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Sejong City provides investing companies with various incentives

Providing subsidies to promote investment in rural areas

  • Providing national fund subsidy (Basis: Announced by the Ministry of Trade, Industry and Energy)
    • Supporting companies to relocate from the metropolitan area
      • In cases where a company which has been operated for three years in the metropolitan area with 30 or more permanent employees relocated all its head office, factory and research institute, respectively
    • Supporting companies to return to Korea
      • In cases where a company which has operated the same type of business for two years or more without a domestic place of business, or a company has had a domestic place of business and 30 or more employees for a year before they ended, reassigned or reduced their overseas business place, or a company has 30 employees after the return
    • Supporting local companies in the Kaesong Industrial District
      • In cases where a company which has been operated for three years in the metropolitan area with 30 or more permanent employees operates the same type of business from Kaesong Industrial District
    • Supporting new and expanded companies
      • In cases where a company has operated business for three years and over as a regional leading or region-focused business type, or in case where a small- and mid-sized or senior company with ten or more permanent employees makes new investments of one billion won and over
Providing subsidies to promote investment in rural areas table
Category Company relocating from metropolitan area, Company returning to Korea, Local company at Kaesong Industrial District New and expanded companies Matching ratio
Large company Senior company SME Large company Senior company SME
Location subsidy - Within 20% of equipment investment Within 40% of equipment investment       75:25
(MAX 8 billion)
Investment subsidy Within 9% of equipment investment Within 17% of equipment investment Within 22% of equipment investment Within 9% of equipment investment Within 17% of equipment investment Within 22% of equipment investment

Exemption of national and local taxes

Exemption of national and local taxes table
Corporate tax Exemption by 100% for 7 years, 30% for the next 3 years (Metropolitan area preventing overcrowded city → Other than regional area)
Acquisition tax Exemption (Metropolitan area preventing overcrowded city → Other than regional area or companies residing at the industrial complex)
Property tax Exemption by 100% for 5 years, 50% for the next 3 years (Metropolitan area preventing overcrowded city → Other than regional area)

Supporting SMEs with policy funds

Supporting SMEs with policy funds table
Category Target and limit  Loan interest rate Loan period
Funds for opening business and raising competitiveness 800 million won and less in facility funds 4.0% (Variable interest rate) Within 8 years 
400 million won and less in operational funds (payable in five years with a three-year grace period)
Funds for innovating SMEs 500 million won and less in facility and operational funds 3.1% (Variable interest rate) Within 5 years 
(payable in five years with a three-year grace period)
Funds for corporate revival 400 million won and less in facility and operational funds  2.6% (Variable interest rate) Within 3 years 
(payable in five years with a three-year grace period)
Funds for stabilizing business management 300-500 million won and less in operational funds 2.0-3.0% in Contracted interest rate between banks (Variable interest rate) (Maintaining interests) Paying five years at once with a two-year grace period