CHUNGCHEONGBUK-DO < invest Korea

Article 1 (Purpose)

The purpose of this Regulation is to stipulate issues mandated by the Chungcheongbuk-do Ordinance on Enterprises and Investment Promotion (hereinafter referred to as "Ordinance") and related issues necessary for the enforcement of the Ordinance.

Article 2 (Definition)

The terms used in this Ordinance shall be defined as follows. <Amended on November 30, 2007>

1. 1. "Factory Relocation and Establishment" shall refer to transfer or closure of factories in provinces other than Chungcheongbuk-do (hereinafter referred to as the "Province"), relocation and establishment of new factories, provided that acquisition of factories through auction or other means shall not be considered as Factory Relocation and Establishment.
2. 2. "Factory Relocation and Expansion" shall refer to expansion of factory facilities or establishment of new factories in the Province by an enterprise that has already operated factories within the Province, provided that acquisition of factories through auction or other means shall not be considered as Factory Relocation and Expansion.
3. 3. "Factory Expansion within the Province" shall refer to expansion of factories in the Province or existing factory site by an enterprise that has already operated factories within the Province and have not transferred, demolished, or closed the existing factories in the Province, provided that establishment of new factories after demolition or closure of existing ones due to changes in government-led urban development plan shall be considered as Factory Expansion within the Province.

Article 3 (Meeting of Investment Promotion Committee)

1. ① The Chairman shall inform the date, location, and purpose of the meeting through a written notice at least three days before the meeting, if he or she is to convene a meeting, barring special occasions that require urgency.
2. ② The Committee may reach an agreement through a written consent, in cases deemed necessary by the chairman.
3. ③ The Committee shall deliberate on any matter concerning the management of the Committee that is not prescribed in this Regulation, and the Chairman shall make final decisions after deliberation by the Committee.

Article 4 (Investment Promotion Advisory Council)

1. ① Members of the Investment Promotion Advisory Council (hereinafter referred to as the "Council") pursuant to Article 10.3 of the Ordinance shall be appointed by the Governor of Chungcheongbuk-do (hereinafter referred to as the "Governor") among any of the following candidates.
   1. 1. Domestic and foreign experts on investment promotion
   2. 2. Executives in investment promotion agencies or trade promotion organizations
   3. 3. Anyone with ample experience and expertise in investment promotion

Article5 (Investment Promotion Advisor)

1. ① Investment Promotion Advisors shall provide the Governor with professional advice on investment promotion, and information on corporate investors and investment promotion activities.
2. ② Investment Promotion Advisors shall frequently offer the Governor information on the promotion activities of the Council.

Article 6 (Council Meeting and Expense Payment)

1. ① The Governor may convene a meeting of the Council in entirety or by business sector, and provide allowances and expenses within the budget to members of the Council who attend the meeting in accordance with the Chungcheongbuk-do Ordinance on Expense Compensation for Various Committees.
2. ② The Governor shall provide Investment Promotion Advisors on the Council with allowances to pay consulting service fees and expenses for investment promotion activities.
   1. 1. Consulting service fee: refer to the rate stated in annexed Table 1
   2. 2. Expenses for investment promotion activities and data collection: refer to the provision on expense payment stipulated in Subparagraph 4 of the annexed Table 1 of the Regulations on Expense Payment for Public Officials.

Article 7 (Dismissal of Investment Promotion Advisors)

The Governor may dismiss an Investment Promotion Advisor who are no longer able to serve his or her duty under unavoidable circumstances or for other reasons, for instance because of undermined reputation.

Article 8 (Fund Provision Standards)

1. ① Eligibility of beneficiaries and loan provision standards of the Investment Promotion Fund pursuant to Article 14.2 of the Ordinance shall be as follows.
   <Amended on September 18, 2009>
   1. 1. In accordance with Article 30 of the Ordinance, a company that makes investment of over KRW 5 billion, and hires over 100 full-time employees or procures over 50 percent of raw materials with supplies within the Province shall be eligible for receiving loans from the fund, provided that a company located around a military base may hire 50 full-time employees to receive financial support from the fund.
   2. 2. Fund loans shall not exceed 20 percent of the factory site purchasing cost
2. ② Anyone who wishes to receive the fund to purchase factory sites in accordance of Paragraph 1 hereof shall submit an application for factory site purchasing loans (hereinafter referred to as the "Loan Application") of the annexed Table 1 to the mayor or county governor of the relevant jurisdiction, within a year after land purchase, and the mayor or county governor shall submit the Loan Application Form to the Governor.
3. ③ The Governor shall inform the results of deliberation of the Loan Application pursuant to Article 2 hereof by the Committee to corporate applicants, relevant financial institutions, and city or county government.
4. ④ The mayor or county governor shall document and publish the loan support ledger for follow-up management of the fund in the form of Annex 2, and send a copy of the ledger to the Governor.

