Eligible Businesses for Cash Grant in Korea
Updated: Sep 5
Foreign investments made by the acquisition of new stocks and with ratios of foreign investment 30% or greater are eligible for cash grants. Investments with long-term loans are excluded.
New Growth Engines
New growth engines and source technologies, materials and production processes directly related to new growth engine technologies ※ Related laws: Article 121.2.1.1 of the Restriction of Special Taxation Act, Attached Table 7 of the Enforcement Decree of the Act, Attached Table 14 of the Enforcement Rule of the Act
High Technologies
Establishment of new or additional factories for high technologies and high-tech products
※ Related laws: Article 5 of the Industrial Development Act, Public Notice No. 2019-121 of the Ministry of Trade, Industry and Energy (July 26, 2019), Attached Table 1 of the Range of High Technology and High-Tech Products (to be enforced by 2020)
Materials and Parts
Textiles, pulp, chemicals, medicine, rubber, plastics, nonmetallic minerals, primary metals, metal processing, electronic parts, computers, imaging·audio·telecommunication equipment, medical·precision·optical instruments, electrical equipment, machinery equipment, automobiles·trailers, other transportation equipment, furniture, etc.
※ Related laws: Article 2 of the Act on Special Measures for the Promotion of Specialized Enterprises, etc. for Materials and Components, Attached Table 1 of the Enforcement Rule of the Act
Job Creation
Manufacturing· construction· transport· information service businesses that employ 300 or more people; wholesale and retail· lodging· financial insurance· specialized science and technology· leisure service businesses that employ 200 or more people; education services, other personal service businesses, etc. that employ 100 or more people; and real estate and lease businesses that employ 50 or more people
※ Related law: Attached Table 2 of the Enforcement Decree of the Foreign Investment Promotion Act
R&D Centers
New or additional research facilities that are engaged in new growth engine technologies, high technologies and high-tech products, and parts and materials businesses (to be enforced in 2020) that hire five or more full-time research staff members (with master’s degrees in relevant fields or bachelor’s degrees and at least three years of research experience)
※ Related law: Article 14.2.1.4 of the Foreign Investment Promotion Act
Regional Offices
Regional offices that are established by global companies to support and manage production, sales, logistics, and HR, etc. of two or more overseas corporations (at least KRW 3 trillion of total sales of an overseas parent company, at least 50% of foreign investment ratio, at least ten full-time workers per core function of business, etc.), and that are deliberated upon by the Foreign Investment Committee and designated by the Minister of Trade, Industry and Energy
※ Related law: Article 9.3 of the Enforcement Decree of the Foreign Investment Promotion Act
Others
Businesses that are engaged in industries that are specialized in certain regions that create jobs and strengthen the competitiveness of local industries, and that are acknowledged for their contributions to economic development in the regions
※ Related law: Article 2.4 and 5 of the Special Act on Balanced National Development
*This article is extracted from Invest KOREA Magazine, March 2022.
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