GWANGJU < invest Korea

Article 1 (Purpose)

This Regulation shall stipulate issues associated with the Gwangju Metropolitan City Ordinance on Investment Promotion (hereinafter referred to as the "Ordinance") and cases required to enforce the Ordinance. < Amended on May 15, 2012, and June 1, 2015>

Article 2 (Definition)

1. ①"The Business Service Industry" prescribed in Article 2-5 of the Gwangju Metropolitan City Ordinance on Investment Promotion (hereinafter referred to as "Ordinance") shall refer to the businesses in accordance with the business service sector specified by the Korea Standard Industrial Classification, logistics facilities under Article 2-1 of the Act on the Development and Management of Logistics Facilities and five-star hotel business prescribed in the Tourism Promotion Act. < Amended on January 1, 2009, May 3, 2010, May 13, 2011, June 1, 2015, July 6, 2020, August 7, 2023>
2. ② "Existing Invested Enterprises" stipulated in Article 2-11 of the Ordinance shall refer to companies that have operated business in the City for more than three years after the initial date of business < Established on January 1, 2009 > < Amended on May 15, 2012, June 1, 2015>

Article 3 (Investment Promotion Committee)

1. ① The Chairman stated in Article 5 of the Ordinance shall represent the Committee and govern the general affairs of the Committee. If the Chairman is not able to perform his duty, the Vice Chairman shall substitute for the Chairman.<
2. ② 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.< Amended on July 6, 2020>
3. ③ In case of emergency or for inevitable reasons, the Chairman may determine or deliberate on proposed bills by letter instead of convening a meeting.
4. ④ The Director of the Committee shall document and provide minutes on the following items, and inform the Chairman whenever the minutes are recorded. < Amended on June, 1, 2015 and July 6, 2020 .>
   1. 1. Date and venue of the meeting
   2. 2. List of Committee members present and participants
   3. 3. Issues up for discussion and progress of the meeting
   4. 4. Talking points of members or participants
   5. 5. Other important issues < Amended on June 1, 2015>
5. ⑤ The Chairman may have related public officials or experts attend the meeting or submit relevant documents, if necessary for the issues deliberated on the Committee.
6. ⑥ Other requirements for management of the Committee that are not prescribed in this Regulation shall be severally determined by the Chairman following the deliberation by the Committee.< Amended on June, 1, 2015>

Article 4 (Advisory Panel for Investment Promotion)

1. ① Gwangju Metropolitan City Investment Promotion Advisory Panel (hereinafter referred to as the "Advisory Penal") prescribed in Article 8 of the Ordinance shall be composed of 20 or fewer members, who shall be nominated by the Mayor and fall under the any of the following categories: In such case, the number of a certain gender of the Advisory Penal nominated on the Mayor's recommendation shall not exceed 60 percent of the total members < Amended on June 1,2015, January 1, 2017>
   1. 1. Expert in investment groups
   2. 2. Professors including full-time lecturers in the field of investment promotion
   3. 3. Executives of an investment promotion agency or investment promotion organization < Amended on May 15, 2012>
   4. 4. Others recognized for vast experience or expertise in investment promotion < Amended on June 1, 2015>
2. ② The Advisory Panel shall follow the City Mayor's advice about investment promotion, engage in investment promotion activities, and collect and provide relevant information. < Amended on June, 1, 2015>

Article 5 (Honorary Overseas Investment Promotion Consultant)

