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 |
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Application deadline |
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Caution |
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Area type
Category | City.County |
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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 |
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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 |
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---|---|---|---|---|---|
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 |