Offers up to 50% cash reimbursement to FDI in strategic industries

On 18 July 2022, the Ministry of Trade, Industry and Energy amended the Foreign Investment Committee (FIC) - approved cash grant program, so as to offer up to 50% cash reimbursement for foreign investment in activities deemed strategically important for the country, such as chips and batteries and vaccines. The Government also increased the State commitment in the foreign investment support fund on such technologies to 50% in the capital and surrounding areas (up from 30%) and to 80% in non-capital areas (up from 60%). Finally, it announced that it will establish clear criteria to select beneficiaries, including quantitative evaluation.

• Type:

  • Promotion and facilitation (Investment incentives)

• Industry:

  • Manufacturing (Manufacture of basic pharmaceutical products and pharmaceutical preparations, Manufacture of fabricated metal products, except machinery and equipment, Manufacture of computer, electronic and optical products, and electrical equipment)

• Sources:

  • Government of Republic of Korea, MOTIE announces amended cash grant program to attract FDI, http://english.motie.go.kr/en/pc/pressreleases/bbs/bbsView.do?bbs_seq_n=1024&bbs_cd_n=2¤tPage=49&search_key_n=&search_val_v=&cate_n=, 19 Jul 2022
  • kedglobal, Korea to raise cash support on foreign investments in key sectors, https://www.kedglobal.com/corporate-investment/newsView/ked202207180007, 18 Jul 2022
  • pulsenews, Korean gov’t to offer up to 50% reimbursement in FDI in strategic industries, https://pulsenews.co.kr/view.php?year=2022&no=632348, 18 Jul 2022