ULSAN < invest Korea

Article 1 (Purpose)

Article 2 (Definitions)

1. 1. The term "business commencement date" means the date of factory registration under Article 16 of the 「Industrial Cluster Development and Factory Establishment Act」 or the date of business commencement specified on the business registration certificate under Article 8 of the 「Value-Added Tax Act」.
2. 2. The term "regular full-time employees" means persons who provide labor at the relevant factory or place of business for wages, referring to the average number of wage earners for the preceding one year recorded in the withholding income tax report submitted to the competent tax office pursuant to Article 185 (1) of the 「Enforcement Decree of the Income Tax Act」.
3. 3. The term "factory facilities" means buildings (including auxiliary facilities), structures, machinery, and equipment necessary for manufacturing, processing, or repairing goods within factory sites.

Article 3 (Ulsan Metropolitan City Investment Attraction Committee)

1. ① The Chairperson of the Ulsan Metropolitan City Investment Attraction Committee (hereinafter referred to as the "Committee") under Article 3 of the 「Ulsan Metropolitan City Ordinance on Corporate and Investment Attraction, etc.」(hereinafter referred to as the "Ordinance") shall represent the Committee and overall manage the operations of the Committee. If the Chairperson is unable to perform their duties due to unavoidable reasons, the Vice Chairperson shall act on their behalf, and if both the Chairperson and Vice Chairperson are unable to perform their duties, a member designated in advance by the Chairperson shall act on their behalf.
2. ② When the Chairperson calls a meeting, the Chairperson shall give written notice of the meeting date, time, place, and items for deliberation to each member no later than three days prior to the meeting: Provided, That this shall not apply in urgent cases.
3. ③ In urgent or unavoidable cases, the Chairperson may convene a Committee meeting through written deliberation in lieu of calling a physical meeting.
4. ④ The Secretary of the Committee shall be the head of the department in charge of investment attraction, and the Secretary shall prepare and keep minutes of meetings regarding the following matters and report them to the Chairperson upon completion:
   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 When deemed necessary in relation to matters under deliberation by the Committee, the Chairperson may request relevant public officials or experts to attend and state their opinions, or request cooperation such as the submission of data and opinions.

Article 4 (Eligibility for Domestic Enterprise Support)

1. 1. The investment amount shall be KRW 1 billion or more;
2. 2. The number of newly hired regular full-time employees shall be 20 or more.

Article 5 (Location and Facility Subsidies)

1. ① The standards for location subsidies and facility subsidies granted pursuant to Articles 10 and 11 of the Ordinance are as follows:
   1. 1. Location Subsidy: Granted within 20 percent of the amount exceeding KRW 2 billion of the site purchase cost, up to KRW 3 billion. Provided, That in cases of relocation within the jurisdiction, support shall be based on the area exceeding the site area of the existing place of business.
   2. 2. Facility Subsidy: Granted within 20 percent of the amount exceeding KRW 1 billion of the facility cost, up to KRW 3 billion, and the scope of recognized facility costs shall be as specified in Attached Table 1. Provided, That in cases of relocation within the jurisdiction, support shall be based on the portion exceeding the total building floor area of the existing place of business and newly purchased equipment and machinery.
2. ② The Mayor may grant additional location and facility subsidies by adding support ratios in accordance with Attached Table 2 based on the number of newly hired employees.
3. ③ An enterprise seeking to receive a subsidy shall submit an application in Form 1 to the Mayor within six months from the business commencement date.
4. ④ An enterprise seeking to receive a subsidy shall endeavor to use a portion of the investment amount for working environment improvement facilities (referring to auxiliary facilities of a factory installed within the factory site for employee welfare pursuant to Article 2, Subparagraphs 6-2, 7, and 9 of the 「Enforcement Rule of the Industrial Cluster Development and Factory Establishment Act」, excluding childcare facilities).

Article 6 (Employment and Training Subsidies)

1. ① Subsidies under Articles 12 and 13 of the Ordinance shall be granted where an investing enterprise newly hires more than 20 employees within five years from the business commencement date, based on the following standards:
   1. 1. Employment Subsidy: Up to KRW 500,000 per month per excess employee for up to six months. In this case, eligible recipients shall be persons who have resided in the City for six months or longer.
   2. 2. Education and Training Subsidy: Up to KRW 500,000 per month per excess employee for up to six months, provided that the total amount per enterprise shall not exceed KRW 200 million.
2. ② The education and training under paragraph (1) 2 shall apply where training is conducted for at least one month at a vocational skills development training facility under Article 2, Subparagraph 3 of the 「Act on the Development of Vocational Skills of Citizens」, and support shall be limited to education and training conducted within five years after the business commencement date.
3. ③ An enterprise seeking to receive a subsidy shall submit an application in Form 2 to the Mayor within three months after the date six months have elapsed from the business commencement date.
4. ④ An enterprise that has received a subsidy shall maintain the employment of the supported personnel for three years from the date of receiving the subsidy.