Article 9 (Loan Repayment and Interest Rate)

1. ① Loans shall be redeemed over two years in installments after a three-year grace period.
2. ② Loans shall be paid at an interest rate of one percent per annum, provided that the recipient who redeems the loans past the repayment period shall pay overdue interest in accordance with the interest rates determined by a related financial institution.
3. ③ The recipient may defer repayment of loans under force majeure events beyond the reasonable control.

Article 10 (Withdrawal of Fund)

1. ① The mayor or county governor may have the beneficiary of the loans refund part or whole of the loans even before the repayment period and take necessary measures with regard to withdrawal of the fund in any of the following categories.
   1. 1. When loans are used for purposes other than the original objective
   2. 2. When it is unable to achieve the purpose of the loans
   3. 3. When the recipient fails to serve the assigned duty in accordance with the Ordinance or Regulations
2. ② The mayor or county governor shall collect part or whole of the loans and return them to the Chungcheongbuk-do Investment Promotion Fund under any of the circumstances described in Paragraph 1 hereof.
3. ③ Loans shall be withdrawn in accordance with local tax regulations.

Article 11 (Conclusion of Consignment Agreement)

Issues to be discussed and determined in accordance with Article 15.3 of the Ordinance shall be as follows:

1. 1. Issues on fund-raising and fund management
2. 2. Issues on interest subsidies
3. 3. Issues on terms of loans and procedures
4. 4. Issues on business consignment and payment of service fees
5. 5. Other issues stipulated in the Ordinance and Regulations

Article 12 (Detailed Information)

Detailed information on the management of the fund may be severally stipulated in separate provisions.

Article 13 (Special Treatment for Civil Affairs)

Types and procedures of FDI-related affairs that take precedence over other civil affairs in accordance with Article 18 of the Ordinance shall be subject to the provisions of Article 17 of the Foreign Investment Promotion Act (hereinafter referred to as the "Act").

Article 14 (Eligible Foreign Investment)

1. ① Any foreign-invested company seeking financial assistance for foreign investment prescribed in Article 20 or Article 24 of the Ordinance shall have a foreigner as the largest shareholder or over 30 percent of foreign ownership.
2. ② If a foreign company owns shares with voting rights directly or indirectly through a Korean national or domestic corporation, the portion of stock ownership shall not be included in calculating the foreign investment ratio.
3. ③ The total amount of subsidies for a foreign invested enterprise shall not exceed 50 percent of investment by the foreign invested enterprise in the same year.

Article 15 (Subsidy for Land Sales)

1. ① The Governor shall subsidize the difference between the original land purchasing price and discounted price in accordance with Article 20 of the Ordinance.
2. ② Subsidies pursuant to Paragraph 1 hereof shall not exceed 50 percent of the sales price, and beneficiaries of the subsidies shall maintain the business described in the business proposal submitted to apply for subsidies for at least ten years, unless there is a just reason to close the business.
3. ③ Anyone who wishes to receive subsidy for the difference between the original land price and discounted price shall submit an application in the form of Annex 3 to the Governor within a year after the contract is signed.

Article 16 (Education and Training Subsidy)

1. ① Employ education and training subsidy pursuant to Article 21 of the Ordinance may be provided for up to five years after registration of a foreign invested company.
2. ② Employ education and training subsidy pursuant to Paragraph 1 hereof shall be provided to a company that hires residents in the Province and shall not exceed KRW 1 billion per company.
3. ③ Education and training pursuant to Paragraph 1 hereof shall refer to employ education and vocational training at public vocational training facilities, designated facilities, educational institutes of college level or higher stipulated in Article 2 Paragraph 3 of the Act on the Development of Occupational Abilities of Workers or other institutions recognized by the Governor.
4. ④ Anyone who wishes to receive education and training subsidy shall submit an application in the form of Annex 4 to the Governor.

Article 17 (Employment Subsidy)

1. ① Employment subsidy pursuant to Article 22 of the Ordinance shall be provided for up to five years after registration of a foreign invested company in accordance with Article 21 Paragraph 1 of the Act, and the beneficiary of the subsidy shall maintain the size of employment for at least three years.
2. ② Subsidy pursuant to Paragraph 1 hereof shall be provided to a company that hires residents in the Province and shall not exceed KRW 1 billion per company.
3. ③ Any company that wishes to receive employment subsidy shall submit an application in the form of Annex 5 to the Governor in the year after new employment.

