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BUSAN METROPOLITAN CITY ORDINANCE ON PROMOTING ATTRACTION OF ENTERPRISES AND INVESTMENT

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BUSAN METROPOLITAN CITY ORDINANCE ON PROMOTING ATTRACTION OF ENTERPRISES AND INVESTMENT

Wholly Amended by Ordinance No. 6799, Dec. 28, 2022

CHAPTER I GENERAL PROVISIONS

• Article 1 (Purpose)
• The purpose of this Ordinance is to prescribe matters regarding the efficient attraction of domestic enterprises, foreign investment, etc., and support thereto for the enhancement of the industrial structure and the revitalization of the local economy of Busan Metropolitan City.

• Article 2 (Definitions)
• The terms used in this Ordinance are defined as follows:
  • 1. The term "attraction" means an activity undertaken by Busan Metropolitan City (hereinafter referred to as the "City") to enter into a memorandum of understanding on investment or an equivalent agreement with domestic or foreign enterprises, etc. to promote investment or employment by enterprises inside the City area (hereinafter referred to as the “City area”);
  • 2. The term "relocation to the jurisdiction" means the relocation of an independent place of business, such as the headquarters, factory, or research institute, from outside the City area to inside the City area;
  • 3. The term "repatriation" means as defined in subparagraph 3 of Article 2 of the Act on Assistance to Korean Off-Shore Enterprises in Repatriation;
  • 4. The term "foreigner" means an individual, corporation, or organization defined in Article 2 (1) 1 of the Foreign Investment Promotion Act;
  • 5. The term "foreign investment" means as defined in Article 2 (1) 4 of the Foreign Investment Promotion Act;
  • 6. The term "foreign-invested enterprise" means as defined in Article 2 (1) 6 of the Foreign Investment Promotion Act;
  • 7. The term "headquarters" means a place of business located at the registered address of the main office or principal office as indicated in the establishment registration of the enterprise;
  • 8. The term "factory" means a factory defined in subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act;
  • 9. The term "research institute" means a business-affiliated research institute under Article 14-2 of the Basic Research Promotion and Technology Development Support Act;
  • 10. The term "new construction" means the establishment of a new place of business through the construction thereof or the change of the purpose of the existing building, or similar methods;
  • 11. The term "expansion" means the installment of additional business facilities by increasing the gross floor area of the existing place of business;
  • 12. The term "place of business" means an independent place to run business, which is equipped with human resources and physical facilities, necessary for running such business;
  • 13. The term "investment completion date" means the date specified by an investment enterprise in an investment subsidy application that the investment plan, including the investment amount and employment targets, shall be achieved;
  • 14. The term "new and renewable energy facility" means a facility defined in subparagraph 3 of Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy and its auxiliary facilities.

• Article 3 (Classification of Types of Business)
• Types of business used in this Ordinance shall be classified as follows:
  • 1. The term "strategic industry" means an industry prescribed in the Busan Metropolitan City Ordinance on the Development of Strategic Industries;
  • 2. The term "knowledge service industry" means an industry specified in Appendix 2 of the Enforcement Decree of the Industrial Development Act;
  • 3. The term "contact center" means a call center and telemarketing service business according to the Korean Standard Industrial Classification publicly notified by the Commissioner of the Statistics Korea pursuant to Article 22 of the Statistics Act;
  • 4. The term "new growth engine industry" means an industry referred to in Article 121-2 (1) 1 of the Act on Restriction on Special Cases concerning Taxation;
  • 5. The term "business requiring advanced technologies or advanced products" means business using advanced technologies and advanced products under Article 5 of the Industrial Development Act;
  • 6. The term "green industry" means an industry defined in subparagraph 17 of Article 2 of the Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis;
  • 7. The term "materials, components, and equipment industry" means an industry defined in subparagraphs 1 and 2 of Article 2 of the Act on Special Measures for Strengthening the Competitiveness of Materials, Components, and Equipment Industries;
  • 8. The term "regional specialized industry" means an industry defined in subparagraph 4 of Article 2 of the Special Act on Balanced National Development;
  • 9. The term "supra-regional zone industry" means an industry defined in subparagraph 5 of Article 2 of the Special Act on Balanced National Development;
  • 10. The term "high-tech type of business" means a type of business specified in Appendix 5 of the Enforcement Rule of the Industrial Cluster Development and Factory Establishment Act.

