SEOUL METROPOLITAN GOVERNMENT ORDINANCE ON SUPPORT FOR FOREIGN INVESTMENT Comparison

SEOUL METROPOLITAN GOVERNMENT ORDINANCE ON SUPPORT FOR FOREIGN INVESTMENT

SEOUL METROPOLITAN GOVERNMENT ORDINANCE ON SUPPORT FOR FOREIGN INVESTMENT
Partial Amendment No. 8840, Jul. 24, 2023	Amendment of Other Laws No. 9487, Jan. 03, 2025
Article 1 (Purpose) The purpose of this Ordinance is to facilitate the inducement of foreign investment, and thus contribute to the economic vitalization of Seoul Metropolitan City, by providing for matters delegated by the Foreign Investment Promotion Act and the Enforcement Decree thereof, as well as matters concerning foreign investment and support for inducement activities related thereto. <Amended by Ordinance No. 4586, Dec. 26, 2007>	Article 1 (Purpose) The purpose of this Ordinance is to facilitate the inducement of foreign investment and thereby contribute to the economic vitalization of Seoul Metropolitan City, by providing for the matters delegated by the Foreign Investment Promotion Act and the Enforcement Decree thereof, as well as matters concerning foreign investment and support for inducement activities related thereto. <Amended on Dec. 26, 2007, Jul. 24, 2023>
Article 2 (Definitions) The terms used in this Ordinance shall be defined as follows: <Amended by Ordinance No. 6093, Jan. 7, 2016; Ordinance No. 6386, Jan. 5, 2017> 1. The term "foreign investment" has the same meaning as defined in Article 2 (1) 4 of the Foreign Investment Promotion Act (hereinafter referred to as the "Act"); 2. The term "foreign-invested enterprise" means any enterprise invested by foreign investors as defined in Article 2 (1) 5 and 6 of the Act and engaging in business in the jurisdiction of the Seoul Metropolitan Government (hereinafter referred to as "Seoul Government"); 3. The term "foreign investment area" means an area designated by the Mayor of the Seoul Metropolitan Government (hereinafter referred to as the "Mayor") pursuant to Article 18 (1) of the Act; 4. The term "facility for improving a foreign investment environment" means a facility that falls under Article 2 (8) of the Enforcement Decree of the Foreign Investment Promotion Act (hereinafter referred to as the "Decree"). [This Article Wholly Amended by Ordinance No. 4591, Dec. 26, 2007]	Article 2 (Definition) The definitions of the terms used in this Ordinance shall be as follows: <Amended on Jan. 7, 2016, Jan. 5, 2017, Jul. 24, 2023> 1. The term "foreign investment" has the same meaning as defined in Article 2 (1) 4 of the Foreign Investment Promotion Act (hereinafter referred to as the "Act"); 2. The term "foreign-invested enterprise" refers to any enterprise in which foreign investors invest, as defined in Articles 2 (1) 5 and 6 of the Act, and which engages in business within the jurisdiction of the Seoul Metropolitan Government (hereinafter referred to as "Seoul Government"); 3. The term "foreign investment area" refers to an area designated by the Mayor of the Seoul Metropolitan Government (hereinafter referred to as the "Mayor") pursuant to Article 18 (1) of the Act; 4. The term "facility for improving the foreign investment environment" refers to a facility that falls under Article 2 (9) of the Enforcement Decree of the Foreign Investment Promotion Act (hereinafter referred to as the "Decree"). [This Article Wholly Amended on Jul. 26, 2007]
Article 3 (Advisory Council for Foreign Investment) (1) The Mayor shall establish an advisory council for foreign investment (hereinafter referred to as the "Advisory Council") to seek advice on the establishment of foreign investment policies and the improvement of investment systems. (2) The Advisory Council shall be comprised of no more than 30 members, including a Chairperson and a Vice Chairperson. (3) Members of the Advisory Council shall be commissioned by the Mayor from among those persons who have abundant experience and knowledge relating to foreign investment, and their term of office shall be three years. (4) The Chairperson and the Vice Chairperson shall be appointed by the Mayor from among members, and their term of office shall be two years. (5) Meetings of the Advisory Council shall, in principle, be held quarterly, but may be held at any time if deemed necessary by the Mayor. (6) Allowances and actual travel expenses incurred may be reimbursed to the members of the Advisory Council who attend a meeting thereof, within budgetary limits, and if they participate in any event related to the inducement of investment or in public relations at the request of the Mayor, the expenses incurred in relation thereto may be reimbursed to them. (7) Except as provided in this Ordinance, matters necessary for the operation of the Advisory Council shall be separately determined by the Mayor.	Article 3 Deleted. &#lt;Jul. 24, 2023&#gt;
