Regulation no. 2653 (partly amended on February 1, 2007)
Regulation no. 2685 (entirely revised on February 15, 2008)
Regulation no. 2728 (partly amended on January 1, 2009)
Regulation no. 2740 (partly amended on April 15, 2009)

Chapter 1. General Provision

Article 1 (Purpose)

This Regulation shall stipulate issues associated with the Gwangju Metropolitan City Ordinance on Investment Promotion (hereinafter referred to as the "Ordinance") and cases required to enforce the Ordinance.

Article 2 (Definition)

• ① "The Business Service Industry"prescribed in Article 2.4 of the Ordinance shall refer to computer system design, software development, game software development, database management, online information provision, medical and pharmaceutical business, engineering, technology R&D, machinery design, electric and electronic engineering services, product design, telemarketing services among the businesses described in the business service sector of the Korea Standard Industrial Classification, and five-star hotel business prescribed in the Tourism Promotion Act. <Amended on January 1,2009>
• ② "Existing Invested Enterprises"defined in Article 2.9 of the Ordinance shall refer to companies that have operated business in the City for more than three years after the initial date of business. <Newly Established on January 1, 2009>

Chapter 2. Establishment and Management of Investment Promotion Committee

Article 3 (Investment Promotion Committee)

• ① The Chairman stated in Article 5 of the Ordinance shall represent the Committee and govern the general affairs of the Committee. If the Chairman is not able to perform his duty, the Vice Chairman shall substitute for the Chairman.
• ② The chairman shall inform the date, location, and purpose of the meeting through a written notice at least three days before the meeting, if he or she is to convene a meeting, barring special occasions that require urgency.
• ③ In case of emergency or for inevitable reasons, the Chairman may determine or deliberate on proposed bills by letter instead of convening a meeting.
• ④ The Director of the Committee shall document and provide minutes on the following items, and inform the Chairman whenever the minutes are recorded.
• 1. Date and venue of the meeting
  2. List of Committee members present and participants
  3. Issues up for discussion and progress of the meeting
  4. Taking points of members or participants
  5. Other important issues
     
     
• ⑤ The Chairman may have related public officials or experts attend the meeting or submit relevant documents, if necessary for the issues deliberated on the Committee.
• ⑥ Other requirements for management of the Committee that are not prescribed in this Regulation shall be severally determined by the Chairman following the deliberation by the Committee.

Article 4 (Advisory Panel for Investment Promotion)

• ① Gwangju Metropolitan City Investment Promotion Advisory Panel (hereinafter referred to as the "Advisory Penal") prescribed in Article 8 of the Ordinance shall be composed of 20 or fewer members, who shall be nominated by the Mayor and fall under the any of the following categories:
• 1. Expert in investment groups
  2. Professors including full-time lecturers in the field of investment promotion
  3. Executives of an investment promotion agency or investment promotion organization
  4. Others recognized for vast experience or expertise in investment promotion② The Advisory Panel shall offer advice and answer the Mayor's inquiry about investment promotion, engage in investment promotion activities, and collect and provide relevant information.

Article 5 (Honorary Overseas Investment Promotion Consultant))

• ① The Mayor shall nominate and appoint 20 or fewer Honorary Overseas Investment Promotion Consultants in accordance with Article 9 of the Ordinance, who falls under any of the following categories:
• 1. Overseas Koreans working in major cities worldwide in strategic industries of Gwangju
  2. Professors, researchers working overseas
  3. Senior members of Overseas Gwangju Hometown Associations
  4. Foreign businessmen
  5. Others working overseas who are recognized for vast experience or expertise in investment promotion
• ② Overseas Investment Promotion Consultants shall offer advice and answer the Mayor's inquiry about foreign investment promotion, engage in investment promotion activities, and collect and provide relevant information.
• ② Other issues associated with Overseas Investment Promotion Consultants shall be severally determined by the Mayor.

