ULSAN < invest Korea

Article 1 (Purpose)

Article 2 (Definitions)

1. 1. The term "attraction" means activities conducted by Ulsan Metropolitan City (hereinafter referred to as the "City") to enter into a memorandum of understanding on investment or an agreement equivalent thereto (hereinafter referred to as an "Investment Agreement") with domestic or foreign corporations in order to promote corporate investment and employment within its jurisdiction (hereinafter referred to as "within the jurisdiction").
2. 2. The term "investing enterprise" means an enterprise that falls under any of the following sub-items:
   1. a. An enterprise establishing or expanding a business place within the jurisdiction;
   2. b. A relocating enterprise or a start-up enterprise;
   3. c. Any other enterprise recognized by the Mayor of Ulsan Metropolitan City (hereinafter referred to as the "Mayor") as requiring support under this Ordinance to achieve the purpose specified in Article 1.
3. 3. The term "relocating enterprise" means an enterprise that relocates its headquarters, factory, affiliated research institute, or other facility to the jurisdiction (including relocations within the jurisdiction).
4. 4. The term "start-up enterprise" means a small or medium enterprise newly established within the jurisdiction for which less than seven years have elapsed since its establishment.
5. 5. The term "business place" means an independent physical space where an enterprise supplies goods or services to engage in business, and in the case of manufacturing, refers to a factory pursuant to Article 2, Subparagraph 1 of the 「Industrial Cluster Development and Factory Establishment Act」.
6. 6. The term "establishment" means installing a new business place by constructing a new business place, changing the use of an existing building, or other methods.
7. 7. The term "expansion" means installing additional business facilities by increasing the total building floor area of an existing business place.
8. 8. The term "foreigner" means an individual, legal entity, or organization under Article 2 (1) 1 of the 「Foreign Investment Promotion Act」(hereinafter referred to as the "Foreign Investment Act").
9. 9. The term "foreign investment" means investment under Article 2 (1) 4 of the Foreign Investment Act.
10. 10. The term "foreign-invested enterprise or non-profit corporation making a contribution" means an enterprise or non-profit corporation under Article 2 (1) 6 of the Foreign Investment Act.
11. 11. The term "operator of facilities for improving the foreign investment environment" means a person under Article 2 (1) 7 of the Foreign Investment Act.
12. 12. The term "foreign investment zone" means a zone designated under Article 18 of the Foreign Investment Act.
13. 13. The term "Civil petitions" means the administrative matters under Article 17 of the Foreign Investment Promotion Act.

Article 3 (Establishment of Ulsan Metropolitan City Investment Attraction Committee)

Article 4 (Composition of the Committee)

1. ① The Committee shall be composed of not more than 20 members, including one Chairperson and one Vice-Chairperson, and members shall be divided into ex-officio members and commissioned members.
2. ② The Chairperson shall be the Vice Mayor for Economic Affairs, and the Vice-Chairperson shall be the Director General of the AI & Innovative Industry Bureau.
3. ③ Ex-officio members shall be the Director General of the Environment Bureau and the Director General of the Business Coordination Headquarters of the Ulsan Free Economic Zone Authority, and commissioned members shall be commissioned by the Mayor from among persons who fall under any of the following subparagraphs. In this case, the number of commissioned members shall constitute a majority of the total members:
   1. 1. Members of the City Council recommended by the Ulsan Metropolitan Council;
   2. 2. Attorneys-at-law, certified public accountants, patent attorneys, and professors in fields related to enterprise and investment attraction;
   3. 3. Executives of institutions or organizations related to enterprise and investment attraction;
   4. 4. Other persons with abundant professional knowledge and experience in enterprise and investment attraction.
4. ④ The Committee shall have one secretary, who shall be the head of the department in charge of investment attraction.
5. ⑤ A working committee may be established and operated if necessary to efficiently carry out the activities of the Committee.