1. ① The Mayor shall nominate and appoint 25 or fewer Honorary Overseas Investment Promotion Advisory Panel in accordance with Article 9 of the Ordinance, who falls under any of the following categories hereunder; In such case, the number of a certain gender of the Advisory Panel nominated on the Mayor's recommendation shall not exceed 60 percent of the total members. <Amended on May 15, 2012 June 1,2015, January 1,2017>
   1. 1. Overseas Koreans working in major cities worldwide in strategic industries of Gwangju
   2. 2. Professors, researchers working overseas
   3. 3. Senior members of Overseas Gwangju Hometown Associations
   4. 4. Foreign businessmen
   5. 5. Others working overseas who are recognized for vast experience or expertise in investment promotion < Amended on June 1, 2015>
2. ② The Honorary Overseas Investment Promotion Advisory Panel shall follow the City Mayor's advice about investment promotion, engage in investment promotion activities, and collect and provide relevant information. < Amended on May 15, 2012, June, 1, 2015>
3. ③ Other issues associated with Overseas Investment Promotion Consultants shall be severally determined by the Mayor. < Amended on May 15, 2012, June 1, 2015>

Article 6 (Organization of Working Level Consultative Council with Relevant Parties)

1. ① The Working Level Consultative Council prescribed in Article 10 of the Ordinance shall consist of 25 or fewer members from regional investment promotion agencies. The Council shall support the following activities: < Amended on May 15, 2012>
   1. 1. Collection, analysis, and exchange of information on investment
   2. 2 Investment promotion activities
   3. 3. Management of organic cooperation with relevant investment promotion agencies, etc. < Amended on May 15, 2012>
2. ② The Working Level Consultative Council shall include a Chairman, Vice Chairman, and Director. The Manager of the City's Bureau of Investment Promotion shall be the Chairman, and the Vice Chairman and Director shall be nominated among the members of the Working Level Consultative Council. In such case, the number of a certain gender of the council nominated on recommendation shall not exceed 60 percent of the total members. < Amended on August 5, 2010 and July 27, 2011, September 1, 2014, August 1, 2016, July 24, 2018, January 1, 2020, November 4, 2022. >t;

Article 7 (Eligibility for Subsidy Grant)

1. ① “A company severally prescribed in the Enforcement Regulations" in Article 18.1.4 of the Ordinance shall fall on any of the following items: <Amended on July 7, 2020>
   1. 1.Venture companies prescribed in Article 2 of the Special Act on Venture Company Development
   2. 2. Companies certified with Inno-Biz by the Small Business Administration in compliance with Article 15 of the SME Technology Innovation Support Act< Amended on July 6, 2020.>
   3. 3. Companies in the photonics industry prescribed in Article 2 of the Gwangju Metropolitan City Ordinance on Photonics Industry Development<Amended on July 6, 2020>
   4. 4. .Parts and materials manufacturers and production equipment manufacturers prescribed in Article 2 of the Special Act on Development of Parts and Materials Enterprises<Amended on July 6, 2020.>
   5. 5. Industrial design companies prescribed in Article 2 of the Industrial Design Promotion Act<Amended on July 6, 2020>
   6. 6. Nano technology companies prescribed in Article 2 of the Nano Technology Development Promotion Act<Amended on July 6, 2020>
   7. 7. .Deleted on May 13, 2011>
   8. 8. A company whose business category is specifically deemed necessary by the Mayor as with energy industry prescribed in Article 2 of Energy Act, in which case the company herein shall be authorized after deliberation by the Investment Promotion Committee. <Amended on June 1, 2015>
2. ② A company separately prescribed in the Enforcement Regulations in Article 18.1.5 of the Ordinance shall refer to companies in the cultural industry in accordance with Article 2 of the Framework Act on the Promotion of Cultural Industries and companies managing the information and communication industry in accordance with Article 6-3 of the Enforcement Decree of the Industrial Cluster Development and Factory Establishment Act.< Established on May 13, 2011><Amended on June 1, 2015 and July 6, 2020.>

Article 8 (Site Location Subsidy)

