JEOLLABUK-DO < invest Korea

Article 1 (Purpose)

Article 2 (Committee Operation, Etc.)

1. ① The chairs of the Jeollabuk-do Investment Deliberation Committee (hereafter referred to as “the Committee”) and the Tourism Business Investment Promotion Committee (hereafter referred to as “the Tourism Committee”) shall represent each respective committee, and supervise the committee’s affairs.
2. ② To convene a meeting, the chair shall notify each committee member in written form the date, time, location, purpose, etc., of the meeting no later than 7 days in advance. However, this shall not apply to cases of emergency.
3. ③ Deliberations at each meeting shall begin when more than half of registered members of the committee is present, and decisions shall be made by majority vote.
4. ④ When it is necessary for the smooth operation of a meeting, the chair may invite a civil servant or expert in a related field to the meeting to seek their opinion.
5. ⑤ When the chair deems it necessary, the decision may be made in written form.

Article 3 (Subsidies for Domestic Companies Investing in the Province)

1. ① Of the subsides as stipulated in Article 7.1 and Article 7.3 of the Jeollabuk-do Ordinance on Promotion of Attracting Companies and Investment, subsidies for the factory or headquarters or research institute of a company that individually relocates to, is newly established or is expanded in the province shall be provided for each factory or headquarters or research institute, while in the case of factories, subsidies may be supported for each place of business. However, subsidies may not be provided for butchery (excluding butchery and meat processing), ready-mixed concrete, asphalt concrete, asphalt, blocks, cement, concrete pipes, tobacco stemming and re-drying, recycled materials, storage and processing, frozen foods, grain polishing, prepackaged meals, unrefined and herbal liquors, general lumbering, printing, organic fertilizers, sheet glass processing, ceramics, limestone, plastics, roof tiles, stone products, non-metallic minerals, cast-iron pipes, structural metal products, nonferrous metal smelting, metal doors, metal tanks, hand tools, general hardware manufacturing, pollution, explosion and fire hazard businesses, and other business types for review as exceptions for subsidies. (Amended, July 3, 2015, December 29, 2017, April 9, 2021)
2. ② Producer service, IT, CT and R&D businesses as stipulated in Article 7.1 of the Ordinance refer to the businesses in Annex 1, while subsidies for headquarters, research institutes, financial institutions and producer service, IT, CT and R&D businesses as stipulated in Article 7.5 of the Ordinance shall be provided for acquiring buildings to use as the company’s headquarters or main office that is directly related to the company’s affairs or for installing facilities and equipment, and in the case of building leases, subsidies of up to 50% of the annual leasing costs may be provided for 5 years (provided, the subsidies do not exceed KRW 100 million annually). However, in case of producer service, support can be provided to a company with whom the Committee decided to sign investment MOU considering ripple effects throughout the provincial economy, prior to the investment MOU with Jeollabuk-do.
3. ③ Regarding the price of acquiring a building as stipulated in paragraph 2, when the company is not directly using part of the building it has acquired, the subsidies shall be reduced in proportion with the percentage of the unused floor area. However, when calculating the investment amount for leasing land, the aggregate total of leasing fees for up to 5 years shall be added to calculate the total investment amount.
4. ④ Regarding investment subsidies for the relocation of a company’s headquarters or research institute, financial institute or a producer service, IT, CT, or R&D business pursuant to paragraph 2, the relocation and initiation of business shall occur within 3 years of the date of acquiring the land or building, and the company must fill out and submit the application form in Annex No. 1.
5. ⑤ Companies that hope to receive investment subsidies as stipulated in Article 7.4 of the Ordinance shall fill out and submit the application form in Annex No.2, 3 or 4 once within 3 years of the date of signing the move-in contract (factory establishment approval) or land sales contract or an investment agreement with Jeollabuk-do. However, a company that has already made an expansion investment at an existing site as stipulated in Article 7.2 of the Ordinance makes an additional expansion at the same site, subsidies shall be provided only to companies that have signed an investment agreement 3 years after the date of applying for the initial subsidies. (Amended, March 31, 2017, December 29, 2017, December 31, 2019, April 9, 2021)
6. ⑥ When providing subsidies stipulated in paragraph 1, subsidies for companies that relocate to particular cities or counties within the province may receive separate subsidies after calculating the investments made in each city or county separately.
7. ⑦ Manufacturing businesses related to major local industries as stipulated in Article 7.6 of the Ordinance refer to the business types in Annex 2.
8. ⑧ Enterprises that hope to receive subsidies for interest rate differences, etc., as stipulated in Article 7.7 of the Ordinance, shall submit evidential materials that prove that it has in fact suffered damage.

