ULSAN < invest Korea

Article 1 (Purpose)

Article 2 (Definition)

1. 1. "Subsidies for Employment" shall mean the subsidies paid to the enterprise which newly employs full-time workers for its factory facilities newly installed or expanded.
2. 2. "Subsidies for Education and Training" shall mean the subsidies paid to the enterprise, which educates and trains the newly employed full-time workers for the purpose of preparing a workforce appropriate for business activities, in compensation for part of such expenses.
3. 3. "Subsidies for Facilities" shall mean the subsidies paid for part of the amount spent on expanding or newly building of factory facilities.
4. 4. "Factory Facilities" shall mean the buildings (including any ancillary facilities), structures, machinery and equipment necessary to manufacture, process or maintain goods in the premises of the factory.
5. 5. “Subsidies for relocating” shall mean the subsidies paid to enterprises when they relocate their factories from outside Ulsan Metropolitan City (hereinafter called “City”) to Investment Promotion District or their main office to the City.
6. 6. "The number of full-time employees" shall mean the average number of the employees during the most recent three months, who provide the relevant factory or the place of business with labor, as listed in the reports on the status of collecting the withheld taxes submitted to the appropriate taxation in accordance with Article 185.1 of Enforcement Decree of Income Tax Law.
7. 7. “Subsidies for relocation and settlement” shall mean the subsidies paid to employees of investing companies who transfer their resident registration into the City.

Article 3 (Investment Promotion Committee)

1. ① The Chairman of Ulsan Metropolitan City Investment Promotion Committee (hereinafter called, the "Committee") under the provision of Article 3 of the Ordinance on Enterprise and Investment Attraction of Ulsan Metropolitan City, shall oversee the Committee and control the affairs of the Committee. The vice chairman shall serve the chairman’s duty when the chairman is not able to conduct his duty with inevitable reason. (amended on August 10, 2009,September 28, 2017)
2. ② When the Chairman convenes a meeting of the Committee, a written notice stating the date, time, place and agenda for the meeting shall be given by the Chairman at least three days prior to the date set for such meeting to all members of the Committee, provided, however, that exception shall be applied in case of an emergency. (amended on September 28, 2017)
3. ③ Chairman may determine by letter in case of an emergency or unavoidable engagement.
4. ④ The Secretary of Committee shall be the head of Investment Attraction Team, the secretary shall make and store a conference record in which following matters are written, and also whenever he composes the record, he shall inform the chairman. (amended July 20, 2006 and August 10, 2009, December 31, 2014, September 28, 2017)
   1. 1. Meeting schedule and place
   2. 2. Lists of attended members of Committee and other participants
   3. 3. Processed matters and discussed subjects
   4. 4. Major issues presented by Committee members and participants
   5. 5. Issues under deliberation
   6. 6. Other important issues
5. ⑤ Chairman may have the civil servant in charge or an expert present at the meeting and hear his opinion on relevant data, whenever deemed necessary to the operation of the Committee.

Article 4 (Establishment of Investment Support Team)

1. ① The Investment Support Team, in accordance with Article 7 of the Ordinance, shall be established with officials from City, however, in case of civilians, the Mayor of Ulsan Metropolitan City (hereinafter called “Mayor”) may let them work, if they fall under one of the following. (amended on July 20, 2006 and on August 10, 2009, September 28, 2017)
   1. 1. Experts from domestic or foreign investment specialized institution
   2. 2. Executive officers from investment promotion relevant institution, association and enterprise
   3. 3. Any other persons recognized as having significant experience and professionalism related to investment promotion
2. ② The civilians recommended from their institution or association shall be determined, attached with practical use plan, through consultation and decision by Ulsan Metropolitan City Human Resource Committee. (amended on September 28, 2017)
3. ③ The Term of civilians shall be two year, and if necessary, it may be extended for another one year. (amended on July 20, 2006, September 28, 2017)
4. ④ Persons dispatched and entrusted shall be supervised by the Mayor, and for the public service, ‘Ulsan Metropolitan City Ordinance on Local Public Officer Service’ shall be applied. (amended on July 20, 2006, September 28, 2017)

Article 5 (Subject to Supports for Industrial Site)