• Article 4 (Consultative Council on Attraction of Investment)
• • (1) The Mayor of Busan Metropolitan City (hereinafter referred to as the "Mayor") shall establish the Busan Metropolitan City Consultative Council on the Attraction of Investment (hereinafter referred to as the "Consultative Council") to deliberate and render advice on the following matters related to the attraction of enterprises and investments:
    • 1. Matters regarding policies for attracting enterprises and investments;
    • 2. Matters regarding the selection, evaluation, subsidy support, etc. of enterprises and investments to be supported, the provision of subsidies thereto, etc.;
    • 3. Matters regarding the management of grievances, civil petitions, etc. filed by enterprises and investors;
    • 4. Matters regarding support and promotion for the attraction of enterprises and investments;
    • 5. Matters regarding the payment of investment attraction awards;
    • 6. Any other matter necessary for the attraction of enterprises and investments.
  • (2) For matters to be deliberated and advised by the Consultative Council under paragraph (1) and where subsidies are financed by the Fund, the Busan Metropolitan City Deliberation Committee on the Operation of the Investment Promotion Fund established under Article 32 shall act for the Consultative Council.

• Article 5 (Use of Private Sector Experts)
• • (1) The Mayor may commission an attorney-at-law, certified public accountant, domestic or foreign investment expert, entrepreneur, or any private sector expert (including a foreigner), as Busan Metropolitan City Director-General for Investment Attraction (hereinafter referred to as "Director-General") to promote the attraction of domestic and foreign investments.
  • (2) The term of office of the Director-General shall be two years and may be renewed consecutively only twice.
  • (3) The Mayor may pay expenses for activities and travel, and other necessary expenses within the budget, to support the activities of the Director-General.

CHAPTER II SUPPORT FOR INVESTMENT BY DOMESTIC ENTERPRISES AND ATTRACTION THEREOF

• Article 6 (Reduction or Exemption of Local Taxes)
• • (1) Articles 79 and 80 of the Act on Restriction on Special Cases concerning Local Taxation shall apply to the reduction or exemption of local taxes on real estate acquired by an enterprise which intends to relocate its head office, principal office, or factory which has been located in an over-concentration control region referred to in Article 6 (1) 1 of the Seoul Metropolitan Area Readjustment Planning Act to the City area.
  • (2) Article 78 of the Act on Restriction on Special Cases concerning Local Taxation shall apply to the reduction or exemption of local taxes on real estate acquired by a person who intends to newly construct or expand a building for industrial purposes in an industrial complex.
  • (3) Except as provided in this Ordinance, matters regarding the reduction or exemption of local taxes shall be governed by the Busan Metropolitan City Framework Ordinance on Municipal Taxes.

• Article 7 (Location Support)
• • (1) If deemed necessary for attracting enterprises, the Mayor may directly purchase and lease industrial sites, or subsidize lease payments for enterprises that occupy lease sites which have been created as an industrial complex development project.
  • (2) If necessary for revitalizing the regional economy, the Mayor may lease or sell public property to enterprises attracted under this Ordinance pursuant to Articles 29 (1) 19 (c) and 38 (1) 28 of the Enforcement Decree of the Public Property and Commodity Management Act.
  • (3) The procedures and methods for the lease or sale of public property under paragraph (2) shall be governed by the Public Property and Commodity Management Act.

• Article 10 (Provision of Education and Training Subsidies)
• • (1) If a domestic enterprise conducts education and training to newly and regularly employ at least 20 Korean nationals, the Mayor may pay education and training subsidies within the budget.
  • (2) Employment subsidies under paragraph (1) may be provided for up to six months with a maximum of one million won per month per additional new employee exceeding 20 persons, and shall not exceed 600 million won per enterprise.

• Article 9 (Provision of Employment Subsidies for Research and Development Personnel)
• • (1) The Mayor may pay employment subsidies within the budget to an enterprise attracted for investment that newly hires research and development personnel to strengthen the capabilities of such enterprise.
  • (2) Employment subsidies under paragraph (1) may be provided for up to one year with a maximum of two million won per month per new research and development personnel, and shall not exceed 600 million won per enterprise.
  • (3) Employment subsidies for research and development personnel shall not be granted in duplicate to individuals who are eligible for subsidies under Article 8, and the scope of research and development personnel eligible for subsidies shall be prescribed by rule of the City.