Article 4 (Preferential Support for Main Local Industry Companies)

Article 5 (Special Support for Large-scale Investing Companies)

1. ① Companies that hope to receive various subsidies as stipulated in Article 8 of the Ordinance shall fill out and submit the relevant application form in Annex No, 2, 5, or 6, as stipulated in Articles 3, 7 and 8. However, when there is a reasonable cause, a one-time extension for up to 3 years may be granted after deliberation by the Committee.
2. ② Financial support pursuant to Article 8.2 of the Ordinance shall be provided within a monthly limit of KRW 100,000 per person for up to one year for employees who have been residing in the province for one year or longer, and to receive such support companies shall fill out and submit the application form in Annex No. 7 within 3 years of the factory’s initial date of operation. However, the settlement subsidy for employees of partner companies of large investment company shall be supported only when the investment amount of each partner company exceed KRW 10 billion with 10 or more full-time employees.
3. ③ Installation of the following factory infrastructure is eligible for support pursuant to Article 8.4 of the Ordinance, while only companies that fill out and submit the application form in Annex No. 8 within 3 years of signing a move-in contract (factory establishment approval) or a land sales contract or an investment agreement with Jeollabuk-do shall be subsidized after deliberation by the Committee. In such cases, the subsidies shall not exceed 30% of the investment in production infrastructure, and tenant companies of industrial complexes (including agro-industrial complexes) may receive up to KRW 3 billion per company (KRW 5 billion per company for individual sites).
   1. 1. Entry roads: to the site border
   2. 2. Electricity: when supply is 22.9kv or greater (and reaches inside the complex)
   3. 3. Gas: when supplied through urban gas tank lorries
   4. 4. Wastewater: for pretreatement facilities with emissions lower than the maximum permissible level
4. ④ Regarding subsidies for the large-scale investing company infrastructure, when the company fails to meet the investment amount and number of regular employees as stipulated in the initial investment agreement, the difference may be offset through other subsidies.
5. ⑤ Large-scale investing companies with a minimum investment of KRW 100 billion or 300 or more regular employees, and a factory in operation are eligible for being recommended to have an honorary road named after the company pursuant to Article 8.5 of the Ordinance.

Article 6 (Differential Provision of Subsidies Based on Employment Scale)

Article 7 (Employment Subsidies)

1. ① Employment subsidies as stipulated in Articles 10 and 26 of the Ordinance may be provided for every regular employee that exceeds 20 (or 5 in the case of collective relocations, IT, CT or R&D businesses, carbon enterprises, reshoring companies, or financial institute) within a monthly limit of KRW 1 million per person, and for up to 6 months and a maximum KRW 1 billion per company. However, in case of producer service, support shall be up to KRW 500 million per company within 6 months and KRW 300,000 per month.
2. ② Employment subsidies as stipulated in Articles 10 and 26 of the Ordinance may be provided may be provided for the number of newly hired persons residing in the province (based on residence registration) within 3 years of the date of business initiation or construction approval as of the date of application.
3. ③ Companies that hope to receive employment subsidies shall fill out and submit the relevant application form in Annex No. 5, 5-2, or 5-3.