Article 6 (Organization of Working Level Consultative Council)

• ① The Working Level Consultative Council prescribed in Article 10 of the Ordinance shall consist of 20 or fewer members from regional investment promotion agencies. The Council shall support the following activities:
• 1. Collection, analysis, and exchange of information on investment
  2. Investment promotion activities
  3. Management of organic cooperation with relevant investment promotion agencies, etc.
• ② The Working Level Consultative Council shall include a Chairman, Vice Chairman, and Director. The Chairman shall head the Bureau of Investment Promotion, and the Vice Chairman and Director shall be nominated among the members of the Working Level Consultative Council.

Chapter 3. Supports for Invested Enterprises

Article 7 (Eligibility for Subsidy Grant)

"A company severally prescribed in the Enforcement Regulations" in Article 18.1.4 of the Ordinance shall fall on any of the following items:

1. Venture companies prescribed in Article 2 of the Special Act on Venture Company Development
2. Companies certified with Inno-Biz by the Small Business Administration in compliance with Article 15 of the SME Technology Innovation Support Act
3. Companies in the photonics industry prescribed in Article 2 of the Gwangju Metropolitan City Ordinance on Photonics Industry Development
4. Parts and materials manufacturers and production equipment manufacturers prescribed in Article 2 of the Special Act on Development of Parts and Materials Enterprises
5. Industrial design companies prescribed in Article 2 of the Industrial Design Promotion Act
6. Nano technology companies prescribed in Article 2 of the Nano Technology Development Promotion Act
7. Companies in the culture industry as stated in Article 2 of the Basic Act on Culture Industry Promotion
8. Information processing, other computer operation business, research and development companies in the Korea Standard Industrial Classification

Article 8 (Site Location Subsidy)

• ① Site location subsidy stated in Article 19 of the Ordinance may be provided to cover up to 20 percent of the land purchasing price.
• ② Notwithstanding the provision of Paragraph ①, the City may finance 70 percent of the land purchasing cost for companies relocated from the Seoul Metropolitan area, which are eligible for central government support. <Amended on April 15, 2009>
• ③ Anyone who wishes to receive site location subsidy shall submit to the Mayor an application in the form of Annex 1 within two years of the initial business day, provided that companies relocated from the Seoul Metropolitan area shall submit the application within a year after the contract has been signed to acquire factory sites in the City.

Article 9 (Investment Support Subsidy)

• ① The Mayor may provide investment support subsidy to finance up to 5 percent of the excess amount of investment, if the invested amount exceeds KRW 2 billion. <Amended on April 15, 2009>
• ② For companies relocated from the Seoul Metropolitan area eligible for central government support as stated in Paragraphs ①, ④. ⑤ may fund up to 20 percent of the investment. <Amended on April 15, 2009>
• ③ The Mayor may finance up to 30 percent of facility and equipment installment cost for businesses seeking to establish and expand telemarketing services, and the subsidy may amount up to KRW 100 million per company.
• ④ The Mayor may finance up to 5 percent of the subsidy for the excess amount over KRW 1.5 billion in accordance with Article 18.1.4 of the Ordinance.
• ⑤ The Mayor may finance up to 5 percent of the subsidy for the excess amount over KRW 1 billion in compliance with Article 18.1.5 of the Ordinance.
• ⑥ Anyone who wishes to receive investment support subsidy shall submit to the Mayor an application in the form of Annex 2 or Annex 2-1 within two years of the initial business day, provided that companies relocated from the Seoul Metropolitan area shall submit the application within a year after the construction of their work sites in Gwangju has been approved by the municipal government.

Article 10 (Employment Subsidy)

• ① Employment subsidy stated in Article 21 of the Act shall be offered to a company registered as a foreign-invested company In compliance with the provision of Article 21.1 of the Foreign Investment Promotion Act (hereinafter referred to as the "Act") or domestic company that build new factories. The Mayor may provide a monthly subsidy of up to KRW 600,000 per capita for each extra employee for up to six months, if the invested enterprise hires more than 20 full-time employees who reside in the City. <Amended on April 15, 2009 >
• ② The Mayor may provide a monthly subsidy of up to KRW 600,000 per capita for each extra employee for up to six months under Article 18.1.4 of the Ordinance, if the invested enterprise hires more than 15 full-time employees who reside in the City. <Amended on April 15, 2009>
• ③ The Mayor may provide a monthly subsidy of up to KRW 600,000 for each extra worker for up to six months in accordance with Article 18.1.5 of the Ordinance, if the invested enterprise hires more than ten full-time employees who reside in the City. <Amended on April 15, 2009>
• ④ Anyone who wishes to receive employment subsidy shall submit to the Mayor an application in the form of Annex 3 or Annex 3-1 within three years of the initial business day.
• ⑤ The enterprise may apply for additional support within the application period, if the number of full-time employees has increased after receiving employment subsidy.

