor for Economic Affairs" except in Article 3-2.
  3. ⑫ ~ (22) Omitted

Supplementary Provision (Framework Ordinance on Gangwon Municipal Taxes No. 3446 Amended on December 31, 2010)

Article 1 (Date of enforcement)
This Ordinance shall be effective from the date of January 1, 2011.
Article 2 ~ Article 3
Omitted
Article 4 (Amendment on other ordinance)
  1. ① ~ ⑥ Omitted
  2. ⑦ Certain part of Gangwon Ordinance on Foreign Investment Promotion shall be amended as below: the term "Ordinance on reduction and exemption of Gangwon municipal taxes" in Article 6. shall be replaced with "Ordinance on reduction and exemption of Gangwon-do municipal taxes".
  3. ⑧ ~ ⑩ Omitted

Supplementary Provision (Ordinance on the Establishment of Administrative Agencies in Gangwon No. 3564 Amended on July 13, 2012)

Article 1 (Date of enforcement)
This Ordinance shall be effective from the date of July 20, 2012.
Article 2
Omitted
Article 3
Omitted
Article 4 (Amendment on other ordinance)
  1. ①~(66)Omitted
  2. (67)Certain part of Gangwon Ordinance on Foreign Investment Promotion shall be amended as below: In Article 6-2, the term "Vice Governor for Administrative Affairs or Vice Governor for Economic Affairs" shall be replaced with "Vice Governor for Economic Affairs", and "Chief of Gangwon Investment Promotion Agency" as "A chief with relevant responsibilities and duties"
  3. (68)~(89)Omitted

Supplementary Provision (Ordinance on General Revision in Accordance with Revision of Upper Laws and Regulations of Gangwon No. 3656 Amended on July 26, 2013)

This Ordinance shall be effective from the date of its promulgation.

Supplementary Provision (Ordinance No. 3865 Amended on July 10, 2015)

This Ordinance shall be effective from the date of its promulgation.