1. ① When in part or whole of specific industrial complex is purchased and leased to foreign invested-enterprises under the Article 12.1 of the Ordinance, the enterprise shall be subject to the Article 11 or above the limitation stipulated on Article 25.1 of the Enforcement Decree of Foreign Investment Promotion Act. (amended on August 10, 2009, July 28, 2016)
2. ② Supports for purchase price under the provision of Article 12.2 and 12.4 of the Ordinance shall be the normal purchase price (calculated by construction prime cost) prescribed in Article 25.2 of the Enforcement Decree of Foreign Investment Promotion Act and difference of purchase price on purchase contract. However, in case of manufacturing, supports shall not be provided exceeding the standard size of factory site by rate of standard size of factory site noticed by the Minister of Ministry of Trade, Industry and Energy. (amended on December 18, 2008, August 10, 2009, July 28, 2016, September 28, 2017, and December 7, 2017)
3. ③ Enterprises which want to receive subsidies in accordance with subsection ② shall operate their businesses, based on the business plan submitted when applied for subsidies or purchase contract was made, 10 or more years. (amended on August 10, 2009, September 28, 2017)
4. ④ The purchase price for the local industrial complex under the provision of Article 12.3 of the Ordinance shall be determined by the Mayor through deliberation of Ulsan Metropolitan City Local Industrial Complex Deliberation Committee. (amended on August 10, 2009)
5. ⑤ Supports under the provision of Article 12 of the Ordinance shall not be exceeded 50% of the normal purchase price. (amended on August 10, 2009)

Article 6 (Application of Purchase Land Price Subsidy)

Article 7 (Employment Subsidy)

1. ① Employment subsidies under the provision of Article 13 of the Ordinance may be paid to the enterprises if they newly employ 20 workers within 5 years from the date of registration under the provision of Article 21.1 of Foreign Investment Promotion Act. In that case, subsides shall be paid up to KRW 500,000 per employee exceeding 20 employees within 6 months. (amended on August 10, 2009 and September 28, 2017)
2. ② Those subject to the subsection ① shall be the residents who stay in the City for 6 months or more. (amended on August 10, 2009, and September 28, 2017)
3. ③ Persons who wishes to receive subsidies under the subsection ① shall submit an application prepared on form No. 2 in the annexed paper to the Mayor. (amended on August 10, 2009,and September 28, 2017)

Article 8 (Education and Training Subsidy)

1. ① The subsidies for education and training under the provisions of Article 14 of the Ordinance may be paid up to KRW 500,000 per trainee on a monthly basis for no longer than six months, in case education and training courses are performed following the new employment of twenty or more Korean nationals. (amended on August 10, 2009 and September 28, 2017)
2. ② The total sum of subsidies to be paid under the subsection ① hereof shall not exceed KRW 200 million per enterprise. Each enterprise shall maintain employment of those subsidized workers for three years from the date it received the subsidy. (amended on August 10, 2009 and September 28, 2017)
3. ③ Education and training under the subsection ① hereof shall be in case of education and training at public vocational ability development training institutions designated by the Article 2.3 of the Enforcement Decree of the Vocational Training Promotion Act for one or more month. (amended on August 10, 2009 and July 28, 2016)
4. ④ The person who wishes to receive the subsidies under the subsection ① hereof shall submit an application prepared on form No. 3 in the annexed paper to the Mayor. (amended on August 10, 2009 and September 28, 2017)

Article 9 (Facility Subsidy)

1. ① The subsidies for facilities under the provisions of Article 15 of the Ordinance may amount to up to KRW 200 million per enterprise within two percent of the value of facilities exceeding KRW 3 billion, only in the case that a total investment over KRW 3 billion is made for facilities of a new factory or the expansion of existing facilities. (amended on August 10, 2009 and September 28, 2017)
2. ② In case of annual investment plan, it shall be within 5 years from the day when the business was started through the factory registration (in case of expansion, the date the expansion is completed). (amended on August 10, 2009)
3. ③ The person who wishes to receive the subsidies under the subsection ① hereof shall submit an application prepared on form No. 4 in the annexed paper to the Mayor. (amended on August 10, 2009 and September 28, 2017)

Article 10 (Scope of Support for Foreigners' Living Environment Improvement Project)

