Siheung City revises ordinance to support subsidy of up to 600 million won for investment attraction companies

In the future, companies that establish a new headquarters or research center in Siheung, Gyeonggi Province, or hire new employees above a certain level will receive a subsidy of up to 600 million won.

Siheung City announced on the 4th that it will strengthen the support system for investment companies in the city following the implementation of the 'Complete Amendment to Investment Attraction Promotion Ordinance'.

The gist of this ordinance is to designate as ‘investment attraction companies’ and provide incentives to companies that meet certain conditions among investment companies within the jurisdiction.

Investment attraction companies according to the ordinance are companies with high-tech strategic industries or foreign investment companies located in the jurisdiction that invest more than 5 billion won in new or expanded headquarters, factories, or research facilities, or hire more than 30 full-time employees.

In addition, the city can designate companies located outside the city that invest more than 10 billion won in new or expanded headquarters, factories, etc., or hire more than 50 new people, or foreign investment companies that invest in businesses eligible for tax reduction, etc., as investment attraction companies.

The city decided to support up to 500 million won for land purchase and construction costs when these investment attraction companies build a building within the jurisdiction, and for building acquisition costs when purchasing an existing building, depending on the size of the investment.

Additionally, half of the building rent will be paid to companies that lease buildings and invest in the region, up to a maximum of 100 million won for two years.

It was decided to provide unlimited special subsidies within the budget to companies with an investment amount exceeding 100 billion won or full-time employment exceeding 300 people, with the consent of the city council.

In addition, the ordinance also includes provisions to pay 700,000 won per person per month for up to 1 year, up to 100 million won, as a job creation subsidy when an investment attraction company hires new Korean residents registered as residents in the jurisdiction.

In addition, if it is deemed necessary to attract investment, the city plans to support the installation and licensing of infrastructure such as roads, water supply and sewage, and provide local tax reduction benefits to the relevant companies.

An official from Siheung City said, "This ordinance revision is the institutional foundation for Siheung City to leap forward as an investment base for high-tech and future industries. With the implementation of the ordinance revision, we will actively attract investment from anchor companies and continue to expand quality jobs."

Meanwhile, companies scheduled to move into the research site (3-4) in the Baegot district of the Gyeonggi Free Economic Zone, where a public offering is in progress, are expected to be the first beneficiaries of this ordinance.

Three companies, including BioFDNC Co., Ltd., Duchem Bio Co., Ltd., and Chong Kun Dang Co., Ltd., submitted letters of intent to participate in the contest that was held until recently. The city plans to receive and evaluate business applications by the 29th and then decide on the preferred bidder on the 5th of next month.