1. ①Site location subsidy stated in Article 19 of the Ordinance may be provided to cover up to 30 percent of the land purchasing price. However, if the company has purchased land from the industrial complex that had been allotted, the price of the present land allotment in the jurisdiction of Gwangju Metropolitan City shall be applied based on the date of application. If there is no land for allotment in the industrial complex, the price of the recently allotted land based on the application shall be applied. < established on May 3, 2010>,<Amended on May 13, 2011 and May 15, 2012, and August 7, 2023>
2. ② Those who want to receive the subsidy shall submit the site subsidy application form according to the attached table No.1 to the mayor within 2 years since the initial business start date. <Amended on May 3, 2010, May 13, 2011, May 15, 2012 >
3. ③Notwithstanding the aforementioned paragraph ① and ② hereof, corporate investors that receive government financial support shall follow the government financial support to local governments for attracting investors (hereinafter “the government financial support”). <Amended on May 15, 2012 and August 1, 2013, June 1, 2015>
4. ④ Deleted <2023.8.7.>

Article 9 (Equipment Investment Support Subsidy)

1. ① The equipment investment subsidy in accordance with Article 20 of the Ordinance could be provided when the investment amount exceeds KRW 2 billion. In this case, the subsidy may be provided up to 14/100 for the amount exceeding KRW 1 billion excluding the land purchase price. However, the support could be provided within 2/100 as the equipment investment subsidy to a company operating in any of the following industries. < Amended on April 15, 2009, May 13, 2011, May 15, 2012, August 1, 2016, July 6, 2020, August 7, 2023 >
   1. 1. A company belongs to Article 10 of Gwangju Metropolitan Government Ordinance on Fostering and Supporting the Automotive Industry < Established on August 7, 2023 >
   2. 2. A company that operates in the ICT industry in accordance with Article 6-3 of Enforcement Decree of Act on the Industry Cluster and Factory Establishment < Established on August 7, 2023.>
   3. 3. A company that operates in the energy industry in accordance with Article 2 of Gwangju Metropolitan Government Ordinance on Creation of Energy Valley < Established on August 7, 2023>
   4. 4. A company that operates in the semiconductor industry in accordance with the Korea Standard Industry Classification as notified by the Statistics Korea < Established on August 7, 2023>
2. ② In the case where a company newly establishes or enlarges a business in call center or telemarketing, the company shall receive up to KRW 200 million within 30 percent of the equipment and installation cost. For the rental cost, the company shall be financed up to KRW 300 million within 50 percent of one year’s of rental cost.< Amended on May 3, 2010, May 13, 2011 and May 15, 2012>
3. ③ When supporting the subsidy in accordance with Article 18.2.4 of the Ordinance, it shall be within 14/100 for the excess amount of KRW 7.5 billion. < Amended on May 15, 2012, July 6, 2020, August 7, 2023 >
4. ④ When supporting the subsidy in accordance with Article 18.2.5 of the Ordinance, it shall be within 14/100 for the excess amount of KRW 500 million. <Amended on May 15, 2012, July 6, 2020, August 7, 2023>
5. ⑤ Those who want to receive the subsidy shall submit the site subsidy application form according to the attached table No.1 to the mayor within 2 years since the initial business start date. <Amended on May 3, 2010, May 13, 2011, May 15, 2012 >
6. ⑥ Notwithstanding the aforementioned paragraph ① and ② hereof, corporate investors that receive government financial support shall follow the government financial support to local governments for attracting investors (hereinafter “the government financial support”) <Amended on April 15, 2009, May 3, 2010, May 13, 2011, May 15, 2012 and August 1, 2013, June 1, 2015 >

Article 10 (Employment Subsidy)

