According to Yonhap News,

(SEOUL=Yonhap News) As a follow-up measure of the foreign investment promotion plan initially devised during a meeting between Korean President Park Geun-hye and foreign-invested companies in Korea early this year, The Ministry of Trade, Industry & Energy (MOTIE) announced June 16 that it pre-announced the revised Foreign Investment Promotion Act. The revised Act aims to attract quality human resources from overseas and create jobs by giving incentives to global corporations that relocate their headquarters and research & development (R&D) centers to Korea.

According to the Act, an income tax rate of 17 percent will be applied to foreign employees, and technical experts are subject to paying only 50 percent of the income tax. Corporate investment visa holders will be able to extend their stay in Korea.

To qualify, corporations must have revenue of KRW 3 trillion or be certified as global corporations by the Foreign Investment Committee. They should also act as the managing headquarters of two or more corporate bodies and have a foreign investment share of 50% or more.

As for R&D centers, they must have five or more researchers with a master’s degree or with a bachelor’s degree and 3 or more years of research experience. Facility investment must exceed KRW 100 million, with a foreign investment share of 30% or more.

Last April, MOTIE dispatched a team to the United States to invite global corporations to set up their headquarters in Korea. The ministry and KOTRA will dispatch other teams to Germany and France this month to attract investment by global corporations in the aviation and new materials industries.

prayerahn@yna.co.kr

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