- Cash Grants
Application for Cash Grants
Application DocumentsA foreign investor who intends to receive a cash grant submit documents, such as a cash grant application form and investment plans, and a project manager’s written opinion about the cash grant to the Ministry of Trade, Industry and Energy.
Review of ApplicationAn evaluation committee consisting of negotiating parties—including officials from the Ministry of Trade, Industry and Energy and the local government, a project manager from InvestKorea, and experts from relevant fields—reviews the application and eligibility for the cash grant. The level of technology, technology transfer effects (technology evaluation), overlap with domestic investment (industrial evaluation), and viability of investment (financial evaluation) are reviewed.
Evaluation of Cash Grant LimitsA cash grant limit calculation committee consisting of negotiating parties and two or more private experts reviews the possibility of investment outside of Korea, job creation effects and quality of employment, the appropriateness of locations, and potential effects on the regional and national economy. The committee then calculates a limit and submits a report to the Ministry of Trade, Industry and Energy. A cash grant is negotiated between a negotiator and a foreign investor within the limit decided by the committee.
Negotiation and Decision on Cash Grant Amounts
Applicants must open separate accounts and perform accounting for their cash grants, clearly distinguishing them from other revenues and expenditures.
In the case of installments, applicants may submit an application form that includes scale, purpose, and details of cash grants of the year. Cash grants are then paid after evaluating the execution of investment expenditure plans or cash grants, and the amount and time of payment may be adjusted.
|Category||Requirements for Tax Reductions or Exemptions|
|Land purchase costs||Paid in installments (middle or final payment) after concluding a contract for land purchase|
|Land rental fees||Paid in accordance with a lease contract concluded between the applicant and the owner of the leased land or its entrusted manager|
|Construction costs, capital goods and research equipment purchase costs, infrastructure (electricity and telecommunication facilities) installation fees||Paid after evaluating the execution of investment expenditure plans|
|Education and training subsidies and employment subsidies||Paid after evaluating the execution of employment plans within the investment period|
|Others||Paid in accordance with the Subsidy Management Act and the Local Finance Act.|