Article 7 (Relocation and Settlement Subsidy)

1. ① The relocation and settlement subsidy under Article 14 of the Ordinance may be granted only once, up to KRW 1 million each for the employee, their spouse, and children, for up to five persons per household. In this case, employees receiving the subsidy must maintain resident registration within the jurisdiction for two years or longer.
2. ② An enterprise seeking to receive a subsidy shall submit an application in Form 1 to the Mayor within six months from the business commencement date.
3. ③ An enterprise that has received a subsidy shall submit the status of subsidy payment to each worker and supporting documentation to the Mayor within 14 days.

Article 8 (Support for Relocating and Start-up Enterprises)

1. ① Relocating enterprises and start-up enterprises under Article 9 (2) 1 of the Ordinance shall refer to enterprises or research institutes falling under any of the following subparagraphs, and the subsidy standards shall be as specified in Attached Table 3:
   1. 1. Technology-innovative small and medium enterprises (SMEs) or management-innovative SMEs under Article 2, Subparagraph 3-2 or 4-2 of the 「Act on Promotion of Technology Innovation of Small and Medium Enterprises;」;
   2. 2. Corporate research institutes under Article 6 of the 「Enforcement Decree of the Act on Support for Research and Development of Corporate Research Institutes, Etc.」 (limited to SMEs in the case of start-up enterprises);
   3. 3. Venture businesses under Article 2 (1) of the 「Act on Special Measures for the Promotion of Venture Businesses」;
   4. 4. SMEs whose research and development expenses account for 5 percent or more of their revenue for the relevant taxable year under Attached Table 6, Item 1 of the 「Enforcement Decree of the Restriction of Special Taxation Act」;
   5. 5. SMEs conducting business corresponding to new growth and core technologies under Attached Table 7 of the 「Enforcement Decree of the Restriction of Special Taxation Act」;
   6. 6. SMEs operating industries or business categories selected through consultation between the Minister of Trade, Industry and Energy and the Mayor to foster regionally specialized industries.
2. ② Notwithstanding paragraph (1), the Mayor may provide support differing from the standards in Attached Table 3 through deliberation by the Committee if deemed necessary.
3. ③ Types of subsidies are as follows, and an enterprise seeking to receive a subsidy shall submit an application in Form 3 to the Mayor:
   1. 1. Location Subsidy: Site acquisition cost, building acquisition cost, new building construction cost, and rent;
   2. 2. Equipment Subsidy: Acquisition cost of machinery and equipment necessary for conducting business;
   3. 3. Employment Subsidy: Personnel expense support for newly hired regular full-time employees;
   4. 4. Relocation and Settlement Subsidy: Settlement support grants for workers, spouses, and children moving in from other Special Cities, Metropolitan Cities, or Provinces.
4. ④ Notwithstanding Article 9 (1) of the Ordinance, relocating enterprises and start-up enterprises may be supported mutatis mutandis as enterprises entering into investment agreements if their business plans are approved.

Article 9 (Support for Strategic Industry Enterprises)

1. ① Strategic industries under Article 9 (2) 2 of the Ordinance refer to AI data center-related industries, and the scope of business categories includes any of the following:
   1. 1. Any of the following categories under the 「Korean Standard Industrial Classification」(KSIC):
      1. A. C26(Manufacturing of Electronic Components, Computers, Visual, Sound and Communication Equipment)
      2. B. C28(Manufacturing of Electrical Equipment)
      3. C. C29(Manufacturing of Other Machinery and Equipment)
      4. D. J62(Computer Programming, System Integration and Management)
   2. 2. Other business categories recognized as AI data center-related industries through deliberation by the Committee.
2. ② The types and standards of subsidies for enterprises operating in any of the categories under paragraph (1) shall follow Attached Table 4, and eligible targets shall be determined through deliberation by the Committee.
3. ③ An enterprise seeking to receive a subsidy under Item 1 of Attached Table 4 shall submit an application in Form 4 to the Mayor within six months from the business commencement date.
4. ④ Among the enterprises falling under paragraph (1), relocating and start-up enterprises shall be subject to the support standards in Item 2 of Attached Table 4, and enterprises seeking to receive a subsidy shall submit an application in Form 3 to the Mayor.

Article 10 (Scope of Foreign Investment Eligible for Support)

1. ① The scope of foreign investment eligible for support under Article 24 (1) 2 of the Ordinance refers to cases where the foreign investment amount is USD 1 million or more and regular full-time employees number 30 or more.
2. ② The scope of foreign investment eligible for support under Article 24 (1) 3 of the Ordinance falls under any of the following:
   1. 1. Industries designated by the Mayor for fostering regionally specialized industries such as the automotive, shipbuilding/maritime, fine chemical, environmental, and non-ferrous new materials industries, where the foreign investment amount is USD 1 million or more and regular full-time employees number 30 or more;
   2. 2. Industries other than Item 1 where the foreign investment amount is USD 10 million or more and regular full-time employees number 50 or more.

