Subsidy Support for Foreign-Invested Enterprises in 2017

In accordance with Article 14 of the Foreign Investment Promotion Act (FIPA), Article 20 of the FIPA Enforcement Decree, Article 15 and 16 of the Seoul Metropolitan Government (SMG) Ordinance on Support for Foreign Investment, we hereby offer notification of the plan, outlined below, to provide subsidies for employment, education, and training for foreign invested enterprises in Seoul Metropolitan City in 2017. Eligible companies are kindly requested to submit an application for subsidy in accordance with the following.

February 16, 2017

Mayor of Seoul Metropolitan City

■ Eligibility period: 1.1.2016 ~ 12.31.2016

■ Eligibility and Requirements

  • ○ Eligibility: Foreign investment projects attracted by the SMG or foreign-invested enterprises that invest in new growth industries designated by the SMG
  • ※ Eight new growth industries: IT convergence, digital content, green industry, business services, fashion & design, finance, tourism and conventions, biomedical
  • ○ Requirements to receive support
    • – New recruitment and training should take place within five years of the date of foreign-invested enterprise registration or within five years of the date of an increase in investment.
    • – Companies whose total number of regular employees increased by more than 10 from the previous year (2015) through new recruitment in 2016 (or, companies whose total number of regular employees is more than 10 for those newly founded in 2016) ※ Applies only to Korean nationals employed as of the date of application
    • ◆ Regular employee: A person who provides labor to a company for the purpose of a wage and who meets one of the following (except for non-regular workers, as specified in Article 2, Paragraph 1 of「Act on the Protection, etc. of Fixed-term and Part-time Workers」, who have signed labor contracts of less than 1 year, or short-term laborers as specified in Article 2, Paragraph 1, Clause 8 of「Labor Standards Act」)
    • 1. Average number of persons earning wages from the most recent one year stated on the income tax withholding report, which was submitted to the local tax office in accordance with Article 185, Paragraph 1 of 「Enforcement Decree of the Income Tax Act」
    • 2. Average number of persons from the most recent one year with certified records of employer contribution and employee contribution in accordance with Article 3, Paragraph 1, Clause 11 and 12 of「National Pension Act」 (excluding individually insured persons in accordance with Article 9 of the same act)
    • 3. Average number of persons from the most recent one year with certified records of insurance contributions in accordance with Article 69 of「National Health Insurance Act」 (excluding individually insured persons in accordance with Article 6 of the same act)
    • – As of the application date, a corporation with a foreign investment ratio of over 30 percent
    • ※ Excluding shares (stocks) of foreign companies held by Korean nationals and corporations
    • – Companies that completed education and training at qualified job training institutions, as per the Vocational Education and Training Promotion Act, for new employees hired in 2016

■ Subsidy amount

  • ○ Up to KRW 400 million per company (Maximun KRW 200 million for employment subsidy + Maximun KRW 200 million for education and training subsidy)
    • – For each employee exceeding 10 newly hired employees: up to KRW 1 million per employee for up to six months
  • ○ Total subsidy budget: KRW 480 million
  • ※ Even if the number of applicants exceeds the budget amount, the provided support must remain within the budgetary limit.

■ Application

  • ○ Period: February 16 – April 28, 2017
  • ○ Method: In person or via regular mail or email (valid if postmarked by deadline)
  • ○ Submitting location: Investment Promotion Division, Economic Planning Headquarters, Seoul Metropolitan Government
    • – Telephone: 02-2133-5356 (manager in charge of subsidy)
    • – E-mail : ks.moon@seoul.go.kr
    • – Address: Investment Promotion Division, 7th floor, 21 Mugyo-ro, Jung-gu, Seoul (Mugyo-dong, The Exchanges Seoul Building)
  • ○ Documents to be submitted
    • – A copy of application for subsidy Appendix Attached Form No. 2
    • – A copy of regular employment status report Appendix Attached Form No. 3
    • – A certified copy of company registry
    • – A printed copy of certificate of foreign-invested enterprise registration
    • – A copy of employment insurance certificate (printout from www.ei.go.kr on the date of application)
    • – A copy of business employment information status (submitted in 2 types: employment status and retired employees) (Printout for each employment condition type (employed/employment terminated) from Business Establishment > Browse Information > Browse Employment Information Status (20103) from total.kcomwel.or.kr on the date of application
    • – A copy of proof of 4 public insurance subscriptions and a list of businesses subscribed to 4 public insurances (printout from www.4insure.or.kr on the date of application)
    • – A printed copy of income tax withholding report (Jan. – Dec 2015, Jan. – Dec 2016)
    • – A printed copy of list of employees (Jan. – Dec. 2015, Jan. – Dec. 2016)
    • ※ Date of start of employment, gender, name and citizenship status (Korean/foreigner) need to be specified
    • – A printed copy of foreign investment declaration (within the last five years) and proof of deposit of funds
    • – A copy of financial statements of foreign-invested enterprise
    • – Company introductory letter (including results of investments from foreigners in the past 5 years and future investment plans (up to 2019)
    • – A copy of proof of building usage right (rental agreement, etc.)
    • – A copy of proof of training details and payment for education and training subsidy
    • – Personal details of the applicant
    • ‧ Foreigners: Certificate of domestic residence, phone number (mobile, etc.), alien registration number
    • ‧ Domestic nationals: Resident registration registry (abstract), phone number (mobile, etc.)
    • ※ Additional documents may be requested if necessary.

