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Support for Business Activities

Location Support

Location Support - Lease, Rent Reduction, Sale
Lease
  • Possible leasing of national and public sites withing 50-year period
  • The rent is calculated by multiplying the rate by more than 10/1,000 of the land value
Rent Reduction 100%
  • More than $1 million in advanced technology industry
  • More than $20 million in external investment
  • More than 300 daily average employees
  • More than 50% of production as exports, 100% procurement of national parts and raw materials
  • Exportation is 100% of entire production
75%
  • Foreign investment sum between $10-20 million
  • Average daily employment of 200 to 300 people
  • More than 50% of production as exports, between 75-100% procurement of national parts and raw materials
  • Between 75-100% of production as exports
50%
  • Foreign investment rate between $5-10 million
  • Average daily employment of 100-200 people
  • Greater than 50% of production as exports, procurement of national parts and raw materials between 50-75%
  • Between 50-75% of production as exports
Sale
  • (National and public property) Sale of composition cost possible through optional contract

Subsidy Support

Subsidy Support - Subject, Category, Details
Subject Category Details
over 30% of the total investment only Locational Subsidy
  • Grants the difference between normal lotting-out price and actual price as specified in the written agreement
  • It shall not exceed 50% of the normal price and it is limited to the business continuing for more than 10 years as described in the business plan.
Subsidy for facilities
  • In the case of building new or additional facilities costiong over KRW 3 billion → Within 2% of the amount exceeding KRW 30 million (up to KRW 200 million per company)
Financial
  • Equivalent to domestic companies
Subsidy for Company Relocation
  • Requirement: Sales of last year should be over KRW 40 billion. (for logistics and knowledge-based industry, over KRW 10 billion)
  • KRW 300,000 per additional person in excess of 20 regular workers in the head company or the research center (up to KRW 300 million per company)
  • Logistics & Knowlwdge-based industry: up to 30% of the purchase price or the one-year lease price of the building (up to KRW 200 million per company)
Subsidy for Employment
  • In the case of establishing new foreign investment company and employing more than 20 workers as regualr employees: up to KRW 500,000 per additional person in excess of 20 already hired
  • In the case of additional employment in the 5 years after the start-up: same as above
Educational & Training Subsidy
  • In the case of employing more than 30 new Korean workers: up to KRW 500,000 per person for 6 months (up to KRW 200 million per company
National Subsidy Program for Supporting Attraction of Foreign Educational Institute
  • Support Ground : Operation Guide of National Subsidy Program for Attracting Foreign Educational Institute Investment (notification of the Ministry of Trade, Industry and Energy)
  • Details
National Subsidy Program for Supporting Attraction of Foreign Educational Institute - Subject, Support Item, Supporting Cost, Period
Subject Foreign educational institute (international school, foreign university) Foreigner school Foreign research institute(university-attached research institute, non-profit research institute, research institute built by foreigner, corporate (attached) research institute)
Support Item Establishment stand-by cost (costs necessary for establishment, including feasibility research, legal review, traveling expenses, etc.) Primary operating costs (for move-in and settlement of faculty and researcher & for operating expenses of institute like personnel expenses, occupancy expenses, etc.)Construction costs Initial operating costs (for move-in and settlement of faculty and researcher & for operating expenses of institute like personnel expenses, occupancy expenses, etc.)
Supporting Cost Establishment stand-by cost: maximum KRW1.2billion (50% from national fund, 50% from municipal fund) Initial Operating Costs Kindergarten, Elementary, Middle School: maximum KRW600million per year(50% from national fund, 50% from municipal fund) High School: different supports according to support criteria such as the number of student Construction costs : within private fund Proportion of Fund Support Non-profit research institute, foreigner (establishment) research institute : within private fund Corporate (attached) research institute : Within the half of private fund Maximum KRW2billion per year (50% from national fund, 50% from municipal fund)
Period Establishment stand-by cost : support after concluding final agreement Initial operating costs : maximum 4 years after establishment approval Maximum 5 years

Infrastructure Support

  • National treasury preferential support for infrastructure within FEZ (total or partial)

Administrative Support

  • One-Stop administrative support, resident foreign investment company management, and ombudsman management for daily life issues
  • Association of Commercial Arbitration for commercial dispute resolution and maintenance of order in international business