Article 11 (Education and Training Subsidy)

• ① The Mayor may offer a monthly education and training subsidy, stipulated in Article 22 of the Ordinance, of up to KRW 600,000 per capita for up to six months, to an enterprise that newly hires 20 or more employees and train them. <Amended on April 15, 2009>
• ② The Mayor may offer a monthly subsidy of up to KRW 600,000 per capita for up to six months under Article 18.1.4 of the Ordinance, if the enterprise hires more than 15 new employees and train them. <Amended on April 15, 2009>
• ③ The Mayor may offer a monthly subsidy of up to KRW 600,000 per capita for up to six months under Article 18.1.5 of the Ordinance, if the enterprise hires more than 10 new employees and train them. <Amended on April 15, 2009>
• ④ Education and training institutes shall fall under any of the following categories and training methods shall include in-house education, commissioned education, and remote education.
• 1. Education and training facilities set up by national, municipal, public organizations (Human Resources Development Service of Korea, state-funded agencies, Korea Employment Promotion Agency for the Disabled, Korea
  Workers' Compensation and Welfare Service, the Korean Chamber of Commerce and Industry) under Article 2.3 of the Act on the Development of Occupational Abilities of Workers
  2. Vocational training facilities or educational institutes of college levels
  3. ther institutes recognized by the Mayor⑤ Anyone who wishes to receive education and training subsidy shall submit to the Mayor an application in the form of Annex 4 or Annex 4-1 within three years of the initial business day.

Article 12 (Regional Elective Subsidy)

• ① A foreign-invested company that makes foreign investment worth over USD 1 million in accordance with Article 23 of the Ordinance shall be eligible for the regional elective subsidy, which will be offered within 10 percent of the total sum of foreign investment with up to KRW 200 million for each company.
• ② Anyone who wishes to receive regional elective subsidy shall submit to the Mayor an application in the form of Annex 5 within two years of the initial business day.

Article 13 (Subsidies for Consulting Services)

• ① The Mayor may provide subsidy for consulting services for the investment consulting in accordance with Article 24 of the Ordinance to finance 5 percent of the total sum of investment with up to KRW 100 million for each company.
• ② Consulting companies shall be business and management consulting service providers prescribed in the Korean Standard Industrial Classification.
• ③ Consulting services shall be directly associated with establishment, relocation of invested enterprises, or factory establishment including business feasibility test, market analysis, business proposals.
• ④ Anyone who wishes to receive subsidy for consulting services shall submit to the Mayor an application in the form of Annex 6 or Annex 6-1 within two years of the initial business day.

Article 14 (Special Support for Large Corporate Investors)

• ① The Mayor may provide special financial support to large corporate investors under Article 26 of the Ordinance. Investment eligible for the special financial assistance are stated as follows, provided that various subsidies prescribed in Article 8 to Article 13 and other financial support shall not be provided with other subsidies
• 1. Investment in factory site location or facilities
  2. Infrastructure building cost for outside the factories and facilities in a massive investment
• ② Any corporate investor who wishes to receive special support subsidy shall submit to the Mayor an application in the form of Annex 7 with required documents within two years of the initial business day.

Article 15 (Improvement of Living Conditions for Foreign Nationals)

Anyone who wishes to receive subsidy to improve living conditions for foreign nationals in compliance with Article 28 of the Ordinance shall submit to the Mayor an application in the form of Annex 8 within two years of the contract to purchase or lease land and buildings has been signed.

Article 16 (Deliberation on Subsidy Provision)

• ① The Mayor shall determine whether to provide the subsidy after deliberation on the business plan and eligibility of an enterprise that has submitted an application for subsidy grant.
• ② The amount of subsidy and the timing of execution of subsidies shall be determined after deliberation by the Gwangju Metropolitan City Investment Promotion Committee.

