ΆΓ  Financial Incentives for Foreign Direct Investment

The Digital Chosun 2000.12.20

The government has adopted measures to attract foreign direct investment ever since the financial crisis three years ago, including the Foreign Investment Promotion Law of 1998 in which it provided foreign investors with complete administrative support. A number of benefits such as financial aid are available for foreign firms with an investment ratio of over one third, calculated by dividing the foreign investment amount by the total amount of capital, or simply foreigners who are the largest shareholder of a domestic company.

The government gives financial aid based on several other factors such as the foreign company's performance and its contributing economic value in the region it's investing in. Generally the government provides 40% of total assistance money in the Seoul metropolitan area and 50% in other regions. Financial aid is given to foreign companies residing in foreign investment zones, or national and regional industrial complexes.

Foreign firms in the high-tech and manufacturing sectors are also eligible to be exempt from paying rental fees. Other assistance includes financial help in construction and development costs incurred in foreign investment zones.

Foreigners residing within the zone can receive medical, educational and residential facilities support, according to decisions made by the Foreign Investment Committee, together with cover for education and training costs for workers.

(Arirang TV)