'Advanced Investment Zone System' to be implemented in September... Subsidies and tax support for resident companies and research institutes

Promulgation of the Amendment to the "Act on the Activation of Industrial Complexes and Factory Establishment" on the 15th

[Sejong=Asia Economy Reporter Joo Sang-don] Starting this September, subsidies, tax support, reductions in charges and rents will be provided to resident companies and research institutions within Advanced Investment Zones.

The Ministry of Trade, Industry and Energy announced on the 14th that the partial amendment to the "Act on the Activation of Industrial Clusters and Establishment of Factories" was promulgated on the 15th and will take effect from September 16.

This amendment was promoted to proactively and offensively respond to supply chain shocks caused by global supply chain restructuring and COVID-19, aiming to promote advanced investment. The Advanced Investment Zone system was newly established, providing a legal basis to support domestic and foreign advanced investment companies and research institutions located in these zones.

First, the amendment defines advanced investment as investment for conducting businesses involving advanced technologies and products under the Industrial Development Act and new growth and original technologies under the Restriction of Special Taxation Act. Advanced investment can be recognized without industry restrictions in fields with high technological levels. Advanced Investment Zones can be designated in parts of existing planned locations such as industrial complexes and free economic zones, or in large-scale regions wishing to attract advanced investment.

For resident companies and research institutions within Advanced Investment Zones, provisions were newly established to support subsidies and tax benefits for advanced investment, reductions in charges and rents, land use exceptions, applications for regulatory improvements, and other various supports and regulatory exemptions.

An official from the Ministry of Trade, Industry and Energy said, "This institutionalizes integrated support related to advanced investment such as financial support, site support, and regulatory improvements to reduce the investment burden on companies and promote advanced investment." He added, "We plan to revise and enact subordinate laws such as enforcement decrees, establish the 'Advanced Investment Zone Development Plan (tentative name)' including detailed support and operation plans within this year, and make every effort to ensure the system is firmly established on the ground."

In addition to establishing the Advanced Investment Zone system, the Ministry plans to strengthen support for promoting foreign investment in advanced fields by announcing the 'Advanced Foreign Investment Attraction Strategy' within this month, aiming to leap forward as the 'world factory of advanced industries.'

This content was produced with the assistance of AI translation services.