JDC Project Investment Guide

Invest in The Future of Jeju JDC Project Investment Guide Part 02. Jeju Special Self-Governing Province Investment in Attraction 14 15 3. Corporate Relocation Incentives Support for Relocation of Domestic Companies to Jeju Types Applicable Subjects Support Project Name Supports Companies in Metropolitan Area Companies with 3 years or more of business performance and 30 or more full-time employees in the metropolitan area to relocate independent business sites such as HQ, factories, or research institutes (existing business sites shall be closed or sold) ※ Subjects to be excluded: Real estate-related businesses, consumer service businesses, construction businesses, non-store sales businesses, marine transportation brokerage businesses ※ Support limit: KRW 10 billion per company (65% of national expense and 35% of provincial expense) Settlement Subsidy Large Corporations N/A Mid-sized Companies Within 10% of the land purchase price SMEs Within 30% of the land purchase price Facility Investment Subsidy Large Corporations Within 5% of the facility investment Mid-sized Companies Within 7% of the facility investment SMEs Within 9% of the facility investment Companies outside Metropolitan Area Companies with 2 years or more of business performance and 20 or more full-time employees outside metropolitan area (100% of provincial expense) ※ However, in the case of economic cooperation industries, key industries, knowledge service industries, regional focused attraction industries, and new growth engine industries, companies with 10 or more full-time employees Settlement Subsidy Within 25% of the land purchase price Facility Investment Subsidy Within 10% of the facility investment Employment Subsidy 12 months*KRW 500,000/person (Limited at KRW 100M) Education & Training Subsidy 6 months*KRW 500,000/person (Limited at KRW 100M) New/Expanding Companies Companies with 3 years or more of business performance, 10 or more full-time employees, and an investment amount of KRW 1B (KRW 30B or more for large corporations) - Number of new hires must be at least 10% (at least 10 employees) of the existing workforce - The existing business sites shall be maintained (closure, sale, lease, and reduction are prohibited). However, except when the existing business site is located in an overcrowding control area in the metropolitan area - Number of full-time employees to be maintained during the project implementation period (5 years), important property bookkeeping/registration, transfer/collateral shall not be provided, and subsidy recovery security shall be submitted ※ Subjects to be excluded: Real estate-related businesses, consumer service businesses, construction businesses Facility Investment Subsidy Large Corporations Within 5% of the facility investment Mid-sized Companies Within 7% of the facility investment SMEs Within 9% of the facility investment 2. Foreign Investment Zone Benefits Types Supports Tax Reduction Tariff ◊ Exemption for 5 years from the reporting date of investment in capital goods Local tax (acquisition tax & property tax) ◊ 100% exemption for 5 years, 85% exemption for 10 years thereafter Individual Basis Designation Process STEP 1 Application (investor) STEP 2 Request for deliberation on the designation of foreign investment zone (governor) STEP 3 Deliberation by the Foreign Investment Committee (Ministry of Trade, Industry, and Energy) STEP 4 Notification of designation of foreign investment zone (governor) Applicable Subjects & Investment Amount ◊ Manufacturing and high-tech industries (USD 30M or more) ◊ Tourism (USD 20M or more) ◊ Logistics (USD 10M or more) ◊ Advanced technology industry research institutes (USD 2M or more and full-time employment of 10 or more researchers) Basis for Designation Article 18 of the Foreign Investment Promotion Act ※ Since this is only a summary, please contact the Investment Promotion Division of Jeju Provincial Office for more details. ※ Please be sure to check the relevant regulations when conducting actual work as investment-related systems and regulations may be subject to change.