• Article 10 (Provision of Education and Training Subsidies)
• • (1) If a domestic enterprise conducts education and training to newly and regularly employ at least 20 Korean nationals, the Mayor may pay education and training subsidies within the budget.
  • (2) Education and training subsidies under paragraph (1) be provided for up to six months, with a maximum of 500,000 won per education and training participant exceeding 20 persons, and shall not exceed 300 million won per enterprise.

• Article 11 (Provision of Capital Investment Subsidies)
• • (1) The Mayor may provide to a domestic enterprise that newly constructs or expands its place of business or relocates to the jurisdiction within a specified percentage range of the investment amount, the following subsidies:
    • 1. Costs to construct a place of business, such as a factory or research institute, construction purchase price, and facility equipment purchase costs;
    • 2. Costs necessarily incurred to install the facilities referred to in subparagraph 1;
    • 3. Any other matter deemed necessary by the Consultative Council.
  • (2) The Mayor may provide subsidies referred to in paragraph (1) in an amount up to five billion won per enterprise but not exceeding 20 percent of the capital investment amount by the enterprise, within the budget.

• Article 12 (Provision of Land Subsidies)
• • (1) If an enterprise located in another City/Do relocates its headquarters or factory to the City area, the Mayor may provide subsidies to cover part of the site purchase price.
  • (2) The Mayor may provide subsidies referred to in paragraph (1) in an amount up to five billion won but not exceeding 20 percent of the site purchase price, within the budget.

• Article 13 (Provision of Subsidies to Enterprises Investing in City Area)
• • (1) An enterprise that has operated its place of business within the City area for at least three years and relocates after expanding operations to more than double the current scale may be eligible for subsidies, and in such cases, the subsidies provided to such enterprise may be equivalent to those provided to enterprises that have relocated to the City area.
  • (2) Detailed criteria for the selection of enterprises eligible for support under paragraph (1) shall be prescribed by rule of the City.

• Article 14 (Limitations on Support)
• • (1) Support for domestic enterprises under Articles 7 through 13 shall be limited to enterprises engaged in the types of business referred to in Article 3, whose investment exceeds two billion won and the number of whose new regular employees exceeds 20.
  • (2) Notwithstanding paragraph (1), if deemed necessary to strategically attract a domestic enterprise with huge future growth potential, the Mayor may make exceptions to apply the provisions of this Ordinance after deliberation by the Consultative Council, in consideration of the characteristics of its type of business, regional contributions, job creation, technological development, ripple effects, etc., but he or she shall not apply the provisions in preference to other enterprises engaged in the types of business referred to in Article 3.
  • (3) If a domestic enterprise changes its simple ownership structure, or runs business in real estate trading business, real estate brokerage business, and real estate leasing business according to the Korean Standard Industrial Classification, construction business under subparagraph 2 of Article 2 of the Framework Act on the Construction Industry, consumer service business under Article 29 (3) of the Enforcement Decree of the Act on Restriction on Special Cases concerning Taxation, non-store retailing business under Article 2 of the Enforcement Rule of the Distribution Industry Development Act, or marine transportation brokerage business under subparagraph 5 of Article 2 of the Marine Transportation Act, such enterprise shall be excluded from eligibility for support.

• Article 15 (Special Cases concerning Support)
• The scale, limit, etc. of support for the knowledge service industry referred to in subparagraph 2 of Article 3 and a contact center referred to in subparagraph 3 of that Article may be prescribed by rule of the City after deliberation by the Consultative Council.

CHAPTER III SUPPORT FOR FOREIGN INVESTMENT

• Article 16 (Reduction or Exemption of Local Taxes)
• The Busan Metropolitan City Ordinance on Municipal Tax Reduction or Exemption shall apply to the reduction or exemption of local taxes for foreign investment under Article 9 of the Foreign Investment Promotion Act.

• Article 17 (Location Support)
• • (1) To attract foreign-invested enterprises, foreign public and private research institutes, regional headquarters of multinational enterprises, and operators of establishments that are involved in the improvement of the foreign-investment environment (hereinafter referred to as "foreign-invested enterprises, etc."), the Mayor may purchase or lease land or buildings within the budget to lease back to foreign-invested enterprises, etc.
  • (2) In cases of paragraph (1), the Busan Metropolitan City Ordinance on Public Property and Commodity Management shall apply to lease payments.