Article 5 (Term of Office of Members)

Article 6 (Functions of the Committee)

1. 1. Major policies and comprehensive plans concerning enterprise and investment attraction;
2. 2. Matters concerning the attraction, promotion, and support of domestic and foreign investing enterprises;
3. 3. Grievances regarding foreign investment;
4. 4. Matters concerning the handling of civil petitions under Article 17 of the Foreign Investment Act;
5. 5. Matters concerning the selection of subsidy recipients;
6. 6. Matters concerning the interpretation and application of criteria for providing subsidies;
7. 7. Other matters referred to meetings by the Mayor in relation to enterprise and investment attraction.

Article 7 (Meetings)

1. ① Meetings of the Committee shall be convened by the Chairperson when deemed necessary.
2. ② A meeting of the Committee shall open with the attendance of a majority of all registered members, and pass resolutions with the affirmative vote of a majority of the members present.

Article 8 (Allowances, etc.)

Article 9 (Support for Domestic Enterprises)

1. ① The Mayor may grant subsidies, within the limit of the budget, to domestic enterprises that have entered into an Investment Agreement with the City as investing enterprises and fulfilled such agreement.
2. ② Notwithstanding paragraph (1), for enterprises falling under any of the following subparagraphs, the target of support, scope, and criteria for subsidies may be determined separately by Municipal Rules:
   1. 1. Relocating enterprises and start-up enterprises;
   2. 2. Enterprises in industrial sectors recognized by the Mayor as requiring strategic fostering.

Article 10 (Subsidies for Location)

Article 11 (Subsidies for Facilities)

Article 12 (Employment Subsidies)

Article 13 (Subsidies for Education and Training)

Article 14 (Subsidies for Settlement)

Article 15 (Support for Relocating Enterprises Eligible for National Treasury Support)

Article 16 (Special Cases for Civil Petitions Related to Foreign Investment)

Article 17 (Reduction or Exemption of Local Taxes)

Article 18 (Financial Support)

Article 19 (Location Support, etc.)

1. ① The Mayor may purchase part or all of a specific industrial complex and lease it to foreign-invested enterprises within the limit of the budget to promote foreign investment attraction.
2. ② The Mayor may subsidize part of the lot price for foreign-invested enterprises entering foreign investment zones within the limit of the budget, pursuant to Article 14 of the Foreign Investment Act.
3. ③ To promote foreign investment attraction, the Mayor may sell public property within national industrial complexes, general industrial complexes, and agricultural and industrial complexes at or below the development cost.
4. ④ Pursuant to Article 14 of the Foreign Investment Act and Article 16 of the Industrial Sites and Development Act, where an industrial complex developed and owned by a private enterprise is sold to a foreign-invested enterprise at or below development cost, the Mayor may subsidize the difference between the sale price and the development cost within the limit of the budget.

Article 20 (Subsidies)

1. ① Articles 12 and 13 of this Ordinance shall apply mutatis mutandis to employment subsidies and education and training subsidies for foreign-invested enterprises.
2. ② The Mayor may grant facilities subsidies within the limit of the budget where a foreign-invested enterprise investing in new growth engines and technologies under Article 116-2 (1) and (2) of the Enforcement Decree of the Restriction of Special Taxation Act establishes new factory facilities or expands existing ones.

Article 21 (Cash Support for Foreign Investment)

Article 21-2 (Support for Enterprises Relocating from the Capital Region or Enterprises Establishing New Facilities or Expanding Existing Ones)

Article 22 (Support for Improvement of Foreign Investment Environment)

1. ① To improve the foreign investment environment, the Mayor may subsidize part of the business expenses within the limit of the budget in any of the following cases:
   1. 1. Construction of foreign-exclusive schools (including residential facilities for foreign teachers);
   2. 2. Projects for creating foreign-exclusive residential complexes;
   3. 3. Construction of service facilities such as medical facilities or nurseries required for foreign-exclusive residential complexes.
2. ② Where public property under paragraph (1) is leased, the rate of annual lease fee or usage fee shall apply mutatis mutandis to the provisions of the Ulsan Metropolitan City Public Property Management Ordinance (hereinafter referred to as the "Public Property Ordinance").