Article 4 Deleted. <by Ordinance No. 4586, Dec. 26, 2007>	Article 4 Deleted. &#lt;Dec. 26, 2007&#gt;
Article 5 (Support for Foreign Investment in Infrastructure) When the Mayor induces foreign investments for the construction of infrastructure in Seoul Government pursuant to the Act on Public-Private Partnerships in Infrastructure, he or she may render administrative and financial assistance to guarantee foreign investors' return on investments. <Amended by Ordinance No. 4591, Dec. 26, 2007; Ordinance No. 6386, Jan. 5, 2017>	Article 5 (Support for Foreign Investment in Infrastructure) When inducing foreign investment for the construction of infrastructure in Seoul Metropolitan City pursuant to the Act on Public-Private Partnerships in Infrastructure, the Mayor may render administrative and financial assistance to guarantee foreign investors' return on their investments. [Title amended on Dec. 26, 2007] <Amended on Dec. 26, 2007, Jan. 5, 2017>
Article 6 (Entrustment of Foreign Investment Inducement Affairs) (1) When the Mayor induces foreign investments in an area that requires expertise, such as large investment projects and infrastructure, he or she may entrust part of administrative affairs necessary for carrying out such inducement to an appropriate expert, organization, corporation, etc. (hereinafter referred to as "specialized investment inducement institution"). <Amended by Ordinance No. 4591, Dec. 26, 2007> (2) The Mayor may establish an organization for promoting foreign investment within a specialized investment inducement institution, so that such organization can be entrusted with part of the administrative affairs necessary for attracting foreign investment such as providing support in terms of global marketing and investment report filed by foreign investors, in an effort to strengthen the foundation for attracting investment. <Amended by Ordinance No. 7622, Jul. 16, 2020> (3) Where the Mayor entrusts a specialized investment inducement institution with part of the administrative affairs related to investment inducement under paragraphs (1) and (2), the Mayor may grant such institution a subsidy to cover all or some of the expenses incurred in performing the entrusted affairs. <Newly Inserted by Ordinance No. 7622, Jul. 16, 2020>	Article 6 (Entrustment of Matters Pertaining to Foreign Investment Inducement) (1) When inducing foreign investment in an area that requires expertise, such as large investment projects and infrastructure, the Mayor may entrust a part of the administrative affairs necessary for carrying out such inducement to an appropriate expert, organization, corporation, etc. (hereinafter referred to as "specialized investment inducement institution"). <Amended on Dec. 26, 2007, Jul. 24, 2023, Jan. 3, 2025> (2) The Mayor may establish an organization to promote foreign investment within an institution that specializes in inducing investment, in order that such organization may be entrusted with part of the administrative affairs necessary for attracting foreign investment, such as the provision of support for global marketing and the filing of investment reports by foreign investors, in an effort to strengthen the foundations for attracting foreign investment. <Amended on No. 7622, Jul. 16, 2020> (3) Where the Mayor entrusts an institution that specializes in inducing investment with a part of the administrative affairs related to the inducement of investment under paragraphs (1) and (2), the Mayor may grant such institution a subsidy to cover all or some of the expenses incurred in performing the entrusted affairs. <Newly Inserted on, Jul. 16, 2020, Jul. 24, 2023>
Article 6-2 (Investment Inducement Taskforce) (1) The Mayor may operate an investment inducement taskforce for identifying potential foreign investors, in a bid to facilitate attraction of investment. (2) Matters necessary for the operation of an investment inducement taskforce shall be separately determined by the Mayor. [This Article Newly Inserted by Ordinance No. 7622, Jul. 16, 2020]	Article 6-2 (Investment Inducement Taskforce) (1) To facilitate the attraction of investment the Mayor may operate an investment inducement taskforce to identify potential foreign investors. (2) Matters necessary for the operation of an investment inducement taskforce shall be separately determined by the Mayor. [This Article Newly Inserted by Ordinance No. 7622, Jul. 16, 2020]