■ Fulfillment of conditions

  • ○ A separate account to receive and spend the subsidy should be set up, and be used only for personnel expenses (employee salary, bonus, welfare expenses, etc.).
  • ○ For the first three years including the year in which a subsidy is applied for, a company receiving the subsidy shall maintain the number of regular employees and more than 30% of foreign investments as the previous year of subsidy application (2016)
    • ※ In the case one of the following occurs, the entirety or portion of a subsidy that has been decided to be issued may be cancelled and, according to this cancellation, the subsidy is to be rescinded
    • – If the above mentioned conditions for subsidy support are violated
    • – If a subsidy is received through a false registration or other illegal meansv
    • – Relocation of business place to other cities or provinces

■ Others

  • ○ For further inquiries, please contact an officer with the Investment Promotion Division of the SMG. (☏02-2133-5356, ks.moon@seoul.go.kr)

 

Standard classification of new growth industries
to support foreign-capital invested companies in Seoul

Category Industry Code and Name
1. IT convergence 261 Semiconductor manufacturing industry
262 Electronic part manufacturing industry
263 Computer and peripheral device manufacturing industry
264 Communication and broadcasting equipment manufacturing industry
265 Video and sound device manufacturing industry
2918 Office machinery and device manufacturing industry
58221 System software development and supplying industry
58222 Applied software development and supplying industry
62010 Computer programming service industry
62021 Integrated computer system counseling and establishment service
62022 Computer facility management industry
62090 Other information technology and computer operation-related service industry
63111 Data processing business
63120 Portal and other Internet information media service industry
63991 Database and online information provision industry
63999 Other information service industry
2. Digital contents industry 33402 Video game machine manufacturing industry
58211 Online and mobile gaming software development and supplying industry
58219 Other gaming software development and supplying industry
59111 General film and video production industry
59112 Animated film and video production industry
59113 Commercial film and video production industry
59114 Television program production industry
59120 Film, video and television program production-related service industry
59130 Film, video and television program distribution industry
59201 Music and other audio publication industry
60221 Program supplying industry
60222 Cable broadcasting industry
60229 Satellite and other broadcasting industry
63910 News service industry
73901 Management industry
90110 Performance facility operation industry
90121 Theater organization
90122 Dance and music organization
90123 Other performance organizations
90191 Performance planning industry
90192 Performance and production-related agency industry
90199 Other creation and art-related service industry
3. Green industry 28111 Motor and generator manufacturing industry
28122 Switchboard and electric automatic control panel manufacturing industry
28201 Primary battery manufacturing industry
28202 Storage battery manufacturing industry
28410 Bulb and lamp manufacturing industry
28423 Exhibit and advertisement lighting device manufacturing industry
35119 Other development industry
29174 Gas filter manufacturing industry
29175 Liquid filter manufacturing industry
38110 Non-designated waste collection and transport industry
38120 Designated waste collection and transport industry
38130 Construction waste collection and transport industry
38210 Non-designated waste processing industry
38220 Designated waste processing industry
38230 Construction waste processing industry
38301 Metallic material recycling industry
38302 Non-metallic material recycling industry
3900 Environment purification and restoration industry
41224 Waste processing and pollution prevention facility construction industry
42110 Building and structure dismantling construction industry
46791 Recycled material collection and sales industry
72122 Environment consulting and related engineering service industry
4. Business service industry 70 Research and development
711 Law-related service industry
712 Accounting and tax investigation-related service industry
713 Advertising industry
714 Market research and public survey industry
7152 Non-financial holding company
7153 Financial consulting and public relations service industry
72111 Architectural design-related service industry
72112 Urban planning and gardening design service industry
72121 Structural and civil engineering service industry
72129 Other engineering service industry
729 Other scientific technology service industry
73909 Other professional science and technology service industry
857 Educational support service industry
75320 Security system service industry
5. Fashionㆍdesign 73201 Interior design industry
73202 Product design industry
73203 Visual design industry
73209 Other professional design industry
6. Finance industry 64121 Domestic bank
64122 International bank
64131 Credit union
64132 Mutual savings bank
64139 Other savings institution
64201 Asset investment company
64209 Other investment agency
64911 Financial leasing industry
64912 Development finance agency
64913 Credit card and installment finance industry
64991 Fund management industry
64992 Financial holding company
64999 Other non-classified finance industry
69400 Intangible property right leasing industry
65110 Life insurance industry
65121 Damage insurance industry
65122 Surety insurance industry
65131 Health insurance industry
65139 Industrial accident and other social security insurance industry
65200 Reinsurance industry
66121 Stock brokerage industry
66122 Futures brokerage industry
66191 Securities management and storage industry
66192 Investment consulting industry
66201 Damage assessment industry
66202 Insurance agency and brokerage industry
66209 Other insurance and pension-related service industry
7.Tourism convention 55111 Hotel industry
55113 Resort condominium management industry
55119 Other tourism accommodations operation industry
752 Travel agency and other travel assistance service industry
91239 Other water amusement service industry
91210 Amusement and theme park operation industry
73902 Translation and interpretation service industry
75992 Exhibit and event agency industry
8. Biomedical 21101 Pharmaceutical compound and antibiotic manufacturing industry
21102 Biological agent manufacturing industry
21210 Completed medicine manufacturing industry
21220 Oriental herbal medicine manufacturing industry
21230 Animal medicine manufacturing industry
21300 Medical supply and other medical-related product manufacturing industry
27111 Radiation device manufacturing industry
27112 Electrical diagnosis and treatment device manufacturing industry
27191 Dental device manufacturing industry
27192 Orthopedic and body-correcting device manufacturing industry
27199 Other medical device manufacturing industry
86101 General hospital
86102 Hospital