Article 8 (Education and Training Subsidies)

1. ① Education and training subsidies as stipulated in Articles 11 and 27 of the Ordinance shall be provided for the number of regular employees exceeding 20 persons (5 persons in the case of collective relocations, IT, CT or R&D businesses, carbon enterprises, reshoring companies, or financial institutes) for an education or training period of up to 6 months, for a monthly minimum of KRW 100,000 and maximum of KRW 500,000 (monthly maximum of KRW 300,000 for producer service businesses) per person, and for a total of up to KRW 500 million per company.
2. ② The amount subsidized per person for education of training shall be decided by the Committee or the Tourism Committee in consideration of the characteristics of the particular education or training.
3. ③ Education and training subsidies shall be provided to persons residing (based on resident registration) in the province as of the date the application for the newly employed person is submitted, for up to one time, and only for education or training carried out within 3 years of the date of business initiation or construction permission. However, support for foreign-invested companies shall be based on the National Financial Funds Support Criteria for Local Governments to Attract Investing Companies.
4. ④ Companies that hope to receive subsidies for educating or training new employees shall write up and submit an application based on Annex No. 6, 6-2, and 6-3.
5. ⑤ Based on Article 2 of the Act on the Development of Vocational Skills of Workers, education and training as stipulated in paragraph 1 refer to education or training carried out at public vocational training facilities established and operated by the national or local governments, vocational skills development and training facilities established and operated by a vocational skills development and training corporate body, other vocational skills development and training facilities as stipulated in a Ministry of Labor Decree, educational institutions of a level equal to or above that of a professional (technical) college, and other institutions recognized by the governor.

Article 9 (Location Subsidies for Foreign-invested Companies)

1. ① Support for lease price differences based on Article 13.1 of the Ordinance shall not be provided for more than 10 years since the initial date of provision.
2. ② Support for sales price differences based on Article 13.2 of the Ordinance shall not exceed the standard factory area rate by business type, announced by the Minister of Industry Trade and Energy,
   based on factory site area as stipulated in the Industrial Cluster Development and Factory Establishment Act.
3. ③ Companies that hoe to receive subsidies shall submit an application based on Annex No. 2-2 within 1 year since the date of signing the lease or sales agreement.

Article 10 Deleted

1. ① Deleted
2. ② Deleted

Article 11 (Support for Foreign Living Environment Enhancement Businesses)

1. ① Prior consultation is necessary for the Committee to decide on whether or not to supporting foreign living environment enhancement businesses as stipulated in Article 19.1.1 of the Ordinance.
2. ② Support for employee accommodation facilities as stipulated in Article 19.1.1 of the Ordinance shall be limited to temporary accommodation facilities for employees dispatched by foreign-invested companies in the early stages of the business, where the period of support shall not exceed 2 years.

Article 11-2 (Special Support to Reshoring Companies)