Article 7 (Support for Foreign Investment Inducement Activities of Small and Medium Enterprises) If any small and medium enterprise that is located in Seoul conducts foreign investment inducement activities, the Mayor may pay some expenses incurred in relation thereto to such small and medium enterprise within budgetary limits.	Article 7 (Support for Foreign Investment Inducement Activities of Small and Medium Enterprises) The Mayor may support small and medium enterprises that are located in the City and engage in foreign investment inducement activities by subsidizing a part of the expenses necessary for such activities within the budgetary limits.<Amended on Jul. 24, 2023>
Article 8 (Monetary Rewards) Pursuant to Article 14-3 of the Act, the Mayor may pay a monetary reward to any person, organization, corporation, or public official of the Seoul Government or an autonomous Gu thereof that is deemed to have greatly contributed to the inducement of foreign investments based on the actual outcomes of such inducement within budgetary limits. <Amended by Ordinance No. 6386, Jan. 5, 2017>	Article 8 (Monetary Rewards ) Pursuant to Article 14-3 of the Act, the Mayor may pay a monetary reward to any person, organization, corporation, or public official of the Seoul Metropolitan Government or an autonomous Gu thereof that is deemed to have greatly contributed to the inducement of foreign investment based on the actual outcomes of such inducement within the budgetary limits. <Amended on Jan. 5, 2017>
Article 9 (Support for Development of Foreign Investment Areas) (1) In order to develop foreign investment areas designated under Article 18 (1) of the Act, the Mayor may pay some expenses incurred in such development to the developer of a project to construct infrastructure, such as roads, electric power, water supply facilities, sewerage and communications, within limitary limits. <Amended by Ordinance No. 6386, Jan. 5, 2017> (2) Deleted. <by Ordinance No. 4591, Dec. 26, 2007>	Article 9 (Support for Development of Foreign Investment Areas) In order to develop foreign investment areas as designated under Article 18 (1) of the Act, the Mayor may pay part of the expenses incurred in such development to the developer of a project to construct infrastructure, such as roads, electric power facilities, water supply facilities, and sewerage and communications facilities, within the budgetary limits. <Amended by Ordinance No. 6386, Jan. 5, 2017> Deleted <Dec. 26, 2007>
Article 9-2 (Support for Tenant Companies in Foreign Investment Zones) The Mayor may grant a subsidy to tenant companies in foreign investment zones designated under Article 18 (1) 3 and 4 of the Act to cover their rents, in a bid to revitalize foreign investment zones. [This Article Newly Inserted by Ordinance No. 7622, Jul. 16, 2020]	Article 9-2 (Support for Tenant Companies in Foreign Investment Zones) The Mayor may grant a subsidy to tenant companies in foreign investment zones as designated under Article 18 (1) 3 and 4 of the Act to cover their rents, in an effort to revitalize foreign investment zones. [This Article Newly Inserted by Ordinance No. 7622, Jul. 16, 2020]
Article 10 (Support for Creation of Conditions for Foreign Investment Circumstances) In order to create foreigner-friendly investment conditions, the Mayor may grant a subsidy, within budgetary limits, to a person who carries out any of the following projects to cover some project costs or operating expenses : <Amended by Ordinance No. 4591, Dec. 26, 2007; Ordinance No. 5211, Jan. 5, 2012> 1. A foreigner-only village (referring to a certain area in which foreigners reside collectively); 2. Constructing infrastructure necessary for improving a living environment of foreigners, such as roads, electric power, water supply facilities, sewerage and communications; 3. Establishing and operating facilities for improving a foreign investment environment.	Article 10 (Support for Creation of Conditions Conducive to Foreign Investment) To form an investment environment that is favorable to foreign investment, the Mayor may subsidize all or a part of the project funds or operational funds of an entity that executes any of the following projects, within the budgetary limits: <Amended on Dec. 26, 2007, Jan. 5, 2012, Jul. 24, 2023> 1. A foreigner-only village (referring to a certain area in which foreigners reside collectively); 2. Construction of infrastructure necessary to improve the living environment of foreign residents, such as roads, electric power facilities, water supply facilities, sewerage and communications facilities, etc.; 3. Establishment and operation of facilities for improving the foreign investment environment.
