Article 1 (Purpose) The purpose of this Rule is to provide for matters necessary for the enforcement of the Seoul Metropolitan Government Ordinance on Support for Foreign Investment.

Article 2 (Definitions) Terms used in this Rule shall be defined as follows:
1. "Foreign-investment-induced business" means a business managed and operated with induced investment in accordance with the foreign investment inducement plan formulated and established by the Mayor of the Seoul Metropolitan Government (hereinafter referred to as the "Mayor");
2. "Number of full-time employees" means the average number of persons who have provided labor to an enterprise in return for wages, stated as persons with earned income on the report of the current status of the withholding and collection of income tax, which has been submitted to the head of the competent tax office pursuant to Article 185 (1) of the Enforcement Decree of the Income Tax for the preceding three months.
[This Article Wholly Amended by Rule No. 3756, Jul. 1, 2010]

Article 3 (Scope of Medium and Small Enterprises) "Medium and small enterprises" in Article 7 of the Seoul Metropolitan Government Ordinance on Support for Foreign Investment (hereinafter referred to as the "Ordinance") refers to the medium and small enterprises defined in Article 2 of the Framework Act on Small and Medium Enterprises.
[This Article Wholly Amended by Rule No. 3756, Jul. 1, 2010]

Article 4 (Guidelines for Payment of Rewards) (1) The rewards under Article 8 of the Ordinance shall be paid within the maximum of one million won per foreign-investment-induced business, but the amount of rewards payable shall be calculated in accordance with the guidelines in the Table, based on the foreign-invested amount that has been declared or has arrived for investment in the Republic of Korea. <Amended by Rule No. 3756, Jul. 1, 2010>
(2) The amount of rewards payable under paragraph (1) may be adjusted within the range of 50 to 200 percent, taking into consideration the degree to which it contributes to boosting of the economy of Seoul. <Newly Inserted by Rule No. 3756, Jul. 1, 2010>
(3) The reward for a declared amount may be paid within the maximum of 20 percent of the reward for an amount which has arrived under paragraph (1) or (2). <Newly Inserted by Rule No. 3756, Jul. 1, 2010>
(4) If a reward shall be paid for a foreign-invested amount that has arrived after a reward under paragraph (3) was paid, such reward shall be paid after deducting the amount of the reward already paid pursuant to paragraph (3). <Newly Inserted by Rule No. 3756, Jul. 1, 2010>
(5) No reward shall be paid in addition to a reward under the body of Article 14-3 (2) of the Foreign Investment Promotion Act. <Amended by Rule No. 3756, Jul. 1, 2010>
(6) If a person obtains a reward by fraud or other wrongful means, the Mayor shall recover the reward fully or partially, as determined by the Mayor. <Amended by Rule No. 3756, Jul. 1, 2010>

Article 5 (Procedure for Payment of Rewards) (1) In order to pay a reward, the division primarily responsible for foreign-investment-induced businesses shall prepare a report on the payment of the reward in Form 1 attached hereto. In such cases, the degree of contribution to the inducement of the investment at each stage, such as negotiations for the inducement of the foreign investment and the execution of a memorandum of understanding, shall be taken into consideration.
(2) When a report on the payment of a reward is prepared in accordance with paragraph (1), the Mayor shall determine the eligibility for the payment of the reward, the amount of the reward, the contribution ratio, etc. through the deliberation by the committee for deliberation on support for inducement of foreign investment under Article 10 (hereinafter referred to as the "committee").
(3) Rewards shall be paid once or more each year, but a reward not paid during the same year, if any, shall be paid in the following year.
[This Article Wholly Amended by Rule No. 3756, Jul. 1, 2010]

