To stimulate corporate investment in local areas, the ceiling for local investment subsidies will be raised from the current 100 billion won to 150 billion won. Additionally, the subsidy support rate for small and medium-sized enterprises (SMEs) investing in local areas will be increased from the existing 5 percentage points (p) to 8%p and 10%p, respectively.
The Ministry of Trade, Industry and Energy announced on the 30th that the "National Financial Support Standards for Local Governments' Inducement of Local Investment Enterprises" amendment, which includes these provisions, will take effect on July 1st.
This revision aims to revitalize the local economy and create jobs by encouraging businesses in the Seoul metropolitan area to relocate to local regions.
Key improvements to the local investment subsidy support standards for 2025 include:
Increased subsidy limit: The maximum local investment subsidy per case will be expanded from 100 billion won to 150 billion won.
Higher support rate for SMEs: The subsidy support rate for SMEs investing in opportunity development zones will be increased from the existing 5%p to 8%p for medium-sized enterprises and 10%p for small enterprises.
Additional support for key industries: Leading businesses investing in production facilities for economic security items and services will receive an additional 2%p support rate for facility subsidies. Companies investing in long-term unsold industrial complexes will also receive an additional 2%p support rate for facility subsidies.
Easing of restrictions: The waiting period for companies that failed to achieve their investment goals due to unavoidable reasons to reapply for subsidies will be reduced from 3 years to 1 year.
Exemption of maintenance obligations: In cases where an alternative business site is established within the same metropolitan city or province, the existing business site maintenance obligation will be exempted.
Meanwhile, the Ministry of Trade, Industry and Energy announced that it provided a total of 339.6 billion won in local investment promotion subsidies last year, including 224.4 billion won in national funds and 115.2 billion won in local funds, to 54 local investment companies, resulting in a total of 2,478.3 billion won in private investment and the creation of approximately 3,000 local jobs.
In particular, the ministry explained that it contributed to strengthening the competitiveness of key industries by supporting 24 companies in national advanced strategic industries such as semiconductors, secondary batteries, bio, and displays with 117.1 billion won in national funds, and 13 companies in the automobile sector, including electric vehicles, with 45.3 billion won in national funds.
An official from the Ministry of Trade, Industry and Energy said, "We will continue to work with the Korea Industrial Complex Corporation to ensure that the local investment promotion subsidy system is operated with a focus on the needs of users such as local governments and businesses."
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