To Be Designated as an 'Energy-Specialized Company,' Related Sales Must Exceed 50%

Ministry of Trade, Industry and Energy Establishes and Implements 'Operational Guidelines for Designation of Energy Specialized Companies'
Applications Accepted Until the 23rd of Next Month... Designation Certificates to be Issued by the End of March
Benefits Include Local Tax Reductions and Subsidy Preferences Upon Designation

[Sejong=Asia Economy Reporter Joo Sang-don] To be designated as an energy specialized company and receive various benefits such as local tax reductions, the proportion of sales from energy and related industries must exceed 50%.

The Ministry of Trade, Industry and Energy announced that it has established and will implement from the 20th the 'Operational Guidelines for Designation of Energy Specialized Companies' to support companies within energy industry convergence complexes and promote investment attraction.

The designation target for energy specialized companies is companies located within convergence complexes whose sales from energy and related industries account for 50% or more of their total sales. The ministry plans to comprehensively evaluate technological level, management capabilities, and linkage with key energy industries to designate companies that can contribute to the future development of convergence complexes as energy specialized companies.

Once designated as an energy specialized company, benefits include ▲local tax reductions according to the Local Tax Special Cases Act and local government ordinances ▲an additional 2 percentage points in support rate when receiving facility subsidies under the Local Investment Promotion Subsidy ▲and up to 2 bonus points when participating as a lead institution in Ministry of Trade, Industry and Energy research and development (R&D) projects.

The designation process for energy specialized companies will accept applications online for a total of 35 days until the 23rd of next month, followed by document evaluation and on-site inspections if necessary, with designation certificates expected to be issued by the end of March.

Evaluation costs will be supported by the government. All application documents must be submitted electronically.

An official from the ministry stated, "To establish a regional energy industry ecosystem and revitalize convergence complexes, we will continuously pursue institutional improvements such as revising the Convergence Complex Act to expand effective support including tax incentives, special cases for state-owned property, and priority purchasing by public institutions for energy specialized companies." He added, "We plan to expand full-scale support for the creation of convergence complexes, including infrastructure, demonstration research, professional workforce training, and commercialization promotion."