Article 6 (Guidelines for Payment of Employment Subsidies) (1) The employment subsidies under Article 15 of the Ordinance shall be paid in accordance with the following guidelines within the maximum of 200 million won per foreign-invested enterprise. In such cases, new employment resulting from a foreign investment shall be realized within five years from the day on which the investment is made (or within five years from the day on which additional investment is made, where further investment is made additionally). <Amended by Rule No. 3575, Sep. 13, 2007; Rule No. 3756, Jul. 1, 2010>
1. Entities eligible for payment: Foreign-invested enterprises that invest in any strategic industry under the Seoul Metropolitan Government Ordinance on the Development of Strategic Industries and the Support of Enterprises; <Amended by Rule No. 3756, Jul. 1, 2010>
2. Prerequisites for payment: The following prerequisites shall be fully met: <Amended by Rule No. 3575, Sep. 13, 2007>
(a) The increase in the number of full-time employees as a result of the foreign investment at issue shall exceed ten persons; <Amended by Rule No. 3516, Nov. 16, 2006; Rule No. 3575, Sep. 13, 2007; Rule No. 3756, Jul. 1, 2010>
(b) The ratio of the foreign investment in the foreign-invested enterprise shall be at least 30/100. If a national or a corporation of the Republic of Korea directly or indirectly holds voting shares of stock (including equity shares) of the foreign corporation or enterprise in such cases, the portion equivalent to the holding ratio of such shares of stock shall not be regarded as foreign investment pursuant to Article 121-2 (11) of the Restriction of Special Taxation Act and Article 116-2 (12) of the Enforcement Decree of the same Act; <Amended by Rule No. 3575, Sep. 13, 2007; Rule No. 3756, Jul. 1, 2010>
3. Amount payable: The subsidy shall be paid for up to six months for each full-time employee exceeding 10 hired as a result of a foreign investment but shall not exceed one million won per month; <Amended by Rule No. 3516, Nov. 16, 2006; Rule No. 3575, Sep. 13, 2007; Rule No. 3756, Jul. 1, 2010>
4. Payment condition: The prerequisites under subparagraph 2 (a) and (b) shall be maintained for not less than three years.
(2) If a foreign-invested enterprise obtains an employment subsidy by fraud or other wrongful means or breaches the payment condition under paragraph (1) 4, the Mayor shall recover the employment subsidy fully or partially, as determined by the Mayor.

Article 7 (Guidelines for Payment of Education or Training Subsidies) (1) The education or training subsidy under Article 16 of the Ordinance shall be paid within the maximum of 200 million won per foreign-invested enterprise in accordance with the following guidelines. In such cases, the education or training shall be done within five years from the day on which a foreign investment is made (or within five years from the day on which additional investment is made, where further investment is made additionally): <Amended by Rule No. 3575, Sep. 13, 2007; Rule No. 3756, Jul. 1, 2010>
1. Entities eligible for payment: Foreign-invested enterprises that invest in a foreign-investment-induced project or a strategic industry;
2. Prerequisites for payment: The following prerequisites shall be fully met: <Amended by Rule No. 3575, Sep. 13, 2007>
(a) The increase in the number of full-time employees resulting from the foreign investment at issue shall exceed ten persons; <Amended by Rule No. 3516, Nov. 16, 2006; Rule No. 3575, Sep. 13, 2007; Rule No. 3756, Jul. 1, 2010>
(b) The ratio of the foreign investment in the foreign-invested enterprise shall be at least 30/100. If a national or a corporation of the Republic of Korea directly or indirectly holds voting shares of stock (including equity shares) of the foreign corporation or enterprise in such cases, the portion equivalent to the holding ratio of such shares of stock shall not be regarded as foreign investment pursuant to Article 121-2 (11) of the Restriction of Special Taxation Act and Article 116-2 (12) of the Enforcement Decree of the aforesaid Act; <Amended by Rule No. 3575, Sep. 13, 2007; Rule No. 3756, Jul. 1, 2010>
(c) The education or training shall be conducted in a vocational education or training institution under the Vocational Education and Training Promotion Act; <Amended by Rule No. 3756, Jul. 1, 2010>
3. Amount payable: The subsidy shall be paid for up to six months for each additional full-time employee hired as a result of a foreign investment but shall not exceed one million won per month; <Amended by Rule No. 3516, Nov. 16, 2006; Rule No. 3575, Sep. 13, 2007; Rule No. 3756, Jul. 1, 2010>
4. Payment condition: The prerequisites under subparagraph 2 (a) and (b) shall be maintained for not less than three years.
(2) If a foreign-invested enterprise obtains an education or training subsidy by fraud or other wrongful means or breaches the payment condition under paragraph (1) 4, the Mayor shall recover the education or training subsidy fully or partially, as determined by the Mayor. <Amended by Rule No. 3575, Sep. 13, 2007; Rule No. 3756, Jul. 1, 2010>

Article 8 (Procedure for Payment of Employment Subsidies, etc.) (1) A foreign-invested enterprise that intends to receive an employment subsidy or an education or training subsidy shall submit an application for the grant of a subsidy to the Mayor in Form 2 attached hereto.
(2) The Mayor shall, upon receiving an application under paragraph (1), decide whether to pay the subsidy and the amount of payment through the deliberation by the committee for deliberation on support for inducement of foreign investment under Article 10. <Amended by Rule No. 3756, Jul. 1, 2010>
(3) An employment subsidy or an education or training subsidy shall be paid in a lump sum, and a subsidy not paid during the relevant year, if any, shall be paid in the following year. <Amended by Rule No. 3756, Jul. 1, 2010>