Article 23 (Lease and Sale of Public Property)

Article 24 (Scope of Foreign Investment Eligible for Support)

1. ① Foreign investments supported under Articles 19 through 20 shall be investments that fall under any of the following subparagraphs:
   1. 1. Foreign investment pursuant to Article 25 (1) of the Enforcement Decree of the Foreign Investment Promotion Act;
   2. 2. Foreign investment in businesses involving new growth engines under Article 116-2 (1) and (2) of the 「Enforcement Decree of the Restriction of Special Taxation Act」;
   3. 3. Foreign investment exceeding a prescribed scale in industries recognized by the Mayor as necessary for regional economic promotion and regional specialized industry fostering.
2. ② Foreign investment supported pursuant to paragraph (1) shall meet the condition that the foreign investment ratio in the relevant enterprise is 30 percent or more, or a foreigner is the largest shareholder.
3. ③ Where a domestic national or domestic corporation directly or indirectly owns voting shares of a foreign corporation or foreign-invested enterprise making the foreign investment, the portion corresponding to the ownership ratio of such shares shall not be deemed a foreign investment ratio under paragraph (2).
4. ④ The total amount of support for a foreign-invested enterprise shall not exceed the investment amount of the relevant foreign-invested enterprise.
5. ⑤ Various supports, such as subsidies, for foreign-invested enterprises may be granted only when the foreign investment is confirmed, such as through the execution of an occupancy contract or lot sales agreement for the relevant foreign-invested enterprise.

Article 25 (Special Support for Investing Enterprises, etc.)

Article 26 (Administrative Support for Investing Enterprises)

Article 27 (Dispatch Work from Private Organizations)

1. ① To efficiently promote investment attraction, the Mayor may request the dispatch of experts belonging to private enterprises or institutions/organizations related to investment attraction.
2. ② The Mayor may provide support for the use of public property (including lodging facilities) and expenses for investment attraction activities within the limit of the budget for dispatched personnel from private organizations.

Article 28 (Payment of Monetary Rewards)

Article 29 (Cancellation and Refund of Subsidies, etc.)

1. ① Where a person who has received various subsidies under this Ordinance falls under any of the following subparagraphs, the Mayor shall cancel the support and order the refund of all or part of the supported amount:
   1. 1. Where business is suspended or closed without justifiable grounds within the period prescribed by Municipal Rules after starting factory operations or starting business;
   2. 2. Where it is recognized that support was received through false or other improper means;
   3. 3. Where the relevant business subject to support is abandoned or reduced without justifiable grounds within the period prescribed by Municipal Rules;
   4. 4. Where an enterprise that received employment subsidies or education/training subsidies fails to maintain the number of employees at the time of subsidy payment without justifiable grounds within the period prescribed by Municipal Rules;
   5. 5. Where an enterprise receiving subsidies relocates to another Special Metropolitan City, Metropolitan City, Special Self-Governing City, Province, or Special Self-Governing Province without justifiable grounds within the period prescribed by Municipal Rules from the date of payment;
   6. 6. Where construction of factories, etc., is not commenced within two years after entering into a lease or purchase contract;
   7. 7. Where factory operations are not commenced without justifiable grounds within two years after completion of construction;
   8. 8. Where construction of factory facilities, etc., significantly falls behind the scheduled progress or is deemed to have no prospect of completion;
   9. 9. Where it is recognized as impossible to achieve the purpose of subsidy support;
   10. 10. Where an employee who received a settlement subsidy resigns or relocates resident registration to another Special Metropolitan City, Metropolitan City, Special Self-Governing City, Province, or Special Self-Governing Province within two years.
2. ② The Mayor may collect subsidies to be refunded pursuant to paragraph (1) in accordance with the Act on the Management of Local Government Subsidies.