1. ① The scope of supports for the business and operation expenses provided in order to improve foreigners’ living environment under the provision of Article 16 of the Ordinance shall be one of the following; (amended on August 10, 2009)
   1. 1. In case of the new establishment, expansion and construction of international school, up to KRW 200 million, within 50% of total expenses (working and operation expenses)
   2. 2. In case of establishment of foreigners’ residential complex, up to KRW 200 million, within 20% of land purchase cost
   3. 3. In case of purchasing land or building in order to newly establish a service support facility in foreigner’s residential complex, 20% of working cost, up to KRW 200 million, and in case of purchasing existing building, 20% of purchase cost, up to KRW 100 million
2. ② The person who wishes to receive the subsidies under the subsection ① hereof shall submit an application prepared on form No. 5 in the annexed paper to the Mayor (amended on August 10, 2009 and September 28, 2017)

Article 11 (Details of Subject to Scope of Support for Foreign Investment)

1. ① In order to receive supports for foreign investors under the provision of Article 18.1 and 2 of the Ordinance, the investment shall be US$ 1 million or more and 30 or more full-time workers shall be employed. (amended on August 10, 2009)
2. ② Foreign investment supported in accordance with Article 18.1.3 of the Ordinance shall be one of the following: (amended on August 10, 2009)
   1. 1. Industries which the Mayor appoints in order to develop regional special industries, including automobile industry, shipbuilding and marine industry, fine chemical industry, environment industry and new material, other than steel, industry with US$ 1 million or more foreign investment and 30 or more full-time workers
   2. 2. Industries other than prescribed in the subsection ① with US$ 10 million or more foreign investment and 50 or more full-time employees

Article 12 (Designation of Domestic Enterprises Promotion District and Scope of Moving in)

1. ① In order to be designated as Domestic Enterprises Promotion District under the Article 19.1 of the Ordinance, national industrial complex or local industrial complex’s actual sales in lots shall be 70% or less or the spaces possible to sell shall be 33,000 m² or more. (amended on August 10, 2009 and September 28, 2017)
2. ② Enterprises able to move in the Domestic Enterprises Promotion District shall be as one of the following: (amended on August 10, 2009)
   1. 1. When an enterprise relocates its factory (including expanding and relocating) from outside of the City
   2. 2. When an enterprise newly builds or expands a factory located in the City
3. ③ Designated area that the Mayor deems necessary under the provision of Article 19.2 of the Article is described in following subsections. (amended on August 10, 2009)
   1. 1. Area needed to conduct the City’s strategic industries
   2. 2. Area needed to improve job creating and residents’ income

Article 13 (Support Scope of Relocating Subsidy)

1. ① Relocating subsidies, provided under the provision of Article 20.1 of the Ordinance, shall be paid within 1% of relocating expense exceeding KRW 1 billion, when the factory facility (facility shall be directly used by the competent enterprise) is exceeded KRW 1 billion, up to KRW 200 million per enterprise. (amended on August 10, 2009 and September 28, 2017)
2. ② When an enterprise relocates its main office to the City under the provision of Article 20.2 of the Ordinance, subsides shall be paid up to KRW 500,000 per employee exceeding 20 employees who work at the main office, up to KRW 100 million per an enterprise. (amended on August 10, 2009 and September 28, 2017)
3. ③ The person who wishes to receive the subsidies under the subsection ① hereof shall submit an application prepared on form No. 6 in the annexed paper to the Mayor, within 1 year from the day when the business is started through the factory registration, and the person who wishes to receive the subsidies under the subsection ② hereof shall submit an application prepared on form No. 7 in the annexed paper to the Mayor, within 1 year from the date of relocation of the main office. (amended on August 10, 2009 and September 28, 2017)

Article 14 (Subject or Scope of support for Domestic Enterprises)

1. ① An enterprise which moves into the Domestic Enterprises Promotion District under the provision of Article 21.4-21.8 of the Ordinance shall invest KRW 1 billion or more or employ 20 or more new workers in order to receive subsidies. (amended on August 10, 2009 and September 28, 2017, July 11, 2019, August 26, 2021)
2. ② Deleted<2019. 7. 11.>
3. ③ Deleted<2019. 7. 11.>
4. ④ Deleted<2019. 7. 11.>
5. ⑤ Deleted<2019. 7. 11.>