Article 11 (Targets for Location Support, etc.)

1. ① Lease support under Article 19 (1) of the Ordinance shall apply to enterprises equal to or exceeding the scale prescribed in Article 25 (1) of the 「Enforcement Decree of the Foreign Investment Promotion Act」 or enterprises falling under Article 10.
2. ② Support for purchase prices under Article 19 (2) and (4) of the Ordinance shall be limited to foreign investments prescribed in Article 25 (1) of the Enforcement Decree of the Foreign Investment Promotion Act, covering the difference between the normal purchase price (referring to the price calculated based on development cost; the same shall apply hereinafter) and the contract purchase price. Provided, That in the case of manufacturing, support shall not exceed the standard factory site area based on the standard factory area ratio announced by the Minister of Trade, Industry and Energy.
3. ③ A recipient of a subsidy under paragraph (2) shall engage in the business outlined in the business plan submitted upon subsidy application or purchase contract for five years or longer.
4. ④ The determination of purchase prices for general industrial complexes under Article 19 (3) of the Ordinance shall be set by the Mayor following deliberation by the Ulsan Metropolitan City Local Industrial Site Deliberation Committee.
5. ⑤ Support under Article 19 of the Ordinance shall not exceed 50 percent of the normal purchase price.

Article 12 (Application for Purchase Price Subsidy)

Article 13 (Employment Subsidy)

1. ① Employment subsidies under Article 20 (1) of the Ordinance may be granted up to KRW 500,000 per month per excess employee for up to six months when 20 or more new employees are hired within five years after registration as a foreign-invested enterprise under Article 21 (1) of the 「Foreign Investment Promotion Act」.
2. ② Eligible recipients under paragraph (1) shall be persons who have resided in the City for six months or longer.
3. ③ A person seeking to receive a subsidy shall submit an application in Form 6 to the Mayor.

Article 14 (Education and Training Subsidy)

1. ① Education and training subsidies under Article 20 (1) of the Ordinance may be granted up to KRW 500,000 per month per excess employee for up to six months when training is conducted to hire 20 or more new domestic employees.
2. ② Subsidies under paragraph (1) shall not exceed KRW 200 million per enterprise and shall be limited to training conducted within five years after foreign-invested enterprise registration. Provided, That supported personnel must maintain employment for three years from the date of receiving the subsidy.
3. ③ Training under paragraph (1) shall be conducted for at least one month at a vocational skills development training facility under Article 2, Subparagraph 3 of the Act on the Development of Vocational Skills of Citizens.
4. ④ A person seeking to receive a subsidy shall submit an application in Form 7 to the Mayor.

Article 15 (Facility Subsidy)

1. ① Facility subsidies under Article 20 (2) of the Ordinance may be granted up to KRW 200 million per enterprise within 2 percent of the equipment amount exceeding KRW 3 billion when establishing or expanding factory facilities of KRW 3 billion or more.
2. ② In cases of multi-year investment plans, the period shall be within five years from the year to which the business commencement date upon factory registration (or completion date of facilities in cases of expansion) belongs.
3. ③ A person seeking to receive a subsidy shall submit an application in Form 8 to the Mayor.

Article 16 (Scope of Support for Improving Foreign Investment Environment, etc.)

1. ① The scope of business or operating expense support for improving the foreign investment environment under Article 22 of the Ordinance shall fall under any of the following:
   1. 1. In cases of establishing, expanding, or constructing schools exclusively for foreigners: Business and operating expenses within 50 percent of total costs, up to KRW 200 million;
   2. 2. In cases of creating residential complexes exclusively for foreigners: Within 20 percent of land acquisition costs, up to KRW 200 million;
   3. 3. In cases of acquiring land or constructing new buildings to establish service support facilities in foreign-exclusive residential complexes: Within 20 percent of business expenses up to KRW 200 million; or within 20 percent of acquisition costs up to KRW 100 million when purchasing existing buildings.
2. ② A person seeking to receive a subsidy under paragraph (1) shall submit an application in Form 9 to the Mayor.

