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. <Amended by Rule No. 3867, Aug. 9, 2012>

Article 2 (Definitions) The terms used in this Rule shall be defined as follows: <Amended by Rule No. 3575, Sep. 13, 2007; Rule No. 3756, Jul. 1, 2010; Rule No. 3867, Aug. 9, 2012>
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;
3. “New growth engine industries” mean the following eight industries nurtured by the Seoul Metropolitan Government as new engines for economic growth: <Newly Inserted by Rule No. 3867, Aug. 9, 2012>
(a) IT convergence;
(b) Digital contents industry;
(c) Green industry;
(d) Business service industry;
(e) Fashion and design;
(f) Financial services;
(g) Tourism and convention services;
(h) Bio-medical services.
[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 results of inducement of foreign investment under Article 8 of the Ordinance shall be categorized by type of business, and the amount of a reward payable shall be calculated in accordance with Table 1 attached hereto. <Amended by Rule No. 3756, Jul. 1, 2010; Rule No. 3867, Aug. 9, 2012>
(2) The amount of a reward payable under paragraph (1) may be adjusted within the range of 50 to 200 percent, taking into consideration the level of contribution to boosting the economy, which shall not exceed 100 million won. <Newly Inserted by Rule No. 3756, Jul. 1, 2010; Rule No. 3867, Aug. 9, 2012>
(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 Subsidies) The employment subsidy and the subsidy for education and training under Articles 15 and 16 of the Ordinance shall be paid in accordance with the following guidelines, which shall not exceed 200 million won per foreign-invested enterprise. In such cases, new employment or education and training resulting from foreign investment shall be realized within five years from the day on which the relevant investment is made (if an additional investment is made, within five years from the day on which such additional investment is made):
1. Entities eligible for payment: A foreign-invested enterprise that invests in a foreign-investment-induced business or in any of the new growth engine industries;
2. Prerequisites for payment: The following prerequisites shall be fully met:
(a) The increase in the number of full-time employees as a result of foreign investment made during the year immediately preceding the year in which the application for subsidization is filed shall exceed ten persons;
(b) The ratio of foreign investment in the relevant foreign-invested enterprise shall be at least 30/100. In such cases, if a national or a corporation of the Republic of Korea directly or indirectly holds voting stocks (including equity shares) of the foreign corporation or enterprise, the portion equivalent to the holding ratio of such stocks 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;
(c) In cases of a subsidy for education and training, the education and training shall be provided by an institution specializing in vocational education and training under the Vocational Education and Training Promotion Act;
3. Amount payable: A subsidy of not more than one million won per month shall be paid for up to six months for each full-time employee who is hired after the number of persons hired as a result of a foreign investment exceeds ten persons.
[This Article Wholly Amended by Rule No. 3867, Aug. 9, 2012]

Article 7 (Procedure for Payment of Subsidies) (1) A foreign-invested enterprise that intends to receive an employment subsidy or a subsidy for education and training shall file an application for subsidization in Form 2 attached hereto with the Mayor in accordance with Table 2 attached hereto.
(2) Upon receipt of an application under paragraph (1), the Mayor shall make a decision on whether to pay the subsidy, the amount of payment, etc. according to the results of deliberation by the Committee for Deliberation on Support for Inducement of Foreign Investment under Article 10.
(3) A subsidy determined to be paid pursuant to paragraph (2) shall be paid in a lump sum, but shall be paid during the following year, if it is impracticable to pay it during the pertinent year.
[This Article Wholly Amended by Rule No. 3867, Aug. 9, 2012]

Article 8 (Follow-up Management of Payment, etc. of Subsidies) (1) A foreign-invested enterprise shall maintain the number of full-time employees and the foreign investment ratio at least 30/100 greater than those in the year immediately preceding the year in which an application for subsidization is filed, for three years after the year in which it receives the subsidy.
(2) If a foreign-invested enterprise is found to have received a subsidy by fraud or other illegal means or breaches the condition of payment under paragraph (1), the Mayor shall recover the subsidy in proportion to the period of breach.
(3) If a foreign-invested enterprise that received a subsidy relocates its place of business to any other City/Do, the Mayor may recover the subsidy.
[This Article Wholly Amended by Rule No. 3867, Aug. 9, 2012]

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 of the following members: <Amended by Rule No. 3516, Nov. 16, 2006; Rule No. 3575, Sep. 13, 2007; Rule No. 3598, Jan. 31, 2008; Rule No. 3756, Jul. 1, 2010; Rule No. 3831, Dec. 29, 2011>
1. Chairperson: The Policy Officer in charge of foreign investment;
2. Committee members: The Director of the Investment Inducement Division, the Director of the Economic Policy Division, the Director of Job Policy Division, and persons commissioned by the Mayor from among those who have abundant knowledge and experience in foreign investment inducement programs.
(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.
ADDENDA <Rule No. 3831, Dec. 29, 2012>
Article 1 (Enforcement Date)
This Rule shall enter into force on January 1, 2012. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Rule No. 3867, Aug. 9, 2012>
This Rule shall enter into force on the date of its promulgation.