The Seoul Metropolitan Government will pay employment subsidies amounting to a total of 1 billion won to foreign invested companies that help invigorate the regional economy by creating jobs.
Companies eligible for employment subsidies are foreign invested firms in the Seoul region that hired 20 or more employees in 2010 from the previous year. Companies, in which foreigners control more than 30% in shares, and which have yet to reach five years since registering as foreign invested firms, are eligible to apply.
The Seoul Metropolitan Government designated business services, finance, tourism and conventions, IT convergence, biomedical, green growth, digital contents, and design and fashion as its eight new growth industries, and is aggressively cultivating these sectors.
In addition to paying out employment subsidies, the city government will pay for the, “education and training subsidies,” for the members of staff from foreign invested firms who were provided with education and training at vocational training centers. This is for those from foreign invested firms whose full-time employees were hired in addition within five years after the firm’s initial foreign investment.
The Seoul Metropolitan Government has paid a total of 2.435 billion won to 32 foreign invested firms through the “Employment subsidy program for foreign invested companies,” which it was implemented in 2005.
Currently, the city government has 7,500 foreign invested companies, which account for more than 50% of all foreign invested firms in Korea. More than 80% of them are located in seven districts, namely those in downtown (Jongno-gu, Jung-gu), Gangnam (Seocho-gu, Gangnam-gu), and sub-downtown (Yongsan-gu, Mapo-gu, Yeongdeungpo-gu).
According to the Korea Trade-Investment Promotion Agency, foreign invested companies each have an average of 292 employees. The figure is 62% larger than the 179 people, who are hired by domestic companies of comparable sizes.
A foreign invested company that seeks to receive employment subsidies is requested to submit the application form and other documents to the Seoul Metropolitan Government’s Investment Promotion Division (Korea Press Center 10th Floor, Taepyeongno 1(il)-ga, Jung-gu, Seoul, +82-2-2171 -2842) in person, or by postal mail during September 15th to the 30th. Companies that will receive employment subsidies through this year’s program will be announced in October. For details, please refer to the Seoul Metropolitan Government’s website at (www.seoul.go.kr).