Local Investment Promotion Subsidy Support Limit Increased from 10 Billion KRW to 15 Billion KRW

From February, the maximum subsidy that local investment companies can receive from the government will increase to 15 billion KRW.

On the 30th, the Ministry of Trade, Industry and Energy announced that it has partially revised the "Standards for National Financial Support for Local Governments to Attract Local Investment Companies (Notice)" and will fully implement it starting next month on the 1st.

To continuously induce large-scale private investment, the Ministry of Trade, Industry and Energy expanded the per-project limit of local investment subsidies from the existing 10 billion KRW to 15 billion KRW. To attract new projects centered on Opportunity Development Zones, the subsidy support rate increment for medium-sized and small enterprises investing in Opportunity Development Zones will also be raised from the existing 5 percentage points to 8 percentage points and 10 percentage points, respectively.

In addition, to respond to the rapidly changing global industrial environment and support the stabilization of supply chains in core industries, leading businesses investing in production facilities for economic security items and services under the Supply Chain Stabilization Support Basic Act will receive an additional 2 percentage points in equipment subsidy support rates. The equipment subsidy support rate for companies investing in long-term unsold industrial complexes will also be increased by 2 percentage points.

Reflecting the difficulties faced by local industrial sites, the subsidy support requirements have also been improved. For example, Company A was restricted from reapplying for subsidies for three years due to failure to meet investment targets caused by the downturn in business conditions due to COVID-19. To resolve such situations, the Ministry of Trade, Industry and Energy decided to ease the restriction period for reapplying for subsidies for companies that fail to meet investment targets due to unavoidable reasons to one year.

Meanwhile, last year, the Ministry supported 54 local investment companies with 224.4 billion KRW (including 339.6 billion KRW in local government funds) in local investment promotion subsidies, inducing a total of 2.4783 trillion KRW in private investment and creating over 3,000 local jobs.

In particular, the Ministry contributed to strengthening the competitiveness of key industries by providing 101.7 billion KRW in national funds to 24 companies in national advanced strategic industries such as semiconductors, secondary batteries, bio, and displays, and 45.3 billion KRW in national funds to 13 companies in the automobile sector, including electric vehicles.

An official from the Ministry of Trade, Industry and Energy stated, "We plan to continuously strive to operate the local investment promotion subsidy system centered on the needs of local governments and companies together with the Korea Industrial Complex Corporation."