Article 18 (Support for Company Relocation)

1. ① Relocation subsidies pursuant to Article 28 of the Ordinance shall be provided to a company that moves its headquarters, research institute, factory facilities from other areas to the Province or newly build or expand such facilities within the Province, especially in high-tech business or businesses with advanced technologies. However, industrial sectors such as butchery (excluding meat processing), ready-made cement, asphalt cement, brick, block, cement, concrete pipe, plastic products, tobacco materials, and regenerating materials shall be excluded from eligible businesses, and sectors that have little economic effect yet produce much pollution may be excluded as well.
2. ② If a company acquires a building upon relocation of headquarters or research institute in accordance with Article 28.2 of the Ordinance, the area that is not used directly by the company shall be excluded from the total floor area of the building.
3. ③ Anyone who wishes to receive subsidy for relocation of the headquarters or research institute shall submit an application in the form of Annex 6 or Annex 7 within a year after the date of relocation of the headquarters or research institute, to the mayor or county governor, who shall in turn submit the application to the Governor.
4. ④ Anyone who wishes to receive factory relocation subsidy pursuant to Article 28.3 of the Ordinance shall submit the certificate of factory registration or certificate of operation within four years of the conclusion of the contract (application for approval of factory establishment) and any company that signed the contract before complete construction shall submit an application in the form of Annex 8 within four years after the potential date of initial operation to the mayor or county governor, who shall in turn submit the application to the Governor.
5. ⑤ Subsidies pursuant to Paragraph 4 hereof shall be provided for up to 50 percent of the subsidy, if over 50 percent of construction is complete. The rest of the subsidy shall be provided upon the final application

Article 19 (Support for Facility Investment)

1. ① Any company that wishes to receive subsidy for building new factories within the Province in accordance with Article 19.1 of the Ordinance shall submit an application in the form of Annex 9 within four years after the purchase of the land or conclusion of the contract, and a company that wishes to receive subsidy for facility expansion within the existing factory site in accordance with Article 29. 2 of the Ordinance shall submit an application in the form of Annex 9 within four years after the factory expansion to the mayor or county governor, who shall in turn submit the application to the Governor. <Amended on November 30, 2007>
2. ② Application of subsidies pursuant to Paragraph 1 hereof shall be subject to the provisions of Article 18.5.

Article 19-2 (Support for Service Business)

Any company that wishes to receive subsidy for services industry as stipulated in Article 29.2 of the Ordinance shall submit an application in the form of Annex 17 within a year after the launch of the business to the mayor or county governor, who shall in turn submit the application to the Governor, provided that the Committee shall make decisions on the timing of application for the subsidy, if necessary. <Newly Established on September 8, 2009>

Article 20 (Designation of Investment Promotion Zone)

1. ① An industrial complex or agro-industrial complex shall has at least 33,000㎡of sellable land or less than 70 percent of land sales ratio to be designated as Foreign Investment Promotion Zone in accordance with Article 30.1.1 (hereinafter referred to as "Investment Promotion Zone"). <Amended on September 18, 2009>
2. ② Companies eligible to move into the Investment Promotion Zone are as follows:
   1. 1. Companies that relocate factories from other provinces to the Province
   2. 2. Companies that build new factories or expand facilities within the Investment Promotion Zones in the Province
3. ③ Issues with regard to designation and management of the Investment Promotion Zone pursuant to Paragraphs 1 and 2 hereof shall be determined by the Governor after deliberation by the Committee.

Article 21 (Education and Employment Subsidy for Relocated Companies)

Any company that relocates its operations to the Province or expand factories within the Province in accordance with Article 31 of the Ordinance shall submit an application for employment or education and training in the form of Annex 10 and Annex 11 to the mayor county governor, who shall in turn submit the application to the Governor. <Amended on November 30, 2007>

Article 22 (Special Support for Large Investor)

1. ① Any company that wishes to receive special support in accordance with Article 33 Paragraph 1 of the Ordinance shall submit an application in the form of Annex 6 or Annex 11 to the mayor or county governor, who shall in turn submit the application to the Governor. <Amended on November 30, 2007 and on September 18, 2009>
2. ② Any company that wishes to receive subsidy for employees’ settlement in accordance with Article 33 Paragraph 2 of the Ordinance shall submit the application in the form of Annex 18 to the mayor or county governor, who shall in turn submit the application to the Governor. <Newly Established on September 18, 2009>
3. ③ The Committee may determine when to provide the special support pursuant to Paragraph 1 hereof. <Amended on November 30, 2007 and on September 18, 2009>

Article 23 (Support for Dispatched Workers)

The Governor shall severally determine the amount of financial assistance for workers dispatched from a private institution as prescribed in Article 35 Paragraph 2 of the Ordinance.

