Support for Business Activities
Location Support
Support for Business Activities Location Support Table - Lease, Rent Reduction Provided Table
| Lease |
- It is possible to lease national and public land within a period of 50 years
- The rent is calculated by multiplying the land value by a rate of 10/1,000 or more.
|
| Rent Reduction |
100% reduction |
- More than $1 million in high-tech projects
- More than $20 million in investments
- Average full-time employment of more than 300 people
- Export more than 50% of total production, procurement of 100% of domestic parts and raw and subsidiary materials
- 100% of total output for export business
|
| 75% reduction |
- Foreign investment amount of more than $10 million and less than $20 million
- Average full-time employment of more than 200 and less than 300 people
- Export more than 50% of total production, procurement of domestic parts and raw materials is more than 75% and less than 100%
- More than 75% and less than 100% of total output for export business
|
| 50% reduction |
- Foreign investment amount of more than $5 million and less than $10 million
- Average full-time employment per day is more than 100 and less than 200
- Export more than 50% of total production, procurement of domestic parts and raw and subsidiary materials is more than 50% and less than 75%
- More than 50%~less than 75% of total output for export business
|
| Sale of property |
- (National public property) The sale of construction costs is possible with a private contract
|
Subsidy Support
Support for Business Activities Subsidy Support Table - Targets, Category, Benefits and Conditions Provided Table
| Targets |
Category |
Benefits and Conditions |
| National and Local Taxes |
Location Subsidy |
- Support only for the difference between the normal sale price and the sale price, specified in the contract
- It cannot exceed 50% of the normal sale price, and the business stated in the business plan must be run for more than 10 years.
|
| Subsidy for Facilities |
- In the case of new or expanded facilities of 3 billion won or more, falls within the range of 2% of the facility amount exceeding 3 billion won (up to 200 million won per company)
|
| Financial Support |
- Receive financial support equivalent to that of local companies
|
| Corporate Relocation Grant |
- Total sales should be more than 40 billion won in the previous year (more than 10 billion won in the logistics industry and knowledge-based industries)
- For more than 20 full-time people employed at the head office or research institute, the range of KRW 300,000 is provided per person (up to KRW 300 million per company)
- Logistics and knowledge-based industries: Range of 30% of building purchase fee or 1-year rental fee (up to 200 million won per company)
|
| Employment Subsidy |
- In the case of the establishment of a new investment company, if there are more than 20 new regular employees, support within the range of 500,000 won
- per person per month is provided Support for additional hires within 5 years of the start of the project
|
| Education and Training Grants |
- When hiring 30 or more new Koreans, up to 500,000 won per person within the range of 6 months (up to 200 million won per company) will be provided
|
National Treasury Subsidy Project to support the attraction of foreign educational and research institutions
- Basis for support: Guidelines for the operation of the National Treasury subsidy project to support the attraction of foreign education and research institutions (Announced by the Ministry of Trade, Industry and Energy)
- Details of support (see table below)
Support for Business Activities National Treasury Subsidy Project to support the attraction of foreign educational and research institutions Table - support target, Details, Support Items, Support amount, Application Timeline 제공 표
| Leasing |
Foreign Educational Institutions |
Foreign Research Institutions |
| Details |
Higher Education Institutions (Universities overseas)
* Top Universities in the World
University Rankings (see Operation Tips)
|
Elementary and Secondary Education Institutions
(International School / Foreign School)
|
- University-affiliated research institutes
- Non-profit research institutes
- Foreign-established research institutes
- Corporate (affiliated) research institutes
|
| Support Items |
- Establishment preparation fees
- Required fees that establishment entails
- Feasibility study, legal review, travel expenses, etc.
- Initial operating costs
- Operational costs
- Relocation and settlement of faculty and researchers, labor costs, facility costs, etc.
- Construction costs
|
- Initial operating costs
- In the event of an operational deficit, after-sales support
- Construction costs
|
- Initial operating costs
- Operational costs
- Relocation and settlement of faculty and researchers, labor costs, facility costs, etc.
|
| Support amount |
- Establishment preparation fees
- Up to KRW 1.2 billion
(Government expenses: local expenses = 50:50)
- Initial operating costs
- Differential support according to application criteria such as the number of students
- (Government expenses: local expenses = 50:50)
|
- Initial operating costs
- Differential support according to application criteria such as the number of students
(Government expenses: local expenses = 50:50)
|
- Percentage of Payments
- Government expenses: Local expenses = 50:50
(Government expenses 500 million won, municipal expenses 500 million won)
- Procurement of private contributions required
- University-affiliated research institutes: 10% of the annual grant from the university is secured every year
- Non-profit/foreign (established) research institutes: twice the government expenditure
- Corporate (affiliated) research institutes: 4 times the government expenditure
|
- Construction costs
- Requires a full private contribution plan
- Amount to be determined based on the results of the expert advisory committee's deliberations
(Subsidies cannot exceed private contributions)
|
| Application Timeline |
- Establishment preparation fee
- After the conclusion of the final agreement
- Payout in 3 installments
- Initial operating costs
- After the establishment was approved by the Minister of Education
- Within the range of 4 years based on the initial payment year
(Depending on the results of the performance evaluation, additional support for 3 years is possible)
|
- Initial operating costs
- Within the range of 3 years after 1 year of establishment
- Construction costs
- After local government deliberations and the conclusion of the final agreement
* Foreign schools: Final agreement and superintendent establishment approval are required
|
- Support can be provided within the range of 7 years based on the initial payment year
|
Subsidy Support
- National treasury preferential support for infrastructure within the IFEZ (in whole or part)
Administrative Support
- One-stop administrative support and Ombudsman service for the handling of management and living grievances of foreign-invested companies