Article 14-2(Subsidy for Domestic Enterprises)

1. ① The relocation subsidy in accordance with the Article 21-4 of the Ordinance can be provided within 20 percent exceeding KRW 2 billion of the site purchase cost, up to KRW 3 billion. However, in the case of relocation within the district, the area exceeding the existing business location site shall be the basis.
2. ② The facility subsidy in accordance with the Article 21-5 of the Ordinance can be provided within 20 percent exceeding KRW 1 billion of the facility cost up to KRW 3 billion. The accepted criteria is as shown in the attachment. However, in the case of relocation within the district, support shall be provided basis on newly purchased facilities and machinery equipment and the area exceeding the building area of the existing business site.
3. ③ The employment subsidy in accordance with the Article 21-6 of the Ordinance and the education and training subsidy in accordance with the Article 21-7 of the Ordinance can be supported by applying the Article 7 and the Article 8.
4. ④ The relocation and settlement subsidy in accordance with the Article 21-8 of the Ordinance can be supported only once, KRW 1 million for each of the employee, spouse, and child, up to five people.
5. ⑤ Those who want to claim subsidy support in accordance with the Clause 1, Clause 2, and Clause 4 shall submit the application form in the attached form 8, within 6 months from starting date of business following the registration of factory, etc. Those who want to claim subsidy support in accordance with the Clause 3 shall submit the application form in the attached form 9, after passing 6 months from the starting date of business following the registration of factory, etc.
6. ⑥ Those who want to claim subsidy support in accordance with the Clause 1 and Clause 2 shall endeavor to use part of investment amount for work environment improvement facilities (additional facilities installed within a plant site for the wellbeing of employees) in accordance with Article 2.6.2 (excluding childcare facilities), Article 7 and Article 9 of the Enforcement Rules on the Act on Promotion of Industrial Clusters and Factory Establishment. (established on March 9, 2023)
   [established on July 11, 2019]

14-3 (Special Cases concerning support)

Article 18-2 (Scope of special support for relocating companies · start-ups, etc.)

1. ① "The companies designated by rules among relocating companies and startups" noted in the Article 22 of the Ordinance refers companies or research institutions falling under on of the following paragraphs
   1. 1. Technology innovative or management innovative SMEs in accordance with the Article 2-3(2) or Article 15-3 of the 「Act on Promotion of SMEs Technology Innovation」
   2. 2. “Research institute affiliated with an enterprise (limited to SMEs in case of start-ups)" in accordance with the Article 16-2 (1) of the 「Enforcement Decree Of The Basic Research Promotion And Technology Development Support Act」
   3. 3. Venture business as defined by the Article 2-1 of the 「Act On Special Measures For The Promotion Of Venture Businesses」
   4. 4. SMEs whose expenses referred for research and development are at least 5/100 of its turnover in the relevant taxable year in accordance with the attached Table 6-1 of the 「Enforcement Decree Of The Restriction Of Special Taxation Act」
   5. 5. SMEs operating businesses belonging to new growth engines and source technologies as specified in the attached Table 7 of the 「Enforcement Decree Of The Restriction Of Special Taxation Act」
   6. 6. SMEs operating in the industries or businesses falling under the category of the Article 4-1 to the Article 4-3, or the Article 8 of the 「Standard of National Financial Fund Support for Local Government's Attraction of Companies Investing in the Region」
2. ② The subsidy support criteria according to the Clause 1 shall be referred to the attached form 3. However, if the Mayor sees the need to be otherwise, support might be provided differently from the attached form 3 after deliberation by the committee.
3. ③ The special support subsidy application in the attached form 14 (relocation, establishment of business) shall be submitted to the Mayor: within 6 months from the dates of site purchase, building purchase, building construction completion, rent contract signing, and equipment purchase in case of the companies which want to receive support for locational and equipment purchase expense from the subsidy according to the Clause 1; 6 months after the date of business start, i.e., registration of factory, in the case of companies which want to receive employment subsidy; and within six months from the factory registration date or business start date in case of companies which want to receive relocation and settlement subsidy.
4. ④ The Mayor may attach necessary conditions when providing subsidy, e.g., restriction of disposal during the obligatory business implementation period, if there is no justifiable reason.