Investment Support for Korean Enterprises

Local Investment Promotion Subsidy

Relevant regulation: Guidelines for Support of State Treasury Funds to Municipal Government’s Inducement of Investment of Local Businesses (Notice by Ministry of Trade, Industry and Energy)

Local Investment Promotion Subsidy - types, content of support, types of subsidy, scope of support
Types	Contents of support			Types of subsidy		Scope of support
Types	Contents of support			Types of subsidy		Large enterprises	Middle-standing enterprises	Small and medium enterprises
Relocation of enterprises located within Seoul metropolitan area to the same metropolitan area	Eligibility for support	Among enterprises operating manufacturing, ICT or knowledge service business (some business types are excluded) Enterprises having been operated in overpopulated constraint district of Seoul metropolitan area for 3 years or more Relocation of factories located within overpopulated constraint district of Seoul metropolitan area to the same metropolitan area		Site subsidy		-	Within 20% of the land purchase price	Within 40% of the land purchase price
	Requirements for support	Existing business establishment having 10 or more regular employees Invested business establishment having 30 or more regular employees Having invested KRW 1 billion or more Existing business establishment having been closed or sold before investment is completed		Equipment subsidy	Not falling under regionally specialized industries	Within 8% of the equipment investment amount	Within 11% of the equipment investment amount	Within 14% of the equipment investment amount
	Requirements for support			Equipment subsidy	Falling under regionally specialized industries	Within 11% of the equipment investment amount	Within 16% of the equipment investment amount	Within 24% of the equipment investment amount
Newly founded or expanded enterprises	Eligibility for support	Among enterprises operating manufacturing, ICT or knowledge service business (some business types are excluded) Enterprises having been operated in Korea for 3 years or more consecutively Existing business having expanded or business line having been closely related to the existing business line		Equipment subsidy	Not falling under regionally specialized industries	Within 8% of the equipment investment amount	Within 11% of the equipment investment amount	Within 14% of the equipment investment amount
	Requirements for support	Having invested KRW 1 billion or more Existing business establishment having 10 or more regular employees Newly hired regular employees of the invested business establishment accounting for 10% or more of the regular employees of the existing business establishment (at least 10 persons) Maintaining the existing business establishment			Not falling under regionally specialized industries	Within 8% of the equipment investment amount	Within 11% of the equipment investment amount	Within 14% of the equipment investment amount
					Falling under regionally specialized industries	Within 11% of the equipment investment amount	Within 16% of the equipment investment amount	Within 24% of the equipment investment amount
		Newly established	Expanded
		Business facilities having been installed by constructing a new building, altering the purpose of use of the existing building or purchasing abandoned building within the province	Business facilities having been installed by expanding construction area of the existing business establishment
Application time limit	Equipment subsidy: 3 months from the day the construction commencement is reported Site subsidy: 1 year from the day the site purchase (change) contract is signed ※ In case an abandoned building is purchased, however, the state at the time of the purchase contract should be maintained until site survey by the concerned authorities
Notes	When the investor business has signed an investment agreement (MOU) with Sancheong-gun municipal government even before it started actual investment acts* * When application is filed for subsidy, inclusive of a site subsidy: the date the initial site purchase contract is signed * When application is filed for equipment subsidy only: the date of the initial construction commencement ※ The site and equipment subsidies should not be applied separately.

pointThe above information is a summary of the support contents. Please refer to the related provisions for the details.

Subsidy to Business Investment Promotion Zone

Relevant regulation: Ordinance and Enforcement Rules on Businesses and Investment, Etc. Within Gyeongsangnam-do

