Invest in the Future of Jeju Part 02. Investment Attractiveness of Jeju Special Self-governing Province 18 19 JDC Project Guide & Investment Proposal Scope of Target Project for Tax Reduction of Foreign Investment Companies *Legal Basis : Article 121-2 of the Restriction of Special Taxation Act and the Restriction of Special Local Taxation Act, Article 116-2 of the Enforcement Decree of the same Act Type Target Project (Investment Conditions, etc.) Related Regulations Target technology by field of new growth engine and source technology, material processing technology directly related to new growth - [USD 2M] Factory facility installation and operation Attachment 7 of the Enforcement Decree of the Restriction of Special Taxation Act and Attachment 14 of the Enforcement Regulation of the same Act Companies residing in Foreign Investment Zone (individual type), companies residing in Jeju Advanced Science & Technology Complex and Jeju Investment Promotion District - [USD 30M] Manufacturing, IT, etc. - [USD 20M] Tourism development, etc. - [USD 10M] Complex logistics, etc. - [USD 2M] R&D facilities Article 18 Section 1 Clause 2 of the Foreign Investment Promotion Act Development project operators in Jeju Investment Promotion District - Investment amount of USD 10M or more, or a total development project cost of USD 100M or more with 50% or more of foreign investment Article 162 of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City Companies residing in Foreign Investment Zone (complex type) - Investment amount of USD 10M or more, or a total development project cost of USD 100M or more with 50% or more of foreign investment Article 18 Section 1 Clause 1 of the Foreign Investment Promotion Act Cash Grants for Foreign Investments *Basis for Support: Article 14-2 of the Foreign Investment Promotion Act Type Details Applicable Subjects (30% or more of foreign investments) ① [New Growth Engine] Investment in material processing technology related to source technology and new growth technology ② [High-tech] New establishment/expansion of factories, etc. for high-tech and high-tech product business ③ [Material/Parts] Textile, pulp, chemical, medical, etc. fields subject to the Act on Special Measures for Strengthening the Competitiveness of Materials, Components, and Equipment Industries ④ [Job Creation] In the case of employment of 300 or more in manufacturing, construction, information service, etc.; 200 or more in wholesale/retail, accommodation, etc.; 100 or more in other personal service businesses; and 50 or more in real estate businesses ⑤ [R&D Center] research institutes with 5 or more dedicated research personnel for new growth engine technology projects, etc. ⑥ [Regional HQ] In the case of a global company establishing a base for 2 or more overseas corporations ⑦ [Others] In the case of regional specialized industries or metropolitan cooperative industries with a contribution to local job creation and economic development recognized [Special Act on Balanced National Development] Supported Items Article 20-2 of the Enforcement Decree of the Foreign Investment Promotion Act Support for the installation of factory facilities or research facilities ① Land/building purchase cost, lease fee, construction cost, capital goods and research equipment purchase cost, installation cost of infrastructure such as electricity/communication facilities ② Employment Subsidy & Education & Training Subsidy Foreign Investment Support in accordance with the Jeju Special Self-Governing Province Investment Promotion Ordinance Definition of Foreign Investment Company Foreign investment companies or non-profit organizations established under Article 2 Section 1 Clause 6 of the Foreign Investment Promotion Act, with foreign investment ratio of 30% (or more), or having a foreign national as a largest shareholder. Consulting Cost Support for Foreign Investors or Foreign Investment Companies Consulting Cost - Consultation cost for foreign investors, companies, etc. (amount objectively confirmed for contract) - Considered within 1% (limited to KRW 100M) of the confirmed foreign investment * Financial support given when 10% or more of planned investment is implemented. Facility Investment Subsidy Initial Project Cost 10% of the facility investment amount in the case of construction (incl. purchase and lease cost, excl. residential use), purchase of facility equipment, installation of infrastructure for facility investment Up to KRW 50M within 2 years from the start date of the business with more than 30 full-time employees. Settlement Subsidy Special Support for Foreign Investment Companies in New Growth Engine Industries 25% of sale, purchase, and lease when seling, purchasing or leasing. Export Companies Additional support within the 20% each of settlement and facility subsidies for companies with more than USD 1M in export in the previous year of the year of subsidy application Logistics Cost Within 50% of the logistics cost for 2 years (limited to KRW 200M) in the case of transporting goods outside of Jeju for the purpose of shipping finished products produced in the province and transporting materials New & Renewable Energy Facility Cost Within 30% of the facility cost (limited to KRW 200M) in the case of installation of new and renewable energy facilities used for self-sufficiency on the site of HQ, factories, or research institutes Employment Subsidy In the case of new establishment or expansion of business sites or factory facilities and employing locals as full-time employees with a number of employments exceeding 20, KRW 500,000 per month for 12 months per person (limited to KRW 300M) Foreign Investment Companies in the New Growth Engine Industries ※ Please contact Investment Promotion Division at Jeju Provincial Office for details. ※ Checking of relevant regulations is recommended when conducting business as investment policies may change. Type Details State/Local Government Financial Fund Sharing Ratio 6:4 for land purchase cost and lease fee, 5:5 for Employment Subsidy & Education & Training Subsidy * 10% increase in national expense applicable for high-tech and R&D in nonmetropolitan region. *Legal Basis : Jeju Special Self-Governing Province Investment Promotion Ordinance
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