Subsidy

Subsidy

Division	Targets	Limit	Description
Foreign Investment Company	Companies with 30% or more foreign investment	50% of investment	Location, facility, employment, education and training subsidy
Companies Relocating to Metropolitan Area	Companies that were based on metropolitan area for 3 years or more with 30 or more employees	KRW 10 billion	Location, facility, employment, education and training subsidy
Subsidy for New Investment & Employment	Manufacturing industry for 3 years or more in the province or more with 10 or more employees	KRW 1 billion	KRW 7,200,000/person (KRW 600,000/month, within 12 months)
Provincial Investment Company	Companies with KRW 2 billion or more, and 20 or more new employees	KRW 5 billion	Location, facility, employment, education and training subsidy

Tax Reduction

Tax Reduction

Division	Corporate·Income Tax	Acquisition & Registration Tax	Property Tax
Foreign Investment Company	100% for 5 years, and 50% for subsequent 2 years	Exempted for 15 years	Exempted for 15 years
Company Relocating to Metropolitan Area	100% for 7 years, and 50% for subsequent 3 years	Exempted (by 2009)	100% for 7 years, and 50% for subsequent 3 years
Start-up ventures and start-up SMEs	50% for 5 years	75% Exempted for 4 years	100% exemption for 3 years for direct use (acquisition), 50% reduction for 2 years

SME Fostering Fund and Financial Support

SME Fostering Fund and Financial Support

Division	Fund Type	Description
Provincial Fund	Start-up and Competitiveness Strengthening Fund	SMEs in province Within KRW 1.5 billion to each company (13 facility fund, and 2 operating fund) Facility fund 3-year deposit and 5-year repayment, Operating fund 1-year deposit and 2-year repayment 2.40% per annum (Variable interest)
	Venture Company Fostering Fund	SME venture company, technologically promising SME Within KRW 1 billion to each company (8 facility fund, 2 operating fund) Facility fund 3-year deposit and 5-year repayment, Operating fund 1-year deposit and 2-year repayment 2.50% per annum (Fixed interest)
	SME Distribution Restructuring Fund	SME distributors in province in wholesale & retail industry Within KRW 500 million to each company (400 facility fund, 100 operating fund) Facility fund 3-year deposit and 5-year repayment, Operating fund 1-year deposit and 2-year repayment 2.40% per annum (Variable interest)
Bank Cooperative Loans	Business Stabilization Fund	SME manufacturers, intelligence-based service providers Within KRW 300 million to each company (Within 50% of sales amount) 2-year deposit and bullet repayment or Choose from 2-year deposit or 2-year amortization Bank interest rate in agreement with bank, interest rate and secondary reserve of 1.6% ~ 3.0% per annum