(1) If a foreigner makes any of the following foreign investments at least at the foreign investment ratio prescribed by Presidential Decree, the State or the competent local government may provide the foreigner with cash grants required for the uses prescribed by Presidential Decree, including the creation or extension of factory facilities, and research and development, taking into account whether the relevant foreign investment accompanies high technology, the effect of technology transfer, the scale of job creation, whether the foreign investment overlaps any domestic investment, the propriety of the location in which the foreign investment is made, etc.: <Amended on Apr. 5, 2010; Jan. 28, 2015; Dec. 31, 2019; Feb. 4, 2020; Jun. 13, 2023>
1. Where the foreigner installs a new factory facility or expands an existing facility (referring to a place of business in cases of any business other than the manufacturing business) in order to run the business provided in Article 121-2 (1) 1 of the Restriction of Special Taxation Act;
2. Where the foreigner installs a new factory facility or expands an existing facility (referring to a place of business in cases of any business other than the manufacturing business) in order to run the business of advanced technology and advanced products under Article 5 of the Industrial Development Act;
3. Where the foreigner installs a new factory facility or expands an existing factory facility in order to produce materials, components, and equipment defined in subparagraphs 1 and 2 of Article 2 of the Act on Special Measures to Strengthen Competitiveness and Stabilize Supply Chain of Materials, Components, and Equipment Industries as prescribed by Presidential Decree;
4. Where the foreigner installs a new factory facility or expands an existing factory facility (referring to a place of business in cases of any business other than the manufacturing business) which creates new employment exceeding the number of regular workers prescribed by Presidential Decree;
5. Where the number of regular employment of full-time researchers is five or more persons, consisting of persons holding at least a master's degree in a field related to the business provided in Article 121-2 (1) 1 of the Restriction of Special Taxation Act, the business of advanced technology and advanced products under Article 5 of the Industrial Development Act, or the business of materials and components under subparagraph 1 of Article 2 of the Act on Special Measures to Strengthen Competitiveness and Stabilize Supply Chain of Materials, Components, and Equipment Industries (hereafter in this subparagraph referred to as "business"), or persons holding a bachelor's degree in a field related to such business with at least three years’ research experience, which meets any of the following requirements:(a) Where the foreigner installs a new research facility or expands an existing research facility in order to conduct research and development activities for the relevant business;(b) Where a non-profit corporation that has received contributions pursuant to Article 2 (1) 4 (c) newly installs or expands research facilities;
6. Where it is an investment that has a large effect on the domestic economy for its amount, for which the Foreign Investment Committee deems it necessary to provide cash grants in accordance with the standards prescribed by Presidential Decree with respect to the requirements for foreign investors, etc.
(2) The amount of cash grants referred to in paragraph (1) shall be determined after negotiations with the relevant foreigner and deliberation by the Foreign Investment Committee.
(3) Matters necessary for the methods, procedures, etc. for providing cash grants under paragraph (1) shall be prescribed by Presidential Decree.
(4) In cases of cash grants under paragraph (1), the local government may by ordinance prescribe matters necessary for the determination on the provision of cash grants, the methods for calculating limits on cash grants, the procedures for negotiating the investment support with foreigners, and other similar matters, except as provided in paragraph (3).
(5) Where an applicant for cash grants under paragraph (1) files the application by fraud or other improper means or any other ground prescribed by Presidential Decree occurs, the State or the local government shall cancel or revoke the provision of cash grants or reduce or recover the amount of cash grants, after deliberation and decision by the Foreign Investment Committee. <Added on Feb. 4, 2020>[This Article Wholly Amended on Jan. 30, 2009]