Article 24 (Follow-up Management)

An invested company as prescribed in Article 36 Paragraph 2 of the Ordinance shall submit the pledge to make investment in the form of Annex 12 and business (investment) proposal in the form of Annex 13 in order to receive subsidies.

Article 25 (Settlement of Subsidy)

1. ① The Governor shall review the business plan and qualifications of the applicant upon receiving the application for subsidy grant pursuant to Article 15 or Article 21, solicit opinion from the mayor or county governor, and make a decision on subsidy provision after deliberation by the Committee. <Amended on November 30, 2007>
2. ② The Governor shall notify the mayor, county governor, or applicant without delay, if he or she decided to provide the subsidy in accordance with Paragraph 1 hereof.
3. ③ A recipient of subsidies under the provisions of the Ordinance or Regulation shall submit to the mayor or county governor the statement of account in the form of Annex 14 with regard to the execution of the subsidy of the pertinent year by the end of January of the following year without delay, and the mayor or county governor shall submit the statement to the Governor.
4. ④ The Governor shall review the settlement of subsidy grant upon receiving the statement of account pursuant to Paragraph 3 hereof.

Article 26 (Limitation of the Subsidy Use)

The recipient of the subsidy pursuant to Article 15 or Article 22 shall serve the duty to carry on the business for which the bonus was provided, in accordance with the terms of subsidy grant and at the disposal of the Governor under laws and regulations.

Article 27 (Change in Choice of Business)

A company that has received subsidy in accordance with Article 36 Paragraph 3 of the Ordinance shall maintain the business described in the business proposal submitted to apply for the subsidy for at least ten years to change its choice of business.

Article 28 (Bonus Payment)

1. ① Any company that has attracted investment in accordance with Article 38 of the Ordinance shall submit to the Governor an application to receive bonus for investment promotion in the form of Annex 15 and Annex 16 by the end of March of the year following the actual investment. Bonus payment and the amount of bonus shall be determined by the Committee based on the contribution, performance, and payment
2. ② Standards of bonus payment for investment promotion pursuant to Paragraph 1 hereof shall be prescribed in Annexed Table 2, and if two or more individuals (including organizations and corporations) are to apply for the subsidy, one of the two with larger share of contribution to investment promotion shall submit the application, provided that both of them shall notify each of their share of contribution in Annexed Table 3 of the application form and sign the application.
3. ③ Bonus shall be paid within the budget of the pertinent year, provided that it may be provided in January of the following year through deliberation by the Committee in case where it is unable to pay part or all of bonus within the year due to shortage of budget.
4. ④ If the beneficiary of the bonus pursuant to Paragraph 2 hereof is found to have received the bonus through false means or methods, the bonus shall be reimbursed and the beneficiary may be pressed with charges depending on the gravity of the situation.

Article 29 (Standards of Bonus Payment)

1. ① Bonus will be provided for investment worth over KRW 5 billion (according to investment agreement). The amount shall be determined in accordance with the investment of the pertinent year (hereinafter referred to as "actual investment"), and previous investment shall be taken into account in case where actual investment has been made for more than a year. <Amended on April 10, 2009>
2. ② Bonus may be provided for up to four years after the initial date of investment if the company continues to make investment from land purchase to factory establishment or make reinvestment for business expansion.

Article 30 (Special Treatment for Public Officials)

1. ① A public official deemed to have made significant contribution to investment promotion may receive additional points in accordance with the performance-based point system.
2. ② The Chungcheongbuk-do Investment Promotion Committee may recommend to the Governor special promotion for a public official deemed to have made significant contribution to investment promotion.

Article 31 (Application of Other Ordinances or Regulations)

Other issues that are not stipulated with regard to allocation of fund or subsidy shall be subject to the provisions of the Chungcheongbuk-do Ordinance on Subsidy Management, Enforcement Regulation on Subsidy Management, or Chungcheongbuk-do Regulation on Finance and Accounting.

Article 1 (Date of enforcement)

This Ordinance shall be effective from the date of its promulgation.

Article 2 (Abolition of Ordinance)

Chungcheongbuk-do Ordinance on Foreign Investment Promotion Office and Establishment and Management of the Foreign Investment Promotion Committee shall be abolished.

Article 1 (Date of enforcement)

This Ordinance shall be effective from the date of its promulgation.

Article 2 (Interim Measurers)

In the case of special support for a company that makes large investment in accordance with Article 22, the date of enforcement of this Regulation shall be considered as the date of investment agreement.