• Article 18 (Provision of Employment Subsidies)
• • (1) If foreign-invested enterprises, etc. newly hire and regularly employ at least 20 persons, the Mayor may provide such foreign-invested enterprises, etc. with employment subsidies within the budget to promote the creation of jobs.
  • (2) Employment subsidies under paragraph (1) may be provided for up to six months with a maximum of one million won per month per additional new employee exceeding 20 persons, and shall not exceed 600 million won per enterprise.

• Article 19 (Provision of Education and Training Subsidies)
• • (1) If a foreign-invested enterprise, etc. conducts education and training to newly and regularly employ at least 20 persons, the Mayor may provide education and training subsidies within the budget.
  • (2) Education and training subsidies under paragraph (1) may be provided for up to six months with a maximum of 500,000 won per month per education and training participant, and shall not exceed 300 million won per enterprise.

• Article 20 (Provision of Foreign Investment Subsidies)
• • (1) The Mayor may provide the following subsidies to a foreign-invested enterprise, etc. to cover funds used for purposes prescribed by rule of the City within a certain ratio of investments, in consideration of whether advanced technologies are required, technology transfer effects, the size of job creation, overlapping investments made by domestic enterprises, the appropriateness of location, etc.:
    • 1. Land subsidies;
    • 2. Capital investment subsidies;
    • 3. Consulting fees;
    • 4. Any other matter deemed necessary by the Consultative Council.
  • (2) Eligibility for subsidies referred to in paragraph (1) shall only apply to foreign investment prescribed in Article 14-2 (1) of the Foreign Investment Promotion Act.
  • (3) The subsidy support ratio under paragraph (1) shall be determined after deliberation by the Consultative Council, but shall not exceed 30 percent of the investment amount of the relevant enterprise within the budget.

• Article 21 (Support for Improving Living Conditions of Foreigners)
• The Mayor may provide subsidies to cover part of the business expenses within the budget, in any of the following cases:
  • 1. Where residential complexes are developed exclusively for foreigners;
  • 2. Where international schools are established or expanded;
  • 3. Any other case necessary to improve the living conditions of foreigners.

• Article 22 (Limitations to Support for Foreign Investment)
• The following subparagraphs shall apply to support for foreign investment under Articles 16 through 21:
  • 1. To be eligible for support for foreign investment, the relevant enterprise shall ensure that foreign investment accounts for at least 30/100 of the total investment;
  • 2. Where a foreign-invested enterprise intends to engage in any type of business referred to in Article 3, it may receive preferential support;
  • 3. Where a foreign-invested enterprise changes its simple ownership structure, or runs business in real estate trading business, real estate brokerage business, and real estate leasing business according to the Korean Standard Industrial Classification, construction business under subparagraph 2 of Article 2 of the Framework Act on the Construction Industry, consumer service business under Article 29 (3) of the Enforcement Decree of the Act on Restriction on Special Cases concerning Taxation, non-store retailing business under Article 2 of the Enforcement Rule of the Distribution Industry Development Act, or marine transportation brokerage business under subparagraph 5 of Article 2 of the Marine Transportation Act, such enterprise shall be excluded from eligibility for support;
  • 4. Where a foreign-invested enterprise is provided with any leased land or building, the lease payments to be reduced or exempted during the period of investment subsidies shall be included in the amount of subsidies provided under Article 20.

• Article 23 (Special Cases concerning Support)
• If a foreign-invested enterprise, etc. satisfies the strategic industry under subparagraph 1 of Article 3 or the knowledge service industry under subparagraph 2 of that Article, the scale, limit, etc. of subsidies may be prescribed by rule of the City after deliberation by the Consultative Council.

• Article 24 (Establishment of Foreign Investment Support Center)
• • (1) The Busan Metropolitan City Foreign Investment Support Center may be established to support foreign investment, including the management of various civil petitions arising in relation to foreign investment.
  • (2) If necessary for the efficient provision of services in relation to foreign investment, the Mayor may dispatch public officials under his or her control to the Busan Metropolitan City Foreign Investment Support Center.