1. ①Employment subsidy stated in Article 21 of the Act shall be offered to a company registered as a foreign-invested company in compliance with the provision of Article 21-1 of the Foreign Investment Promotion Act (hereinafter referred to as the "Act") or companies with a call center or telemarketing service center that build new facilities or factories. In such case, the Mayor may provide a monthly per capita subsidy of up to KRW 600,000 for each employee for up to 12 months, in the event when the abovementioned companies herein hire more than 20 full-time employees who reside in the City district. However, the companies belong to the cultural industry according to Article 7-2, and those in the ICT industry according to Article 6-3 of the Enforcement Decree of Act on Industry Cluster and Factory Establishment are eligible to apply for the subsidy when the number of full-time new employees exceed 10. < Amended on April 15, 2009, May 3, 2010, May 13, 2011, May 15, 2012, June 1, 2015, July 6, 2020 >
2. ② Deleted on May 13, 2011
3. ③ Deleted on May 13, 2011
4. ④ Anyone who wishes to receive employment subsidy shall submit to the Mayor an application in the form of Annex 3 or Annex 3-1 within two years of the initial business day. <Amended on May 13, 2011>
5. ⑤The enterprise may apply for additional support after the deliberation from the Investment Promotion Committee within the application period, if the number of full-time employees has increased after receiving employment subsidy.<Amended on May 13, 2011>
6. ⑥ Provided that a logistics company with more than 150 full-time employees builds up a local distribution center may be offered the employment subsidy hereof, in which case the Mayor may provide a monthly per capita cash grants up to KRW 50,000 for every 20 newly employed full-time workers for up to four months, which is prevented from being repaid the financial benefits in combination with other types of subsidies. < Established on January 1, 2017 >

Article 11 (Education and Training Subsidy)

1. ① The Mayor may offer a monthly education and training subsidy, stipulated in Article 22 of the Ordinance, of up to KRW 600,000 per capita for up to six months, to an enterprise that newly hires 20 or more employees and train them. <Amended on April 15, 2009, May 3, 2010 and May 15, 2012>
2. ②The Mayor may offer a monthly subsidy of up to KRW 600,000 per capita for up to six months under Article 18.2.4 of the Ordinance, if the enterprise hires more than 15 new employees and train them. .<Amended on April 15, 2009, May 3, 2010, May 15, 2012, and July 6, 2020>
3. ③ The Mayor may offer a monthly subsidy of up to KRW 600,000 per capita for up to six months under Article 18.2.5 of the Ordinance, if the enterprise hires more than 10 new employees and train them.<Amended on April 15, 2009, May 3, 2010, May 15, 2012, and July 6, 2020.>
4. ④Education and training institutes shall fall under any of the following categories and training methods shall include in-house education, commissioned education, remote education and online education. <Amended on May 13, 2011>
   1. 1. Education and training facilities set up by national, municipal, public organizations (which specifically include Human Resources Development Service of Korea, state-funded agencies, Korea Employment Promotion Agency for the Disabled, Korea Workers' Compensation and Welfare Service, the Korean Chamber of Commerce and Industry) under Article 2-3 of the Act on the Development of Workplace Skills of Workers.< Amended on June 1, 2015>
   2. 2. Vocational training facilities or educational institutes of college levels
   3. 3. Other institutes recognized by the Mayor < Amended on June 1, 2015>
5. ⑤ Anyone who wishes to receive education and training subsidy shall submit to the Mayor an application in the form of Annex 4 or 4.1 within two years of the initial business day. <Amended on May 13, 2011 and May 15, 2012>
6. ⑥ Notwithstanding the aforementioned paragraph ① to ⑤ herein, corporate investors that receive government financial support and have been relocated, newly established and enlarged shall follow the government financial support. <Amended on May 15, 2012, June 1, 2015>

Article 12 (Regional Elective Subsidy)

1. ① A foreign-invested company that makes foreign investment worth over USD 1 million in accordance with Article 23 of the Ordinance shall be eligible for the regional elective subsidy, which will be offered within 10 percent of the total sum of foreign investment with up to KRW 200 million for each company. However, this subsidy shall be provided only once per company.<Amended on May 15, 2012>, < New condition established on August 7, 2023>
2. ② Anyone who wishes to receive regional elective subsidy shall submit to the Mayor an application in the form of Annex 5 within two years of the initial business day.