Article 17 (Special Support for Large-Scale Investment Enterprises)

1. ① Large-scale investment enterprises under Article 25 of the Ordinance fall under any of the following:
   1. 1. Cases where a domestic enterprise's investment amount is KRW 100 billion or more, or daily regular full-time employees number 300 or more;
   2. 2. Cases where a foreign-invested enterprise's investment amount is USD 50 million or more, or daily regular full-time employees number 300 or more.
2. ② Special support items for large-scale investment enterprises are as follows, and specific support scales shall be determined through deliberation by the Committee:
   1. 1. Up to 5 percent of land acquisition and factory facility investment amounts, not exceeding KRW 10 billion. Provided, That this shall not be granted duplicate with location and facility subsidies under this Rule;
   2. 2. Part or all of infrastructure facilities such as roads, ports, water supply facilities, sewage/wastewater treatment facilities, electricity, telecommunications, and gas facilities;
   3. 3. Other facilities deemed necessary by the Mayor for production activities.
3. ③ Multi-year investment plans under paragraph (1) shall consist of investments made within five years from the date of project initiation.
4. ④ Large-scale investment enterprises seeking special support must use a portion of the investment amount for working environment improvement facilities.

Article 18 (Decision on Subsidy Support)

1. ① The Mayor shall review the business plans and eligibility of investing enterprises seeking subsidies, and determine whether to provide support through deliberation by the Committee. In this case, relevant public officials may be dispatched for field inspections if deemed necessary.
2. ② Upon deciding on subsidy support, the Mayor shall notify the applicant without delay.

Article 19 (Settlement of Subsidies)

1. ① An investing enterprise notified of a support decision under Article 18 (2) shall apply to the Mayor for subsidy settlement in Form 10 after completing the investment.
2. ② Upon receiving a settlement application, the Mayor shall verify it, finalize the subsidy amount, and notify the relevant investing enterprise without delay.
3. ③ The investing enterprise receiving the final determination notice shall apply to the Mayor for payment of the finalized subsidy amount.

Article 20 (Securing Collateral, etc.)

1. ① Before paying subsidies, the Mayor may request the investing enterprise to take measures regarding compliance with obligations separately prescribed by the Mayor.
2. ② The Mayor shall establish mortgages, provisional registrations, or request performance guarantee insurance policies to ensure compliance with obligations arising from subsidy support. Provided, That measures for relocating and start-up enterprises may be separately determined through deliberation by the Committee.

Article 21 (Restriction on Use of Subsidies for Other Purposes)

Article 22 (Expense Support for Dispatched Personnel to Private Organizations)

Article 23 (Targets for Monetary Rewards, etc.)

1. ① Persons eligible for rewards under Article 28 of the Ordinance shall be public officials belonging to the City or Autonomous Districts/Counties, or individuals, enterprises, and organizations (including corporations) that have entered into business agreements and achieved investment attraction performance.
2. ② Persons with investment attraction performance under paragraph (1) seeking monetary rewards shall submit an application in Form 11 to the Mayor, and decisions on payment shall be made through deliberation by the Committee.
3. ③ Payment standards according to investment attraction scale pursuant to paragraphs (1) and (2) are specified in Attached Table 5.

Article 24 (Follow-up Management of Supported Enterprises)

1. ① The Mayor may inspect the following matters to grasp the management status of enterprises that received subsidies:
   1. 1. Progress of business plans;
   2. 2. Proper use of subsidies;
   3. 3. Occurrence of grounds for cancellation or return of support;
   4. 4. Other matters deemed necessary to achieve the objectives of subsidized projects.
2. ② If management status inspections reveal that subsidies were used for off-target purposes or that achieving project goals is deemed difficult, the Mayor may order business plan modifications, corrections, or fulfillment of obligations within a designated period of up to six months. Provided, That if the Mayor recognizes unavoidable reasons, the period may be extended once within the scope of the original period upon application by the relevant enterprise.

Article 25 (Return of Subsidies, etc.)

1. ① When recovering subsidies from subsidized business operators, the Mayor shall follow the ratios prescribed in support conditions.
2. ② If a subsidized business operator fails to comply with follow-up management under Article 24, the Mayor shall suspend subsidy support and claw back subsidies pursuant to paragraph (1).
3. ③ The term "period prescribed by Rule" in Article 29 (1) 1, 3, and 5 of the Ordinance means 5 years, and in Item 4, it means 3 years.
4. ④ The term "justifiable reasons" in Article 29 (1) 1, 3 through 5, and 7 of the Ordinance refers to cases where no fault lies with the enterprise, such as natural disasters or changes in subsidy support plans.

Article 26 (Prohibition of Duplicate Payment)

Article 27 (Applicable Rules for Subsidy Management)

Article 1 (Enforcement Date)

Article 2 (Amendment of Other Rules)

Article 1 (Enforcement Date)

Article 2 (Amendment of Other Rules)

Article 1 (Enforcement Date)

Article 2 (Application Example regarding Scope of Special Support for Relocating and Start-up Enterprises)

Article 1 (Enforcement Date)

Article 2 (Amendment of Other Rules)

Article 1 (Enforcement Date)

Article 2 (Transitional Measures regarding Subsidy Support)

Article 1 (Enforcement Date)

Article 2 (Effective Period of Support)

Article 3 (Transitional Measures)