• Article 25 (Designation of Advisors to Attract Foreign Investment)
• • (1) To promote the attraction of foreign investment, the Mayor may commission an attorney-at-law, certified public accountant, international investment expert, consulting company, entrepreneur, or any private sector expert (including a foreigner), as an advisor for Busan Metropolitan City to attract foreign investment (hereafter in this Article referred to as "advisor").
  • (2) The term of office of advisors shall be two years and may be renewed consecutively only twice.
  • (3) The Mayor may pay performance-based incentives within the budget to advisors, in accordance with their contributions to the attraction of foreign investment.
  • (4) The Mayor may enter into a business contract with a domestic or foreign consulting company, or any other company specialized in investment attraction to attract investment for large-scale projects such as infrastructure facilities, and pay them consulting fees, incentives, etc. based on foreign investment attraction achievements.

• Article 26 (Post Investment Management of Foreign-Invested Enterprises)
• The Mayor shall identify and resolve grievances experienced by foreign-invested enterprises, etc. located in the City area on a regular basis every year, and proactively endeavor to protect and support the continuation of their business operations.

• Article 27 (Dispatch Service from and to Private Institutions)
• • (1) If necessary for attracting foreign investment, the Mayor may request that private enterprises, or institutions or organizations related to investment attraction dispatch their experts and receive public officials under his or her control.
  • (2) The Mayor may subsidize dispatched workers to cover the expenses incurred in their activities under paragraph (1) within the budget.

CHAPTER IV BUSAN METROPOLITAN CITY INVESTMENT PROMOTION FUND

• Article 28 (Establishment of Fund)
• The Mayor shall establish the Busan Metropolitan City Investment Promotion Fund (hereinafter referred to as the "Fund") to promote the attraction of investment by domestic enterprises and of foreign investment pursuant to Article 159 of the Local Autonomy Act.

• Article 29 (Financial Resources of Fund)
• The Fund shall be raised from the following financial resources:
  • 1. Money transferred from the general account of the City;
  • 2. Earnings from the operation of the Fund;
  • 3. Other contributions, subsidies, revenues, etc.

• Article 30 (Use of Fund)
• The Fund shall be operated for the following purposes:
  • 1. Payment of various subsidies required for attracting enterprises and investments;
  • 2. Purchase of land for the purpose of sale in lots or lease;
  • 3. Payment of expenses incurred in attracting enterprises and investments, including consulting fees;
  • 4. Other business deemed necessary by the Mayor to attract enterprises and investments.

• Article 31 (Establishment of Fund Account)
• The Mayor shall establish an account of the Fund at the Busan Metropolitan City treasury designated pursuant to Article 38 of the Local Accounting Act to ensure clarity in the income and expenditure of the Fund.

• Article 32 (Deliberation Committee on Operation of Investment Promotion Fund)
• • (1) The Mayor shall establish the Busan Metropolitan City Deliberation Committee on the Operation of the Investment Promotion Fund (hereinafter referred to as the "Committee") to deliberate on the following matters regarding the management and operation of the Fund. In such cases, the Committee shall be deemed the Fund Management Deliberation Committee under Article 13 (1) of the Framework Act on the Management of Local Government Funds:
    • 1. Matters regarding the creation and financing of the Fund;
    • 2. Matters regarding the establishment and modification of the operational plan of the Fund;
    • 3. Analysis of the performance of the Fund operations;
    • 4. Matters regarding the settlement of the Fund;
    • 5. Any other matter necessary for attracting enterprises and investments, and for managing and operating the Fund.

• Article 33 (Composition of Committee)
• • (1) The Committee shall be composed of up to 20 members, including one chairperson and one vice chairperson.
  • (2) The Vice Mayor for Economic Affairs shall be the chairperson of the Committee, the Chief Officer of Digital Economic Innovation Office shall be the vice chairperson, and the members shall be appointed or commissioned by the Mayor from among the following persons, in consideration of gender:
    • 1. Public officials of at least Grade III from the City;
    • 2. Persons recommended by the Busan Metropolitan Council;
    • 3. Persons with extensive knowledge of and experience in the attraction of enterprises and investments;
    • 4. Persons with specialized knowledge in the operation of the Fund or other Fund-related fields.
  • (3) The term of office of commissioned members shall be two years and may be renewed consecutively only once: Provided, That the term of office of a member filling a vacancy shall be the remaining term of office of the predecessor.
  • (4) The chairperson shall represent the Committee and exercise overall control of the affairs of the Committee.
  • (5) A majority of the members of the Committee shall constitute a quorum and any resolution thereof shall require the concurring vote of a majority of those present.
  • (6) The Committee shall have one executive secretary to handle the affairs of the Committee, and the head of a division in charge of the attraction of investment shall serve as the executive secretary.
  • (7) The Busan Metropolitan City Working-Level Council on the Attraction of Investment (hereinafter referred to as the "Working-Level Council") may be composed and operated to review and coordinate agenda items to be deliberated on by the Committee and to handle the matters delegated by the Committee. Matters regarding the composition and operation of the Working-Level Council shall be prescribed by rule of the City.