Article 13 (Subsidies for Consulting Services)

1. ① The Mayor may provide subsidy for consulting services for the investment consulting in accordance with Article 24 of the Ordinance to finance 5 percent of the total sum of investment with up to KRW 100 million for each company..<Amended on May 15, 2012>
2. ② Consulting companies shall be business and management consulting service providers prescribed in the Korean Standard Industrial Classification..<Amended on May 13, 2011>
3. ③ Consulting services shall be directly associated with establishment, relocation of invested enterprises, or factory establishment including business feasibility test, market analysis, business proposals.<개정 2011.5.13>
4. ④ Anyone who wishes to receive subsidy for consulting services shall submit to the Mayor an application in the form of Annex 6 or Annex 6-1 within two years of the initial business day.

Article 13-2 (Subsidies for employee relocation)

1. ①The Mayor may provide cash grants for invested companies with more than 50 employees to transfer into the given business site. In such case, a per capita subsidy of up to KRW 600,000 for employees of single person household or subsidies up to KRW 2 million for employees with family members who move and reside from extraterritorial jurisdiction into the provincial district for more than a year may be offered. Subsidy payments shall be determined on the basis of residence history specified onto the resident registration record.< Established on January 1, 2017 >
2. ② Anyone who wishes to receive subsidy shall submit to the Mayor an application in the form of Annex 7 within two years of the initial business day.< Established on August 7, 2023.>

Article 14 (Special Support for Large Corporate Investors)

1. ① The Mayor may provide special financial support to large corporate investors under Article 26 of the Ordinance. Investment eligible for the special financial assistance are stated as follows, provided that various subsidies prescribed in Article 8 to Article 13 and other financial support shall not be provided with other subsidies.< Amended on June 1, 2015, August 7, 2023 >
   1. 1. Investment in factory sites or facilities <Amended on June 1, 2015>
   2. 2. Infrastructure building cost for outside the factories and facilities in a massive investment
2. ② Aside from subsidies stipulated by the aforementioned paragraph ① herein, an extra financial support which covers factory plant mortgage loan rates for large corporate investors maybe provided by the Mayor, if deemed necessary. < Established on August 1, 2016 >
3. ③ If a large investing company wishes to receive special support, it shall submit to the Mayor an application in the form of Annex 8 and other required evidential documents within two years of the initial business day. < Amended on August 1, 2016, August 7, 2023. >

Article 15 (Improvement of Living Conditions for Foreign Nationals)

Anyone who wishes to receive subsidy to improve living conditions for foreign nationals in compliance with Article 28 of the Ordinance shall submit to the Mayor an application in the form of Annex 9 within two years of the contract to purchase or lease land and buildings has been signed.< Amended on August 7, 2023 >

Article 16 (Deliberation on Subsidy Provision)

1. ① The Mayor shall determine whether to provide the subsidy after deliberation on the business plan and eligibility of an enterprise that has submitted an application for subsidy grant.
2. ② The amount of subsidy and the timing of execution of subsidies shall be determined after deliberation by the Gwangju Metropolitan City Investment Promotion Committee.

Article 17 (Follow-up Management of Invested Enterprises)

1. ① The Mayor may be informed about a subsidy recipient on the following items under Article 30 of the Ordinance:<Amended on June 1, 2015>
   1. 1. Progress of the business
   2. 2. Whether it is subject to modification, cancelation, or redemption of subsidies
   3. 3. Other issues deemed necessary to achieve the goal of the business <Amended on June 1, 2015>
2. ② The Mayor may fully or partially modify or cancel the provision of subsidies due to changes in circumstances, even after the provision has already been confirmed..<Amended on July 6, 2020>
3. ③ The Mayor may have related public officials or experts submit relevant documents or examine the case, if necessary for the follow-up management of subsidy recipients

Article 18 (Provision of Incentive, etc.)

