The Korean government is set to be able to provide more financial and administrative support to foreign companies and individuals investing in Korea, after a revision in the Foreign Investment Promotion Act passed the National Assembly last Friday, reported the JoongAng Daily.
Highlights of the revision include:
- Increasing the maximum period that foreign companies can lease state and public land to 50 years (currently 20 years).
- The minimum annual commission rate on land leases will drop to 1% (down from 5%).
- No monetary threshold for government support (previously US$10 million minimum investment required for cash grants).
- Financial support for investors if they hire at least five local researchers (down from a minimum of 10).
The ministry said the revision will likely be approved by the cabinet next month and take effect in October.
For more information on Korea’s foreign investment regulations and incentives check out the Invest KOREA investment guide here.
(Source: JoongAng Daily)
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