Article 11 (Special Cases concerning Handling of Civil Petitions) The Mayor shall give priority to dealing with civil petitions subject to en bloc handling, such as authorization or permits under Article 17 (3) of the Act. <Amended by Ordinance No. 6386, Jan. 5, 2017>	Article 11 (Special Cases concerning the Handling of Civil Petitions) The Mayor shall give priority to dealing with civil petitions subject to en bloc handling, such as authorization or permits under Article 17 (3) of the Act. <Amended on No. 6386, Jan. 5, 2017>
Article 12 (Reduction of, or Exemption from Proceeds from Sale of and Rent on Public Property) (1) If any property of the Seoul Metropolitan Government is sold to a foreign-invested enterprise, the Mayor may sell it at the price of its development cost or exempt the enterprise from all or some of the value of such property, as prescribed by the Seoul Metropolitan Government Ordinance on the Management of Public Property and Commodity. <Amended by Ordinance No. 4591, Dec. 26, 2007> (2) When the Mayor leases any property of the Seoul Metropolitan Government to a foreign-invested enterprise or a person who carries out a project under Article 9 or 10 (hereinafter referred to as "foreign-invested enterprise, etc."), he or she may fully or partially exempt the foreign-invested enterprise, etc. from the rent therefor, as prescribed by the Seoul Metropolitan Government Ordinance on the Management of Public Property and Commodity. <Amended by Ordinance No. 4591, Dec. 26, 2007; Ordinance No. 6386, Jan. 5, 2017>	Article 12 (Reduction of, or Exemption from, Proceeds from Sale of or Rent on Public Properties) (1) When selling the City’s assets to a foreign-invested enterprise, the Mayor may sell them at the development cost, or discount all or a part of the value of such assets under the Seoul Metropolitan Ordinance on the Management of Public Property and Supplies. <Amended on Dec. 26, 2007, Jul. 24, 2023> (2) When leasing City assets to a foreign-invested enterprise or an entity that execute projects under Article 9 or 10 (hereinafter referred to as a “foreign-invested enterprise, etc.”), the Mayor may discount all or a part of the lease under the Seoul Metropolitan Ordinance on the Management of Public Property and Supplies. <Amended on Dec. 26, 2007, Jan. 5, 2017, Jul. 24, 2023>
Article 13 (Financial Support out of Small and Medium Business Support Fund) Pursuant to Article 3 (2) of the Act, the Mayor may provide financial support out of the Small and Medium Business Support Fund to foreign-invested enterprises, as prescribed by the Seoul Metropolitan Government Ordinance on the Establishment and Operation of Small and Medium Business Support Fund. <Amended by Ordinance No. 4591, Dec. 26, 2007; Ordinance No. 5729, Jul. 17, 2014; Ordinance No. 6386, Jan. 5, 2017>	Article 13 (Financial Support from the Small and Medium Business Support Fund) The Mayor may subsidize a foreign-invested enterprise with funds provided under Article 3 (2) of the Act and the Seoul Metropolitan Government Ordinance on the Establishment and Management of the Fund for Fostering Small and Medium Enterprises. <Amended on Dec. 26, 2007, Jul. 17, 2014, Jan. 5, 2017, Jul. 24, 2023>
Article 14 (Cash Grant) The Mayor may provide a cash grant to a foreign-invested enterprise in a certain amount of money invested by the foreign-invested enterprise within budgetary limits, taking into account whether the foreign-invested enterprise provides high technology, the effect of technology transfer, the scale of employment creation, and appropriateness of the place in which that enterprise is located. <Amended by Ordinance No. 7423, Dec. 31, 2019>	Article 14 (Cash Grant) The Mayor may, within the budgetary limits, subsidize certain amounts in cash out of the investments made by a foreign-invested enterprise, after taking into consideration whether the enterprise is involved with advanced technology, the potential effects of technology transfer, the scale of job creation, and the appropriateness of the location, etc. <Amended on Dec. 31, 2019, Jul. 24, 2023>
Article 15 (Employment Subsidies) If a foreign-invested enterprise newly employs nationals of the Republic of Korea, the Mayor may grant employment subsidies to the foreign-invested enterprise within budgetary limits, taking into account the scale of such employment, the effect on the development of the regional economy, etc. under Article 14 (4) of the Act and Article 20 (4) of the Decree. <Amended by Ordinance No. 6386, Jan. 5, 2017>	Article 15 (Employment Subsidies) When a foreign-invested enterprise newly employs Korean nationals, the Mayor may pay employment subsidies within the budgetary limits under Article 14 (4) of the Act and Article 20 (4) of the Decree, taking into consideration the scale of employment and the potential effects on local economic development, etc.<Amended on Jan. 5, 2017, Jul. 24, 2023>