1. ① A company which wants to receive various subsidies in accordance with the Ordinance 12-2 shall submit an application form in Annex 2-5, Annex 2-6, Annex 5-4, or Annex 7-2.
2. ② Those eligible for additional subsidy support in pursuant to the Article 12-2.1 of the Ordinance are as follows.
   1. 1. Exclusive complex prescribed in the Ordinance 12-2.1.1: Exclusive complex of reshoring companies and Iksan Fashion Complex
   2. 2. Collective relocation prescribed in the Ordinance 12-2.1.2: 2 or more companies engaged in the same or similar industry relocated collectively, with 5 or more full-time employees and the combined number of companies being 10 or more
   3. 3. Received consultation or relocate facilities, etc., to liquidate overseas place of business prescribed in the Article 12-2.1.5: The expenses spent for liquidation or re-installation of facilities to be relocated to domestic place of business, transportation, various insurances and commissions, consulting (referring to KOTRA’s restructuring consultation) for restructing of companies due to liquidation, scale-down, or sales of overseas place of business
3. ③ Jeollabuk-do job creation subsidy in accordance with the Ordinance 10-2 and 12-2.1.6 is paid out when a company applies for the subsidy within 6 months after expiration of job creation subsidy by the Ministry of Employment and Labor, and can be paid up to 2 years additionally according to the criteria set in the Clause 4. A company which intends to receive the job creation subsidy for reshoring companies shall submit the application form in Annex 5-4 to the governor. The criteria for job creation subsidy is as follows. .
   1. 1. Newly hire 5 or more full-time employees within 3 years from the commencement of business or construction approval date, and support can be made from more than 5 employees .(up to 100 employees per company)
   2. 2. The support amount is up to annually KRW 7.2 million per person (600,000 per month) for SMEs, up to annually KRW 3.6 million per person (300,000 per month) for MMEs, and up to KRW 1 billion per company.
   3. 3. The application method is to apply twice in a unit of 12 months within 2 years from the expiration of subsidy period of MOEL’s job creation subsidy.
4. ⑤ The recipients of subsidy in accordance with the Ordinance 12-2.1.7 are reshoring companies with 50 or more full-time employees.
5. ⑥ A company supported by ⑤ is to construct new employee’s dormitory or rent accommodation, it is possible to support within 30 percent of construction cost or rental fees. N case of construction cost, the limit is up to KRW 1 billion, while the limit for rental fee is KRW 100 million per year. The period of support for rental fees is up to 5 years since the date of commencement of business. However, if subsidy is supported by including work environment improvement facilities in facilities investment amount, support is excluded.
6. ⑦ A company which intends to receive subsidy in accordance with ⑤ shall submit the subsidy application form for employee’s accommodation construction cost and rental fees as Annex 7-2, within 3 years since the business commencement date.
7. ⑧ A company which received support for construction of employees accommodation in accordance with ⑤ shall use for that purpose for 5 or more years from the date employees started moving in. [Newly established on April 9, 2021]

Article 12 (Provision of Subsidies for Investment in Tourism Industry Facilities, Etc.)

1. ① Companies that hope to receive subsidies for investing in the tourism industry, as stipulated in Article 25 of the Ordinance, shall first register (approvals for use based on the Building Act given to business that do not require registration) the approval or permission for business plans based on the Tourism Promotion Act (building permission based on the Building Act in the case of businesses that do not require approval for business plans), and submit an application based on Annex No. 2 to 4 once every 3 years to the governor.
2. ② Any of the following are eligible for tourism industry infrastructure subsidies as stipulated in Article 25.3 of the Ordinance, and the amount of the subsidies are limited to 30% of the investment amount per infrastructure, and up to KRW 3 billion per company, and decided after deliberation by the Tourism Committee.
   1. 1. Entry roads: to the site border
   2. 2. Gas: when urban gas is supplied via tank lorry
   3. 3. Wastewater: for pretreatement facilities with emissions lower than the maximum permissible level

Article 13 (Decision and Settlement of Provision of Subsidies, Etc.)

1. ① When receiving applications for subsidies based on Articles 3 to 12, the governor shall decide on whether to grant the subsidies based on deliberation by the Committee or the Tourism Committee.
2. ② (Deleted, December 12, 2014)
3. ③ When signing an investment contract with the province based on Article 29 of the Ordinance, it must be done in written form, and the same written contract shall be attached to any applications for subsidies. (Amended, December 12, 2014)
4. ④ (Deleted, December 12, 2014)
5. ⑤ (Deleted, December 12, 2014)

Article 14 (Use of External Experts, Etc.)

1. 1. Persons, such as lawyers or certified public accountants, who have obtained a professional license related to investment, with 2 or more years of experience in related fields
2. 2. Persons in charge of lectures on subjects in business or economics at a 4-year university with a title of assistant professor or higher
3. 3. ersons with work experience of 2 or more years at a large private company at the executive or higher level
4. 4. Persons with work experience of 2 or more years at a financial institution (commercial bank, stock firm, investment company, etc.) at the executive level
5. 5. Persons with work experience at other government organizations, general companies, etc., that makes them equally qualified as the persons above

Article 15 (Provision of Monetary Incentives, Etc.)

