Provision of Subsidies

  • Subsidies from National Fund (Ministry of Industry, Trade & Energy Announcement 2018-172 / subsidy within the budget)
  • City fund available: within the budget as specified in Naju City’s Ordinance Promoting Investment
Provision of Subsidies
Category Type of Support Available Subsidy
Big Corporation Mid-Sized Business SME
Moving from Seoul metropolitan region or returning to South Korea Subsidizing site acquisition NA Max 20% of invested fund Max 40% of invested fund
Facility investment Max 11% of invested fund Max 19% of invested fund Max 24% of invested fund
Creation or expansion Facility investment Max 11% of invested fund Max 19% of invested fund Max 24% of invested fund

Exemption and/or Reduction of Taxes

Restriction of Special Taxation Act, Restriction of Special Local Taxation Act

Exemption and/or Reduction of Taxes
Category Available Subsidy
Startup SME or SME venture
  • 50% reduction of corporate tax, income tax for 5 years
  • 75% reduction in acquisition tax until Dec. 31, 2020
  • Property tax exempted for 3 years / 50% reduction for 2 years
SME moving from the overconcentration suppression zones in Seoul metropolitan region (a company moving out of Seoul metropolitan region)
  • Corporate tax: 100% for 7 years and 50% reduction for 3 years thereafter
  • Acquisition tax exempted until Dec. 31, 2021; 100% reduction of property tax for 5 years, and 50% reduction for 3 years thereafter
When buying factory land for factory creation (innovation industrial complex) (tax exemption and/or reduction for industrial complex etc.)
  • 75% reduction of acquisition tax until Dec. 31, 2019
  • 75% reduction of property tax for 5 years from the first applicable date

Supports according as Innovation Industrial Complex is designated as “Local SME Special Support District”

  • Tax benefits : 50% reduction of corporate tax (income tax) for 5 years
  • Loans : preferential loans from Local SME Nurturing Fund and from policy funds
  • Public purchase: products may be put to limited competitive bids and private contracts
  • Preferential treatment with credit guarantee, technology development, consulting provided etc.