What is the cash aid system?

  • Author
    gg_multi
  • Date
    2021-12-28 11:51
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    3954
Cash-Grant refers to a system that provides cash support for a portion of the investment amount when a foreign company invests in Korea.
According to the Foreign Investment Promotion Act, for foreign investment that meets certain requirements, construction of factory facilities, etc. is prohibited in consideration of whether the foreign investment is accompanied by advanced technology, the effect of technology transfer, the scale of job creation, the overlap with domestic investment, and the appropriateness of the location. We provide cash for the necessary funds for
To be eligible for cash grant, foreign investment with a foreign investment ratio of 30% or higher must meet the following conditions.
Investment in new or expansion of factory facilities (or workplaces) in industrial support service businesses with foreign investment of $10 million or more, businesses involving high technology, manufacturing of parts and materials, or investments that create new large-scale employment
New/expansion of R&D research facilities in fields related to industrial support service businesses and businesses involving high technology, or research facilities funded by foreign nationals to non-profit R&D corporations (the number of full-time research personnel employed is 5 or more)
If the investment amount does not meet the criteria, but has a large effect on the domestic economy, cash support is possible after deliberation by the Foreign Investment Committee.
The cash grant rate supports at least 5% of the minimum foreign investment (FDI), but the upper limit is determined by an undisclosed formula.

※ The 10 million dollar requirement is temporarily abolished from 2010.10.06 to 2012.12.31.