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Local investment promotion subsidies

Local Investment Promotion Subsidies

Relevantlaws/regulations

Based on the central governments financial subsidies for local governments attracting investors.

Procedure

Enterprise attraction
  • The enterprise signs MOU with the province and city/district before the actual investment date*
    *In the caseofapplying forsubsidies like businesssite subsidies, the signing dateofthe first site contract
    *In the case of applying forfacility subsidies, the date of the first construction start report

Application deadline
  • In the case of applying forfacility subsidies: within 3months from the date of the construction start report
  • In the case ofapplying forsubsidies, including business site subsidies: within 1 year from the signing date of the site contract
    *In the case of purchasing anabandoned building, the building must maintain the state atthe time ofthe purchase contract until the on-site investigation by the relevant institutions

Caution
  • May not separately apply for business site subsidies
  • Should conduct business following the business plan of the existing establishment(employment and business type) for 5years from the payment application date

    →Should return the subsidies plus interest in the case of noncompliance

  • Payment application should be filed within3 months from the investment completion date
Area type
Category City.County
High-RangeBalanced DevelopmentAreas Changwon(excluding Jinhae), Jinju, Gimhae Geoje, Yangsan
Mid-Range Balanced Development Areas Sacheon, Miryang, Haman, Goseong, Geochang
Low-Range Balanced Development Areas Uiryeong, Changnyeong. Namhae, Hadong,Sancheong, Hamyang, Hapcheon
Industrial Crisis Special Response Areas, etc. Changwon(Uinhae), Tongyeong, Geoje, Goseong
*Industrial Crisis Special Area designation period : May29, 2021 ~ May28, 2023
A businessin SCA Overcrowding Control Regionrelocating to Gyeongsangnam-do
Type of Investment

In the case of an enterprise located in SCA Overcrowding Control Region* invests and relocates business site to Gyeongsangnam-do

Eligibility

Corporations mainly engaged in manufacturing, ICT, or knowledge service industries(excluding wholesale, product brokerage business, video exhibition room business, news provision business, blockchain-based encrypted assets sales, and brokerage business)
① An enterprise that operated in SCA Overcrowding Control Region for and one consecutive year or more with factory facilities or operated its head office, research institute, etc. in the region for an one consecutive year or more
② An enterprise of which the business establishment to be relocated to Gyeongsaingnam-do has 30 or moref ull-time employees
③ An enterprise thatsigned MOU the relocation with the relevant City-County or Gyeongsangnam-do

Performance Requirements

① Must relocate its head office, factory, research center, etc. in SCA Overcrowding Control Region to Gyeongsangnam-do
② Must conduct the same business in the relocated business establishment as the existing stablishment (the same group under the Korea Standard Industrial Classification)
③ Must have 30 or more full-time employees at the relocated establishment
④ Amount of investment: Must be KRW 1 billion or higher(KRW30 billion or higher for large enterprises)
⑤ Existing business establishment: Must be closed or sold before the completion of the investment(or by the end of the business performance period if justified by and unavoidable reason)

Benefits
Area type Subsidy
type		 Subsidy ratio Central
government
contribution
Large
enterprise		 Middle-standing
enterprise		 SME
High-RangeBalanced Development Areas Site Purchase - - With in 9% of the land price Up to 45/100 of subsidies
Facilities With in 3% of facility investment With in 5% of facility investment With in 7% of facility investment
Mid-Range Balanced Development Areas Site Purchase - With in 10% of the land price With in 30% of the land price Up to 65/100 of subsidies
Facilities Within 5% of facility investment Within 7% of facility investment Within 9% of facility investment
Low-RangeBalanced Development Areas Site Purchase - Within 20% of the land price Within40% of the land price Up to 75/100 of subsidies
Facilities Within 8% of facility investment Within 11% of facility investment Within 14% of facility investment
Industrial Crisis Special Response Areas, etc. Site Purchase - Within 25% of the land price Within 50% of the land price Up to 75/100 of subsidies
Facilities Within 11% of facility investment Within 19% of facility investment Within 24% of facility investment

*SCA Overcrowding Control Region

  • Seoul
  • Incheon (excluding Ganghwa-gun, Ongjin-gun, Seo-gu Daegok-dong/ Bullo-dong/Majeon-dong / Geumgok-dong / Oryu-dong / Wanggil-dong / Dangha-dong /Wondang-dong, Incheon Free Economic Zones [including the areasreleased from Free Economic Zone designation] and Namdong National Industrial Complex)
  • Gyeonggido : Uijeongbu, Guri, Namyangju(only Hopyeong-dong, Pyeongnae-dong, Geumgok-dong, Ilpae-dong, Ipae-dong, Sampae-dong, Gaun-dong, Suseok-dong, Jigeum-dong and Donong-dong), Hanam, Goyang, Suwon, Seongnam, Anyang, Bucheon, Gwangmyeong, Gwacheon, Uiwang, Gunpo, Siheung(excluding Banwol Special Area [Including areas released from Banwol Special Area designation])
Investment in business establishmentconstruction / expansionin Gyeongsangnam-do
Investment type

In the case of an enterprise invest for business establishment constructior/expansion in Gyeongsangnam-do

✔ New Construction?

Must build business facilities by constructing a new business establishment, changing the use of an existing establishment, or purchasing an abandoned building

✔ Expansion ?

Must build business facilites by increasing the floor area of an existing establishment

Eligibility

Corporations mainly engaged in manufacturing, ICT, or knowledge service industries (excluding wholesale, product brokerage business, video exhibition room business, news provision business, blockchain-based encrypted assets sales, and brokerage business)
① An enterprise that operated in Korea for an one consecutive year or more
② An enterprise of which the existing business establishment has 30 or more full-time employees
③ An enterprise that signed MOU for the business establishment construction /expansion with the relevant City·County or Gyoengsangnam-do

Performance Requirements

① New Construction Must build business facilities by constructing a new business establishment, changing the use of an existing establishment, or purchasing an abandoned building Expansion Must build business facilites by increasing the floor area of an existing establishment
② Must have more full-time employees at the new business establishmen than the existing business establishment by at least 10% (10 full-time employees or more)
*30 full-time employees or more for SMEs and Middle-standing enterprise, 70 full-time employees or more for large enterprise with an existing business establishment
③ Amount of investment: Must be KRW 1 billion or higher (KRW 30 billion or higher for large enterprises)
④ Must maintain the existing business establishment (no closure, sale, lease, or reduction)*Not applicable to SCA Overcrowding Control Region

Benefits
Area type Subsidy
type		 Subsidy ratio Central
government
contribution
Large
enterprise		 Middle-standing
enterprise		 SME
High-RangeBalanced Development Areas Facilities Within3% of facility Investment Within 5% of facility Investment Within 7% of facility Investment Up to 45/100 of subsidies
Mid-Range Balanced Development Areas Facilities Within5% of facility Investment Within7% of facility Investment Within9% of facility Investment Up to 65/100 of subsidies
Low-Range Balanced Development Areas Facilities Within8% of facility Investment Within11% of facility Investment Within14% of facility Investment Up to 75/100 of subsidies
Industrial Crisis Special Response Areas, etc. Facilities Within11% of facility Investment Within19% of facility Investment Within24% of facility Investment Up to 75/100 of subsidies
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