Subsidy to Business Investment Promotion Zone - Category, Site subsidy, Employment subsidy, Education/training subsidy, Equipment subsidy, Relocation subsidy
Category	Site subsidy	Employment subsidy	Education/training subsidy	Equipment subsidy	Relocation subsidy
Requirements for support	Enterprises having purchased or signed a lease contract of a building or factory site within the business investment promotion zone * Industrial complex designated as business investment promotion zone of Sancheong-gun: Maechon General Industrial Complex, Anti-Aging Oriental Medicine General Industrial Complex In case where an enterprise located outside the province is relocated to the relevant province or constructs or expands a new business establishment in the relevant province Excluding cases where a business establishment located within the province is relocated to the same province (support may be provided, however, to the increased portion of asset value or employees over those of the existing business establishment) Having invested KRW 2 billion or more Invested business establishment having 10 or more newly hired regular employees
Contents of support	Support of up to 50% of the sale price within the base area of a factory site	KRW 1 million per employee exceeding 10 persons for up to 12 months	(Korean nationals) KRW 1 million per employee exceeding 10 persons for up to 12 months	Support of up to 2% of the equipment investment amount in excess of KRW 2 billion	(Relocation of a business establishment located outside the province) Support of up to 2% of the relocated equipment value in excess of KRW 500 million
Limit of support	KRW 500 million	KRW 300 million	KRW 200 million	KRW 200 million	KRW 200 million
Application time limit	Within 5 years from the completion of investment plan	Within 5 years from the business commencement following the completion of investment plan	Within 5 years from the business commencement (following education/training)	Within 5 years from the business commencement	Within 1 year and 6 months from the business commencement
Notes	Business commencement date: Date the factory is registered (in case of manufacturing business) Education and training Education or training provided by public vocational training facilities, vocational skills development training facilities, etc. (subparagraph 2 of Article 7 of the Enforcement Rules) The business should be operated for 5 years from the day the subsidy settlement is requested (a part or whole of the subsidy amount is redeemed when the plan is not performed)

pointThe above information is a summary of the support contents. Please refer to the related provisions for the details.

Other Incentives for Investment

Relevant regulation: Ordinance and Enforcement Rules on Businesses and Investment, Etc. Within Gyeongsangnam-do

Other Incentives for Investment - Types, Requirements for support, Contents of support, Application time limit
Types	Requirements for support	Contents of support	Application time limit
Support to newly built or expanded enterprises	Among corporations that operate manufacturing, ICT, or knowledge service businesses Newly built or expanded business establishment located within the relevant province Having invested KRW 10 billion or more in equipment and having 30 or more newly hired regular employees	Support of up to 10% of the equipment investment amount (max. KRW 3 billion)	Within 3 months from the day construction work started
No-interest loan for site purchase	A startup under the Support for Small and Medium Enterprises Establishment Act Relocation of a business establishment located outside the province to the relevant province A new business establishment installed within the relevant province (support may be provided, however, to the increased portion of asset value or employees over those of the existing business establishment when relocating to the relevant province.) Having invested KRW 5 billion or more and having 20 or more employees	Up to 60% of the site purchase price is loaned (max. KRW 5 billion; equal annual repayment over 3 years without interest after 5 years of grace period	Within 1 year from the day the site purchase contract is signed
Support of site rent	Any enterprise relocated from outside the province to the relevant province or a newly built or expanded enterprise An enterprise that has signed lease contract for a site in an industrial complex or State or public land under the Industrial Sites and Development Act Having invested KRW 10 billion or more in equipment and having 30 or more newly hired regular employees	Support of up to KRW 300 million a year supported for 10 years within 70% of the land rent	Within 1 year from the day the initial site lease contract is signed
Special support to enterprises investing large amounts	Having invested KRW 50 billion or more or having 150 or more newly hired regular employees	Up to 10% of the amount invested in equipment (max. KRW 10 billion)	Within 1 year from the day the site purchase or lease contract is signed
Investment support for large-scale research institute	Having invested KRW 50 billion or more and having 100 or more regular employees	(Site subsidy) Up to 30% of the site purchase price (Settlement subsidy) KRW 1 million per person for 3 years	Within 1 year from the day the site purchase or lease contract is signed
Relocation of an enterprise from another province to the relevant province	Among corporations that operate manufacturing, ICT, or knowledge service businesses Relocation of an independent business establishment of an enterprise that has operated in Korea for 2 or more years to Gyeongsangnam-do Having invested KRW 5 billion or more and invested business establishment having 20 or more regular employees Existing business establishment having been closed or sold before the investment is completed	Up to 5% of the amount invested in facilities (max. KRW 1 billion)	Within 6 months from the completion of investment plan
Relocation of home office to the relevant province	Any enterprise relocating its home office from another province to the relevant province	Support of up to KRW 300,000 per person exceeding 10 persons at the home office (max. KRW 200 million)	Within 1 year from the day the home office is relocated

pointThe above information is a summary of the support contents. Please refer to the related provisions for the details.