Article 16 (Education or Training Subsidies) If a foreign-invested enterprise provides education or training to nationals of the Republic of Korea to newly employ them, the Mayor may grant education or training subsidies to the foreign-invested enterprise within budgetary limits, taking into account the scale of such employment, the effect on the development of the regional economy, etc.	Article 16 (Education or Training Subsidies) Where a foreign-invested enterprise conducts education or training for the new employment of Korean nationals, the Mayor may pay education or training subsidies within the budgetary limits, taking into consideration the scale of employment and the potential effects on local economic development, etc. <Amended on Jul. 24, 2023>
Article 17 (Ceiling of Subsidies) The total amount of subsidies to be granted by the Mayor to a foreign-invested enterprise, etc. in accordance with this Ordinance shall not exceed 50/100 of the amount of investment by the foreign-invested enterprise, etc. <Amended by Ordinance No. 7423, Dec. 31, 2019>	Article 17 (Ceiling on Subsidies) The total funds subsidized by the Mayor to a foreign-invested enterprise, etc. under this Ordinance shall not exceed 50/100 of the amount invested by the foreign-invested enterprise, etc. <Amended on Jul. 31, 2019, Jul. 24, 2023>
Article 18 (Post-Management) (1) A foreign-invested enterprise, etc. provided with funds in accordance with this Ordinance shall use such funds only for the business that is specified in the relevant business plan submitted at the time an application for such funds are filed. (2) If it is necessary to verify the management and use of funds provided under this Ordinance, the Mayor may require a foreign-invested enterprise, etc. to submit related materials or have public officials under his or her jurisdiction visit the foreign-invested enterprise, etc. to conduct an investigation. <Amended by Ordinance No. 7423, Dec. 31, 2019>	Article 18 (Post-Management) (1) A foreign-invested enterprise, etc. which receives subsidized funds under this Ordinance shall use such funds solely to finance projects specified in the project plan submitted at the time of application for a subsidy. <Amended on Jul. 24, 2023> (2) If verification is necessary in connection with the execution and management of funds subsidized under this Ordinance, the Mayor may request the foreign-invested enterprise, etc. concerned to submit the related materials, or dispatch an affiliated public official to visit the foreign-invested enterprise, etc. in order to investigate their execution and management of subsidies received. <Amended on Dec. 31, 2019, Jul. 24, 2023>
Article 19 (Other Support) With respect to foreign-invested enterprises recognized to have a great impact on the regional economy, the Mayor may relax restrictions on activities or construction of buildings, or relax a building-to-land ratio or floor area ratio in a specific-use area or specific-use district, taking into account the scale of investment, employment effects, etc. In such cases, provisions applicable to such relaxation shall be prescribed by the Seoul Metropolitan Government Ordinance on Urban Planning. <Amended by Ordinance No. 4591, Dec. 26, 2007>	Article 19 (Other Types of Support) For foreign-invested enterprises deemed by the Mayor to have a large impact on the local economy, the Mayor may relax the restrictions on activities or constructions or relax the building-to-land ratio or floor area ratio within the special-purpose areas and zones, taking into consideration the scale of investment, employment effect, etc. The provisions applied to such relaxed measures shall be determined by the Seoul Metropolitan Government Urban Planning Ordinance. <Amended on Dec. 26, 2007, Jul. 24, 2023> [Title amended on Dec. 26, 2007]
Article 20 (Enforcement Rule) Matters necessary for the enforcement of this Ordinance shall be prescribed by rules of the Seoul Government.	Article 20 (Enforcement Rule) Matters necessary for the enforcement of this Ordinance shall be prescribed by the rules of the Seoul Metropolitan Government.
	ADDENDA (En Bloc Amendment Ordinance for the Overhaul, Etc. of Inaccessible Terminology in Seoul Metropolitan Government Ordinances) <No. 9487, Jan. 3, 2025> This Ordinance shall enter into force on the date of its promulgation.