Korea to grant subsidies to foreign companies investing in advanced technologies

[Photo by MK DB]

South Korea will offer up to 50 percent in subsidies to foreign companies that invest in national advanced strategic technologies in sectors such as chips, secondary battery, and display.

The Ministry of Trade, Industry and Energy on Wednesday held a committee meeting to discuss cash incentives for foreign investment in Korea. The ministry expanded the eligibility for cash support by adding foreign investments in the national advanced strategic technology to the list of subsidy recipients. Previously, only investments in research and data centers and national strategic technologies were eligible.

The national advanced strategic technology, which is different from the national strategic technology under the Special Taxation Limitation Act, refers to a group of 15 core technologies related to chips, displays, and secondary batteries. They include the technology of design, processing, and device tech for DRAMs and three-dimensional lamination.

Foreign companies will become eligible for cash subsidies worth up to 50 percent of their total investments in national advanced strategic technology. The government’s share of funding for advanced strategic technology will also be raised by 10 percentage points to 50 percent for investment facilities located in the Seoul Metropolitan area and to 80 percent for those in the rest of the regions in the country.

The ministry will revise related laws to encourage more foreign investments such as by streamlining a preliminary review procedure in a way that enables foreign companies to project the potential amount of subsidies before making investments.