This undated photo provided by SK hynix Inc. shows workers at the company’s chip plant in Icheon, south of Seoul.
SEOUL, April 27 (Korea Bizwire) — Foreign investors who make investments in South Korea’s national high-tech strategic technologies, such as semiconductors, batteries, and displays, will be eligible for subsidies.
The Ministry of Trade, Industry and Energy said Wednesday it held a meeting of the foreign investment committee and deliberated and resolved the revision of operational guidelines for a cash support system.
As per this revision, the ratio of cash support for foreign investment in chips, secondary batteries, and displays, the areas defined in the National High-Tech Strategic Industries Special Act, will increase to 50 percent of the investment, and the government spending’s contribution ratio will also be increased by 10 percentage points.
In the case of a preliminary review, foreign-invested companies will be required to submit simplified documents.
The revision will first apply to national strategic technologies, national high-tech strategic technologies, as well as small investments of less than US$5 million.
Moreover, the requirements for investments eligible for subsidies in facility expansion will be eased.
As a result, subsidies will be available for cases where the total floor space is increased through vertical expansion of factory facilities or where new facilities are installed in the idle space of existing buildings.
Kevin Lee (kevinlee@koreabizwire.com)
