The government is significantly relaxing strict support requirements that have hindered local investments by companies. Starting July 20, new subsidiaries and joint ventures will also be eligible for grant support, and benefits will be enhanced for the introduction of domestic equipment.
The Ministry of Trade, Industry and Energy announced that it will implement revised criteria for national financial support for local investment by businesses, aimed at promoting local investments. The local investment promotion grant system provides financial support from both national and local governments for companies relocating from the capital region or investing in local facilities.
A key feature of the revised guidelines is that new subsidiaries and joint ventures will now be eligible for grants. Previously, only companies with at least one year of operation were eligible, making it difficult for newly established entities to qualify. Now, companies with less than one year of operation can also receive support.
Additionally, businesses that lease part of their investment facilities will also be included in the support criteria. The previous regulation that prohibited grant applications for leased facilities has been improved, allowing applications for areas outside the planned leased space.
The requirements for maintaining area and employment levels, which placed excessive burdens on businesses, have also been revised. Previously, all facilities of a company receiving grants were subject to area and employment maintenance obligations. Going forward, only existing facilities in the same industry as the new investment will need to be maintained.
Support measures to strengthen the domestic equipment ecosystem have also been established. If a company introduces domestic equipment for more than 70% of its machinery purchase costs, the grant support rate will be increased by 2 percentage points to encourage the use of domestic equipment. Furthermore, the costs of purchasing used equipment will also be recognized as part of the investment amount.
The revised guidelines will apply to grant applications submitted after July 20. Companies can apply through the local government in their investment area to the Ministry of Trade, Industry and Energy.
A ministry official stated, "We will continue to actively support local investments by businesses while ensuring thorough management of supported companies to drive genuine revitalization of the local economy."
The Ministry of Trade, Industry and Energy announced that it will implement revised criteria for national financial support for local investment by businesses, aimed at promoting local investments. The local investment promotion grant system provides financial support from both national and local governments for companies relocating from the capital region or investing in local facilities.
A key feature of the revised guidelines is that new subsidiaries and joint ventures will now be eligible for grants. Previously, only companies with at least one year of operation were eligible, making it difficult for newly established entities to qualify. Now, companies with less than one year of operation can also receive support.
Additionally, businesses that lease part of their investment facilities will also be included in the support criteria. The previous regulation that prohibited grant applications for leased facilities has been improved, allowing applications for areas outside the planned leased space.
The requirements for maintaining area and employment levels, which placed excessive burdens on businesses, have also been revised. Previously, all facilities of a company receiving grants were subject to area and employment maintenance obligations. Going forward, only existing facilities in the same industry as the new investment will need to be maintained.
Support measures to strengthen the domestic equipment ecosystem have also been established. If a company introduces domestic equipment for more than 70% of its machinery purchase costs, the grant support rate will be increased by 2 percentage points to encourage the use of domestic equipment. Furthermore, the costs of purchasing used equipment will also be recognized as part of the investment amount.
The revised guidelines will apply to grant applications submitted after July 20. Companies can apply through the local government in their investment area to the Ministry of Trade, Industry and Energy.
A ministry official stated, "We will continue to actively support local investments by businesses while ensuring thorough management of supported companies to drive genuine revitalization of the local economy."
* This article has been translated by AI.
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