Application

Application for Cash Grants

Application Documents

A foreign investor who intends to receive a cash grant submit documents, such as a cash grant application form and investment plans to the Ministry of Trade, Industry and Energy.

Download Application Form

Review of Application

An evaluation committee consisting —including officials from the Ministry of Trade, Industry and Energy and foreign investment, technology, financial, and industry experts —reviews the application and eligibility for the cash grant. The level of technology, technology transfer effects, the size of job creation, overlap with domestic investment (industrial evaluation), impact to local and national economy and viability of investment (financial evaluation) are reviewed.

Evaluation of Cash Grant Limits

A cash grant limit calculation committee consisting of negotiating parties and two or more private experts reviews the possibility of investment outside of Korea, job creation effects and quality of employment, the appropriateness of locations, and potential effects on the regional and national economy. The committee then calculates a limit and submits a report to the Ministry of Trade, Industry and Energy. A cash grant is negotiated between a negotiator and a foreign investor within the limit decided by the committee.

Negotiation and Decision on Cash Grant Amounts

A cash grant is negotiated by the Ministry of Trade, Industry and Energy and the Minister of Economy and Finance as well as relevant local governments. A decision is made after deliberation and resolution by the Foreign Investment Committee, and a contract is concluded.

In cases where a cash grant is less than KRW 1 billion, excluding location support, deliberation, resolution, and decision may be completed by the Foreign Investment Working Committee.

- Processing period : Cash grant decisions must be made within 60 days from the receipt of application, unless there is any special reason. The processing period may be extended up to an additional 30 days.

Payment Method

A cash grant may be paid in a lump sum within a year from the date of contract conclusion or in up to ten installments within five years from the date of contract conclusion.
Applicants must open separate accounts and perform accounting for their cash grants, clearly distinguishing them from other revenues and expenditures.
In the case of installments, applicants may submit an application form that includes scale, purpose, and details of cash grants of the year. Cash grants are then paid after evaluating the execution of investment expenditure plans or cash grants, and the amount and time of payment may be adjusted.

Payment Method : Category, Requirements for Tax Reductions or Exemptions
Category	Payment Method
Land purchase costs	Paid in installments (middle or final payment) after concluding a contract for land purchase
Land rental fees	Paid in accordance with a lease contract concluded between the applicant and the owner of the leased land or its entrusted manager
Construction costs, capital goods and research equipment purchase costs, infrastructure (electricity and telecommunication facilities) installation fees	Paid after evaluating the execution of investment expenditure plans
Education and training subsidies and employment subsidies	Paid after evaluating the execution of employment plans within the investment period
Others	Paid in accordance with the Subsidy Management Act and the Local Finance Act.

Conclusion of Contract

Once a decision has been made to offer a cash grant, contracting parties, including the Minister of Trade, Industry and Energy, the head of the local government, and the applicant conclude a contract concerning the period and payment method of the cash grant, as well as the acquisition and lease of the leased land, etc.

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