1. ①Criteria on incentive provision as stipulated in Article 32.1 of the Ordinance except for incentive to public officials shall be as follows:
   1. 1. In the case of inducing foreign capital investment worth between USD 3 million and USD 10 million on an annual basis or domestic capital investment worth between KRW 3 billion and KRW 10 billion: incentive worth less than 15/10,000 of investment. <Amended on April 15, 2009 and August 1, 2013>
   2. 2. In the case of inducing foreign capital investment worth between USD 10 million and USD 30 million on an annual basis or domestic capital investment worth between KRW 10 billion and KRW 30 billion: incentive worth less than 13/10,000 of investment. <Amended on August 1, 2013>
   3. 3. In the case of inducing foreign capital investment worth between USD 30 million and USD 50 million on an annual basis or domestic capital investment worth between KRW 30 billion and KRW 50 billion: incentive worth less than 11/10,000 of investment. <Amended on August 1, 2013>
   4. 4. In the case of inducing foreign capital investment worth between USD 50 million and USD 100 million on an annual basis or domestic capital investment worth between KRW 50 billion and KRW 100 billion: incentive worth less than 9/10,000 of investment.<Amended on August 1, 2013>
   5. 5. In the case of inducing foreign capital investment worth more than USD 100 million on an annual basis or domestic capital investment worth more than KRW 100 billion: incentive worth less than 7/10,000 of investment.<Amended on August 1, 2013>
2. ② Criteria on special promotion, pay raise, and incentive provision for public officials who induced investment in compliance with Article 32.2 of the Ordinance shall be as follows, provided that incentive to be provided shall not exceed KRW 20 million. < Amended on June 1, 2015>
   1. 1. 1. In the case of inducing foreign capital investment worth between USD 3 million and USD 10 million on an annual basis or domestic capital investment worth between KRW 3 billion and KRW 10 billion: incentive worth less than 8/10,000 of investment.< Amended on April 15, 2009 and August 1, 2013>
   2. 2. In the case of inducing foreign capital investment worth between USD 10 million and USD 30 million on an annual basis or domestic capital investment worth between KRW 10 billion and KRW 30 billion: incentive worth less than 6/10,000 of investment. < Amended on August 1, 2013>
   3. 3. In the case of inducing foreign capital investment worth between USD 30 million and USD 50 million on an annual basis or domestic capital investment worth between KRW 30 billion and KRW 50 billion: special pay raise and incentive worth less than 4/10,000 of investment.< ;Amended on August 1, 2013>
   4. 4. In the case of inducing foreign capital investment worth between USD 50 million and USD 100 million on an annual basis or domestic capital investment worth between KRW 50 billion and KRW 100 billion: special promotion and incentive worth less than 3/10,000 of investment. < Amended on August 1, 2013>
   5. 5. In the case of inducing foreign capital investment worth more than USD 100 million on an annual basis or domestic capital investment worth more than KRW 100 billion: special promotion and incentive worth less than 2/10,000 of investment.< ;Amended on August 1, 2013>
3. ③ Criteria and procedures for incentive provision shall be severally determined by the Mayor.

Article 19 (Application of Other Regulations)

Provisions of the Enforcement Regulations of Gwangju Metropolitan City Ordinance on Subsidy Management and the regulations of the government financial support shall be applied to issues that are not stipulated in this Regulation with regard to execution or settlement of subsidies.<Amended on August 1, 2013>

1. ① (Date of Enforcement) This Regulation shall be effective from the date of its promulgation.
2. ② (Interim Measure for Invested Enterprise) Provision of subsidies to corporate investors that have already launched business before the enforcement of this Regulation shall comply with the provisions of previous regulations.

Article 1 (Date of Enforcement)

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

Article 2 (Interim Measure for Invested Enterprise)

This regulation shall be applied to subsidies for logistics facilities under Article 2 among companies that have been attracted before the establishment of the regulation.

Article 1 (Date of Enforcement)

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

Article 2 (Applicable Example)

The government financial support shall be applied to corporate investors that began business from January 12, 2011 in accordance with “the government financial support to local governments for attracting investors”(Ministry of Knowledge Economy Notification No. 2011-4).

Article 1 (Date of Enforcement)

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

Article 2 (Interim Measure for Invested Enterprise)

Provision of subsidies to corporate investors that have already launched business before the enforcement of this Regulation shall comply with the provisions of previous regulations.