DAEGU < invest Korea

Article 1 (Purpose)

Article 2 (Term of Investment Attraction Officer)

Article 3 (Provision of Industrial Sites)

1. 1. A foreign-invested company pursuant to Article 2(1)6 of the Foreign Investment Promotion Act;
2. 2. A domestic company engaged in any of the businesses listed in Article 121-2(1)1 of the Restriction of Special Taxation Act;
3. 3. A domestic company engaged in a cutting-edge technology business prescribed by the Minister of Trade, Industry and Energy pursuant to Article 5(1) of the Industrial Development Act;
4. 4. A domestic company engaged in a material, components or equipment business pursuant to Article 2(1) and Article 2(2) of the Act on Special Measures for the Promotion of Specialized Enterprises, etc. for Materials and Components;
5. 5. A domestic company engaged in a cultural business pursuant to Article 2(1) of the Framework Act on the Promotion of Cultural Industries;
6. 6. A domestic company engaged in a software business pursuant to Article 2(2) of the Software Industry Promotion Act;
7. 7. A reshoring company under Article 2(4) of the Act on Assistance to Korean Off-shore Enterprises in Repatriation; or
8. 8. Any other company deemed necessary by the Mayor.

Article 4 (Measures to Achieve the Purpose of Support)

1. 1. Obtaining the prior approval of the Mayor before converting its business category at the time of the application into another business category or changing its original investment project plan;
2. 2. Commencing the construction work within one (1) year after the date on which the relevant land becomes available, provided that the aforementioned period may be extended once for an additional period of up to one (1) year with the prior approval of the Mayor;
3. 3. The building area shall exceed the area prescribed by the Factory Site Standard Notice of the Ministry of Trade, Industry and Energy; and
4. 4. The land for which a purchase contract is executed cannot be disposed of within five (5) years after the business commencement date, and when disposed of within ten (10) years after the business commencement date, the company shall return the amount of the sale proceeds corresponding to the percentage of subsidization, provided that if the disposal restriction period is differently provided for in any other law, such other law shall prevail.

Article 5 (Subsidization of Facility Costs)

1. (1) The Mayor of Daegu Metropolitan City (hereinafter referred to as the “Mayor) shall determine whether to provide support and the size of such support through the Business Attraction Committee of Daegu Metropolitan City (hereinafter referred to as the “BAC”) when it intends to provide subsidies under Article 14 of the Ordinance, and the detailed support criteria shall be as stated in Table 1.
2. (2) A company that wants to receive subsidies, including facility costs, under provisions stipulated in the paragraph (1) herein mentioned shall implement its investment in accordance with the investment project plan, and shall submit an application for subsidies in form no. 1 attached hereto to the Mayor.
3. (3) Notwithstanding paragraphs (1) and (2) above, companies eligible for national funds support shall be subject to official notices issued by the Ministry of Trade, Industry and Energy, including the National Fiscal Fund Support Regulations for Local Governments for Attraction of Local Investment Companies.

Article 6 (Special Support for Large-scale Investment Companies)

1. (1) The large-scale investment companies eligible for special support under Article 15(2) of the Ordinance shall mean any of the following:
   1. 1. A company with investments that amount to at least KRW 50 billion or at least 300 full-time employees;
   2. 2. A company that newly constructs or expands factories or other facilities to run a business under Article 121-1(1)1 of the Restriction of Special Taxation Act with investments that amount to at least KRW 10 billion;
   3. 3. A company that newly constructs or expands factories or other facilities to run a cutting-edge technology or product business under Article 5 of the Industrial Development Act with investments that amount to at least KRW 10 billion;
   4. 4. A company that newly constructs or expands factories or other facilities to produce materials, components or equipment prescribed by the Presidential Decree under Article 2(1) and Article 2(2) of the Act on Special Measures for the Promotion of Specialized Enterprises, etc. for Materials and Components with investments that amount to at least KRW 10 billion;
   5. 5. A company that newly constructs or expands a place of business to run a cultural business under Article 2(1) of the Framework Act on the Promotion of Cultural Industries or Article 2(2) of the Software Industry Promotion Act with investments that amount to at least KRW 5 billion or at least 30 full-time employees;
   6. 6. A company that newly constructs or expands a company-affiliated research institute under Article 14-2 of the Basic Research Promotion and Technology Development Support Act with investments that amount to at least KRW 5 billion or at least 10 full-time research-dedicated personnel with a bachelor’s or master’s degree in academic field related to the relevant business and with at least three (3) years of research experience; or
   7. 7. Any other company deemed in need of special support by the Mayor and has significant effects on the local economy.
   8. (2) A company that wants to receive special support under Article 15 of the Ordinance shall implement its investment and submit an application for subsidies in form attached hereto as Exhibit No. 1

