Plan of Subsidy Support for Foreign-Invested Enterprises in 2018
In accordance with Article 14, Paragraph 4 of the Foreign Investment Promotion Act (FIPA), Article 20, Paragraph 4 of the FIPA Enforcement Decree, Articles 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 2018. Eligible companies are kindly requested to submit an application for subsidy in accordance with the following.
March 7, 2018
Mayor of Seoul Metropolitan City
- □ Eligibility period: January 1, 2017 to December 31, 2017
- □ 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 (2016) through new recruitment in 2017 (or, companies whose total number of regular employees is more than 10 for those newly founded in 2017) ※ 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 2017.
- □ Subsidy amount
- ○ Up to KRW 400 million per company (Maximum KRW 200 million for employment subsidy
- + Maximum 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 350 million
- ※ Even if the number of applicants exceeds the budget amount, the provided support must
- □ Application
- ○ Period: March 7 to May 4, 2018
- ○ 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 : email@example.com
- - Address: Investment Promotion Division, 7th floor, 21 Mugyo-ro, Jung-gu, Seoul 04520(Mugyo-dong, The Exchange Seoul Building)
- ○ Documents to be submitted
- □ 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 (2017).
- ※ 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 means; or
- - Relocation of business place to other cities or provinces.
- □ Others
- ○ For further inquiries, please contact an officer at the Investment Promotion Division of the SMG. (☏02-2133-5356, firstname.lastname@example.org)
★2018Attachment(standard classification)_NO.1 ★2018Attachment form No.2 & No.3_HP