Incentives
Incentives are offered to enterprises investing in Sejong.
Subsidy to promote investment in non-capital areas (maximum amount)
Eligibility
- Enterprises relocating from Seoul National Capital Area, establishing/extending its business establishment outside Seoul National Capital Area, or returning to Korea, etc.
Details
Subsidy to promote investment in non-capital areas (maximum amount)- Category, Large corporation (conglomerate), Mid-sized corporation, Small- and medium-sized enterprise (SME), State funding : Municipal funding
| Category |
Large corporation (conglomerate) |
Mid-sized corporation |
Small- and medium-sized enterprise (SME) |
State funding : Municipal funding |
| Support priority region (Sejong) |
Land investment (-)
Facility investment (up to 11%) |
Land investment (up to 20%)
Facility investment (up to 19%) |
Land investment (up to 40%)
Facility investment (up to 24%) |
75:25 |
| General region |
Land investment (-)
Facility investment (up to 8%) |
Land investment (up to 10%)
Facility investment (up to 11%) |
Land investment (up to 30%)
Facility investment (up to 14%) |
65:35 |
Region near Seoul
National Capital Area |
Land investment (-)
Facility investment (up to 6%) |
Land investment (-)
Facility investment (up to 8%) |
Land investment(9% 이내)
Facility investment (up to 11%) |
45:55 |
The subsidy for land investment is not offered to newly established enterprises or enterprises expanding their businesses. The subsidy is provided for no more than five times the size of the previous plant/factory site.
Areas eligible for assistance in “migration from Seoul National Capital Area”
- Seoul and Incheon (excl. Ganghwa-gun, Ongjin-gun and Incheon Free Economic Zone)
- Gyeonggi-do Province: Uijeongbu, Guri, Namyangju (limited to Hopyeong-dong, Pyeongnae-dong, Geumgok-dong, Ilpae-dong, Ipae-dong, Sampae-dong, Gaun-dong, Suseok-dong, Jigeum-dong and Donong-dong), Hanam, Suwon, Seongnam, Anyang, Bucheon, Gwangmyeong, Gwacheon, Gunpo, Siheung, Ansan, Hwaseong, Uiwang
Application Period
- Within 3 months of reporting the start of construction after the signing of the land purchase agreement for factory/plant construction based on the date on which the application form is received by the MOTIE)
However, in case of applying for the land investment subsidy, the deadline is within 1 year of signing the land purchase agreement
Payment Period
- 100% of the land investment subsidy and 70% of the facility investment subsidy are paid after the applicant has reported on the start of construction, while the remaining 30% of the facility investment subsidy is paid after settlement
Tax Exemptions & Reductions
Enterprises moving from Seoul National Capital Area
Tax Exemptions & Reductions /Enterprises moving from Seoul National Capital Area- National taxes(Corporate Tax), Local taxes(Acquisition Tax, Property Tax)
| National taxes |
Corporate Tax |
- Full exemption for 7 years and 50% reduction for 3 years thereafter
(relocating from the overdensification inhibition area → an area other than the overdensification inhibition area)
- Special cases of taxation in regard to the corporate tax imposed on the capital gains of enterprises from metropolitan areas
(equal installment payment for 5 years after a 5-year deferment)
|
| Local taxes |
Acquisition Tax |
- Full exemption (relocating from the overdensification inhibition area or a metropolitan city → a non-metropolitan area)
However, if the real estate value of the new corporate office (factory/plant) exceeds that of the previous location, the acquisition tax will be imposed on the excess amount
|
| Property Tax |
- Full exemption for 5 years and 50% reduction for 3 years thereafter (relocating from the overdensification inhibition area or a metropolitan city → a non-metropolitan area)
|
Article 60 (Special Taxation for Corporate Tax on Relocating Factories Outside of Large Cities) of the Restriction of Special Taxation Act
Article 79 of (Reductions for Relocating Corporate Offices to Rural Areas) of the Restriction of Special Taxation Act
Article 80 (Reductions for Relocating Factories) of the Restriction of Special Taxation Act
and Article 7 (2) and Article 8 (3) of the Enforcement Rule on the Restriction of Special Taxation Act
Tenant Companies in Industrial Complexes (areas outside Seoul National Capital Area)
Tenant Companies in Industrial Complexes (areas outside Seoul National Capital Area) - Local taxes(Acquisition Tax, Property Tax)
| Local taxes |
Acquisition Tax |
|
| Property Tax |
- 75% reduction for 5 years
|
*This is information in relation to the Ordinance on Reductions Based on Market Place (Article 8-3) and local taxes (acquisition tax and property tax).
Financial Assistance for SMEs (low interest rate loans)
Financial Assistance for SMEs (low interest rate loans): Category; Eligibility & Maximum Limit; Interest Rate; Loan Term
| Category |
Eligibility & Maximum Limit |
Interest Rate |
Loan Term |
| For startups and competitiveness reinforcement |
Facility assistance of up to KRW 2 billion; operating assistance of up to KRW 400 million |
2.98% (variable rate) |
No more than 8 years (equal installment for 5 years after 3-year deferment) |
| Innovative SMEs |
Facility and operating assistance of up to KRW 500 million |
2.48% (variable rate) |
No more than 5 years (equal installment for 3 years after 2-year deferment) |
| Corporate rehabilitation |
Facility and operating assistance of up to KRW 500 million |
2.0% (variable rate) |
No more than 3 years (equal installment for 2 years after 1-year deferment) |
| Management security |
Operating assistance of up to KRW 300~500 million |
Rate agreed upon by banks (variable rate)
plus 2.0 ~ 3.0%p (interest subsidy) |
Paid in full after 2-year deferment |
Contact for application: Nambu (Southern) Office of Chungcheongnam-do Economic Promotion Agency 041-881-5455~6
Financial Assistance for R&D
Eligibility
- • Advanced transportation equipment parts and components, advanced new materials and parts, bio-healthcare, autonomous vehicle-related industries / Up to KRW 300 million ~ 500 million a year for up to 3 years (up to KRW 1.5 billion won in total)
Candidates are selected after a review by the Chungcheongnam-do Industry Evaluation Group of the Korea Institute for Advancement of Technology (KIAT)
Inquiries: KIAT Chungcheongnam-do Industry Evaluation Group 041-415-2170