Article 7 (Provision of Employment Subsidies)

1. 1) The employment subsidies or employee training subsidies under Article 16(1) of the Ordinance shall be paid in the event that the number of full-time employees newly hired within three (3) years after the relevant company newly moves into the Territory or is newly established and registered exceeds twenty (20); provided, however, that the above threshold number of new jobs shall reduce to ten (10) in case that the relevant company is a company-affiliated research institute under Article 14-2 of the Basic Research Promotion and Technology Development Support Act.
2. (2) Provided that the requirement under paragraph (1) hereinabove is met, the Mayor may provide an employment subsidy (or) hiring incentives with up to KRW 1,000,000 in a month per excess person for up to six (6) months.
3. (3) Provided that new employees in excess of the number under paragraph (1) hereinabove are employed and trained, the Mayor may provide an employee training subsidy of up to KRW 1,000,000 in a month per excess person for up to six (6) months.
4. (4) The municipal employment creation incentive under Article 16(2) of the Ordinance shall be provided additionally for up to two (2) years upon the application of the relevant company after the employment creation incentive program of the Ministry of Employment and Labor is finished.
5. (5) A company that wishes to receive subsidies under paragraph (2) and (3) shall submit an application for subsidies in form attached hereto as Exhibit No. 1 within three (3) years after the business commencement date (or factory registration date) to the Mayor, and a company that wishes to receive an employment creation incentive under paragraph (4) hereinabove shall submit an application for an employment creation incentive for a reshoring company in form attached hereto as Exhibit No. 2 within six (6) months after the end of the employment creation incentive program of the Ministry of Employment and Labor.

Article 8 (Support for Employee Accommodation)

1. (1) Support for employee accommodation under Article 17 of the Ordinance shall be provided to for reshoring companies and non-Daegu companies with 50 or more full-time employees.
2. (2) provided that a company eligible for support under paragraph (1) hereinabove newly constructs or leases an employee accommodation, the company may apply for a subsidy of up to KRW 1 billion and up to 30% of the total construction or lease costs, and the period of subsidization of the lease costs for the company shall be maximum five (5) years from the business commencement date.
3. (3)A company that wishes to receive subsidies under paragraph (2) hereinabove shall submit an application for subsidization of the construction and lease costs of the employee accommodation in form attached hereto as Exhibit No. 3 within three (3) years after the business commencement date.
4. (4) A company that receives subsidies for construction costs under paragraph (2) hereinabove shall operate the relevant premises as an employee accommodation for at least five (5) years from the move-in date.

Article 9 (Subsidization of Costs and Expenses)

1. (1) Subsidies to conduct feasibility assessment research under Article 18(2) of the Ordinance shall be provided for up to 50% of the costs for the research work and up to KRW 500 million per company.
2. (2) An investor or investment company who wishes to receive subsidies for the feasibility study expenses pursuant to paragraph (1) shall submit an application for subsidization of feasibility study expenses in form attached hereto as Exhibit No. 4 to the Mayor within one (1) year from the business commencement date.

Article 10 (Payment of Reward for Investment Attraction)

1. (1) A reward for investment attraction under Article 24 of the Ordinance (hereinafter referred to as the "reward") shall refer to an amount of up to one (1) percent of the relevant investment amount attracted for individuals, legal entities and groups, and an amount of up to KRW 50 million for public servants.
2. (2) The payment targets and criteria of the reward under paragraph (1) hereinabove shall be as specified in Table 2
3. (3) A public servant with a track record of investment attraction under paragraph (2) may receive preferential treatment in personnel management, including, but not limited to, assignment to a desired department, giving weights in promotion screenings, increase in the pay step or special promotion. In such case, the public servant that received preferential treatment in personnel management shall receive a reduced reward in accordance with the deliberation by the BAC.

Article 11 (Application for and Payment of Reward))

1. (1) The standard amount of a reward shall be the amount of actual investment made by the relevant company attracted, and the period of the payment of a reward shall be three (3) years after the completion of investment.
2. (2) A person who wishes to apply for a reward shall submit an application for payment of a reward in form attached hereto as Exhibit No. 5 to the Mayor.

Article 12 (Exceptions to Payment of Reward)