1. ① Jeollabuk-do affiliated civil servants or previously notified individuals, companies or organizations (including corporate bodies) with records in attracting investment to the province are eligible for monetary incentives as stipulated in Article 33 of the Ordinance. (Amended, March 31, 2017)
2. ② For those with a record in attracting investment in accordance to Article 1 to receive a monetary incentive, they shall submit an application based on Annex No. 10 within 6 months since completion of factory registration after the day of paying the deposit for the lease or sales contract, and the Committee shall decide on whether to grant the monetary incentive and the incentive amount in consideration of the contribution, activity records, previous incentives, etc. (Amended, March 31, 2017)
3. ③ Monetary incentives for attracting foreign or domestic investments as stipulated in Articles 1 and 2 may be provided based on criteria listed in Attachment 4.
4. ④ Civil servants deemed to have provided outstanding follow-up measures to companies attracted to the province in licensing and gaining approval, etc., as stipulated in Article 33 of the Ordinance, are eligible for an official commendation and support to an overseas tour advanced sites.
5. ⑤ For cases in which a monetary incentive was applied for and received through false or other wrongful means, the governor may recover the amount of the incentive already provided. (Newly established, March 31, 2017)

Article 16 (Follow-up Measures for Subsidized Companies)

1. ① The governor and city and county mayors shall write up a management register for subsidized companies based on Annex No. 11, and provide follow-up measures.
   1. 1. Business plan enforcement matters
   2. 2. Whether or not the subsidies are being used appropriately
   3. 3. Whether or not there are reasons for cancelling or taking back subsidies, etc.
   4. 4. Matters recognized as necessary for achieving the goals of other supplementary businesses
2. ② The governor and city and county mayors shall take necessary measures, such as securing bonds, to ensure that companies that receive subsidies fulfill their investment plans.
3. ③ Companies that have received government investment subsidies based on paragraphs 1 and 2 of Article 30 of the Ordinance shall submit a settlement of accounts to the mayor of the relevant city or county as stipulated in the National Financial Funds Support Criteria for Local Governments to Attract Investing Companies, and the mayor shall complete settlement of the subsidies within 3 months since the date of investment completion. (Amended, July 3, 2015)
4. ④ Every year, the mayor of a city or county who has issued subsidies to a company based on paragraphs 1 and 2 of Article 30 of the Ordinance shall review and confirm the following matters, and submit the results to the governor by the end of February. (Amended, July 3, 2015)
   1. 1. Relocation and investment plan implementation matters
   2. 2. Reasons for falling short of the intended investment
   3. 3. Reasons for falling short of the intended number of regular employees or new hires
   4. 4. Enforcement plans, enforcement matters, etc., of delay period, whether or not to recover subsidies, etc., regarding companies that fail fulfillment
5. ⑤ (Deleted, march 31, 2017)

Article 17 (Financial Burden of Attracting Companies on Cities or Counties)

1. ① When an investment attracted through efforts of the province is deemed to have made a significant contribution to revitalizing the local economy of a city or county, the governor may allocate part of the burden of subsidies for the investing company on the relevant city or county.
2. ② Based on the regulations of Article No. 36 of the Ordinance, the province shall provide subsidies for foreign-invested companies attracted through the efforts of a city or county, only if the relevant city or county shares the financial burden.

Supplementary Provision (Regulations No. 3054, August 11, 2017)

Supplementary Provision (Regulations No. 3144, October 12, 2020) (Partial amendment to Regulations on the Ordinance and Enforcement Regulations of Jeollabuk-do Promotion of Attracting Companies and Investment to overhaul labor terms)