Article 9 (Eligibility for Relaxation of Restrictions on Construction Works, etc.) "Foreign-invested enterprises that are recognized to have a great impact on the regional economy" in Article 19 of the Ordinance mean any of the following enterprises: <Amended by Rule No. 3575, Sep. 13, 2007>
1. A foreign-invested enterprise that builds or expands a factory or place of business in order to engage in a business of industrial support service business or a business accompanying high technology under Article 121-2 (1) 1 of the Restriction of Special Taxation Act or a strategic industry, if the foreign investment in such a business amounts to ten million U.S. dollars or more; <Amended by Rule No. 3756, Jul. 1, 2010>
2. A foreign-invested enterprise that builds or expands a factory or place of business in order to conduct research and development activities of a business of industrial support service business or a business accompanying high technology under Article 121-2 (1) 1 of the Restriction of Special Taxation Act, if the foreign investment in such a business amounts to five million U.S. dollars or more; <Amended by Rule No. 3756, Jul. 1, 2010>
3. A foreign-invested enterprise that builds or expands a factory or place of business, if the foreign investment amounts to 100 million U.S. dollars or more.

Article 10 (Committee for Deliberation on Support for Inducement of Foreign Investment) (1) In order to deliberate on matters concerning the grant of rewards, employment subsidies, and education or training subsidies under Articles 4, 6, and 7, the Mayor shall have a committee for deliberation on support for inducement of foreign investment under his/her control. <Amended by Rule No. 3756, Jul. 1, 2010>
(2) The committee under paragraph (1) shall be comprised as follows: <Amended by Rule No. 3575, Sep. 13, 2007; Rule No. 3756, Jul. 1, 2010>
1. Chairperson: The Director General of the Bureau in charge of foreign investment; <Amended by Rule No. 3516, Nov. 16, 2006>
2. Committee members: An officer in charge of foreign investment, an officer in charge of industrial support, an officer in charge of employment policies, and persons commissioned by the Mayor from among those who have good knowledge and experience in foreign investment inducement programs. <Amended by Rule No. 3516, Nov. 16, 2006; Rule No. 3549, May 31, 2007; Rule No. 3598, Jan. 31, 2008; Rule No. 3756, Jul. 1, 2010>
(3) The committee under paragraph (1) shall have one secretary for efficient operation, and the officer in charge of foreign investment shall serve as the secretary. <Amended by Rule No. 3756, Jul. 1, 2010>
(4) Other necessary matters concerning the operation of the committee shall be determined by the committee chairperson through resolution by the committee.

Article 11 (Exclusion and Abstention of Committee Members) (1) If a committee member or the chairperson has a direct interest in a case brought before the committee for deliberation, such a committee member or the chairperson shall not be permitted to participate in the deliberation and resolution on the case.
(2) If a committee member or the chairperson has an excuse under paragraph (1), he/she may abstain from participating in the deliberation and resolution on the case.
(3) If the chairperson is absent from a meeting of the committee due to exclusion, abstention, etc., an acting chairperson shall be elected by and from among committee members.
[This Article Wholly Amended by Rule No. 3575, Sep. 13, 2007]

ADDENDA
(1) (Enforcement Date)
This Rule shall enter into force on the date of its promulgation.
(2) (Applicability concerning Eligibility for Payment of Rewards)
Article 4 shall apply to foreign investments successfully induced on or after June 21, 2004.
(3) (Applicability concerning Grant of Employment Subsidies, etc.)
Articles 6 and 7 shall apply to new employment realized or the education or training conducted on or after June 21, 2004.
ADDENDUM <Rule No. 3516, Nov. 16, 2006>
This Rule shall enter into force on the date of its promulgation.
ADDENDA <Rule No. 3549, May 31, 2007>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Rule No. 3575, Sep. 13, 2007>
(1) (Enforcement Date)
This Rule shall enter into force on the date of its promulgation.
(2) (Applicability of Guidelines for Grant of Subsidies)
The amended provisions of Article 6 (1) 2 (a) and (1) 3 and Article 7 (1) 2 (a) shall apply to subsidies applied for after this Rule enters into force.
ADDENDA <Rule No. 3598, Jan. 31, 2008>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Rule No. 3756, Jul. 1, 2010>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation.
Article 2 (Applicability)
This Rule shall apply to the results of foreign investments that are declared or arrive on or after January 1, 2010.