Chapter 4. Follow-up Management of Invested Enterprises

Article 17 (Follow-up Management of an Invested Enterprise)

• ① The Mayor may be informed about a subsidy recipient on the following items under Article 30 of the Ordinance:
• 1. Progress of the business
  2. Whether it is subject to modification, cancelation, or redemption of subsidies
  3. Other issues deemed necessary to achieve the goal of the business
     
     

• ② The Mayor may fully or partially modify or cancel the provision of subsidies due to changes in circumstances, even after the provision has already been confirmed.

• ③ The Mayor may have related public officials or experts submit relevant documents or examine the case, if necessary for the follow-up management of subsidy recipients.

Chapter 5. Criteria on Incentive Provision

Article 18 (Provision of Incentive, etc.)

• ① Criteria on incentive provision as stipulated in Article 32.1 of the Ordinance except for incentive to public officials shall be as follows:
• 1. 1. In the case of inducing foreign capital investment worth between USD 3 million and USD 10 million on an annual basis or domestic capital investment worth between KRW 3 billion and KRW 10 billion: incentive worth less than 7/10,000 of investment <Amended on April 15, 2009>
  2. 2. In the case of inducing foreign capital investment worth between USD 10 million and USD 30 million on an annual basis or domestic capital investment worth between KRW 10 billion and KRW 30 billion: incentive worth less than 6/10,000 of investment
  3. In the case of inducing foreign capital investment worth between USD 30 million and USD 50 million on an annual basis or domestic capital investment worth between KRW 30 billion and KRW 50 billion: incentive worth less than 5/10,000 of investment
  4. In the case of inducing foreign capital investment worth between USD 50 million and USD 100 million on an annual basis or domestic capital investment worth between KRW 50 billion and KRW 100 billion: incentive worth less than 4/10,000 of investment
  5. In the case of inducing foreign capital investment worth more than USD 100 million on an annual basis or domestic capital investment worth more than KRW 100 billion: incentive worth less than 3/10,000 of investment
• ② Criteria on special promotion, pay raise, and incentive provision for public officials who induced investment in compliance with Article 32.2 of the Ordinance shall be as follows, provided that incentive to be provided shall not exceed KRW 20 million.
• 1. In the case of inducing foreign capital investment worth between USD 3 million and USD 10 million on an annual basis or domestic capital investment worth between KRW 3 billion and KRW 10 billion: incentive worth less than 4/10,000 of investment
  2. In the case of inducing foreign capital investment worth between USD 10 million and USD 30 million on an annual basis or domestic capital investment worth between KRW 10 billion and KRW 30 billion: incentive worth less than 3/10,000 of investment
  3. In the case of inducing foreign capital investment worth between USD 30 million and USD 50 million on an annual basis or domestic capital investment worth between KRW 30 billion and KRW 50 billion: special pay raise and incentive worth less than 2/10,000 of investment
  4. In the case of inducing foreign capital investment worth between USD 50 million and USD 100 million on an annual basis or domestic capital investment worth between KRW 50 billion and KRW 100 billion: special promotion and incentive worth less than 1/10,000 of investment
  5. In the case of inducing foreign capital investment worth more than USD 100 million on an annual basis or domestic capital investment worth more than KRW 100 billion: special promotion and incentive worth less than 5/10,000 of investment
• ③ Criteria and procedures for incentive provision shall be severally determined by the Mayor.

Article 19 (Application of Other Regulations)

Provisions of the Enforcement Regulations of Gwangju Metropolitan City Ordinance on Subsidy Management shall apply to issues that are not stipulated in this Regulation with regard to execution or settlement of subsidies.

Addendum

• ① (Date of Enforcement) This Regulation shall be effective from the date of its promulgation.
• ②(Interim Measure for Invested Enterprise) Provision of subsidies to corporate investors that have already launched business before the enforcement of this Regulation shall comply with the provisions of previous regulations.

Addendum <Regulation no. 2728 established on January 1, 2009>

This Regulation shall be effective from the date of its promulgation.

Addendum <NRegulation no. 2740 established on April 15, 2009>

This Regulation shall be effective from the date of its promulgation.