According to Yonhap News,

(SEOUL=Yonhap News) The Ministry of Trade, Industry & Energy (MOTIE) announced October 14 a revised decree that includes the standards and procedures for recognizing the regional headquarters and research and development (R&D) centers of global companies.

According to the revised Enforcement Decree of the Foreign Investment Promotion Act by MOTIE, a company will be recognized as a regional headquarters when it has more than 10 employees, the sales of its parent company exceed KRW 3 trillion and foreign investment accounts for more than 50 percent of the total investment.

Under the decree, an R&D center should have more than five researchers, investment of more than KRW 100 million and foreign investment of more than 30 percent.

The above-mentioned facilities will benefit from rental fee reduction when renting state-owned land and the rate of reduction will be decided depending on the amount of investment and the scope of employment.

The decree also includes regulation updates. Companies will no longer have to report to MOTIE the disposal of capital goods when they have received approval from the head of the customs office. Furthermore, the revised decree will allow companies to check the eligibility of capital goods for tax reduction following customs clearance.

prayerahn@yna.co.kr

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