• Article 34 (Dismissal of Members)
• The Mayor may dismiss a member whose term of office has not expired, in any of the following cases:
  • 1. Where the member becomes unable to perform the duties for health reasons;
  • 2. Where the member commits misconduct in connection with the duties;
  • 3. Where the member is deemed unfit to be a member due to neglect of duty, injury to dignity, or any other reason;
  • 4. Where the member fails to recuse himself or herself despite falling under any subparagraph of Article 35 (1);
  • 5. Where the member voluntarily expresses difficulty in the performance of the duties.

• Article 35 (Exclusion of, Challenge to, and Recusal of, Members)
• • (1) If a member of the Committee or the Working-Level Council falls under any of the following, he or she shall be excluded from any deliberation and resolution on the relevant agenda item:
    • 1. Where the member or his or her current or former spouse is a party to the relevant agenda item, or holds any right or liability jointly with a party to the agenda item;
    • 2. Where the member is or was a relative of a party to the relevant agenda item;
    • 3. Where the member has given testimony, made statements, rendered advice, conducted research, provided services, or made appraisals with regard to the relevant agenda item;
    • 4. Where the member, or the corporation, organization, etc., to which the member belongs, is the current or former representative of a party to the relevant agenda item;
    • 5. Where the member or his or her current or former spouse has worked as an executive officer or employee in the same institution with a party to the relevant agenda item.
  • (2) If a party to the relevant agenda item has reasonable grounds that a fair deliberation from a member cannot be expected, such party may file a motion for challenge to the member with the Committee or the Working-Level Council, and the Committee or the Working-Level Council shall make a determination thereon by resolution. In such cases, the member subject to challenge shall not participate in such resolution.
  • (3) If a member is subject to exclusion on a ground specified in any subparagraph of paragraph (1), he or she shall voluntarily recuse himself or herself from any deliberations on the relevant agenda item.

• Article 36 (Allowances)
• Allowances and travel expenses may be paid to commissioned members and relevant experts who have attended the meetings of the Committee or the Working-Level Council within the budget.

• Article 37 (Public Accounting Officials)
• Public accounting officials to manage the affairs in relation to income and expenditures of the Fund shall be designated as follows:
  • 1. Fund Operation Officer: Chief Officer of Digital Economic Innovation Office;
  • 2. Assistant Fund Operation Officer: Head of a division in charge of the Investment Promotion Fund;
  • 3. Fund Accounting Official: Public official of Grade V in charge of the Investment Promotion Fund.

• Article 38 (Application Mutatis Mutandis)
• Except as provided in this Ordinance, general accounting principles and practices shall apply to matters relating to the management and operation of the Fund.

CHAPTER V SUPPLEMENTARY PROVISIONS

• Article 39 (Special Cases concerning Large-Scale Investment Enterprises)
• • (1) The Mayor may provide special support to large-scale investment enterprises at home and abroad, to cover land purchase costs, construction costs, facility equipment purchase costs, installation costs, etc., in excess of the limit prescribed by this Ordinance.
  • (2) The scope of large-scale investment enterprises shall be as follows:
    • 1. A foreign-invested enterprise whose foreign direct investment is at least 200 million U.S. dollars (FDI) or the number of whose regular employees is at least 200;
    • 2. A domestic enterprise whose investment is at least 200 billion won or the number of whose regular employees is at least 200.
  • (3) The scale, methods, etc. of special support for large-scale investment enterprises shall be prescribed by rule of the City after deliberation by the Consultative Council.
  • (4) If the Mayor deems it necessary to improve the infrastructure of the relevant industrial complex, etc. and to lower the lot price thereof in order to attract large-scale investment, he or she may also provide administrative and financial support to an implementer of an industrial complex development project under Article 16 of the Industrial Sites and Development Act.

• Article 40 (Special Cases concerning Support for Green Technology or Green Industries)
• • (1) The Mayor may provide special support to enterprises and investors who have invested in green technology or green industries pursuant to Article 59 of the Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis, in excess of the limit prescribed by this Ordinance.
  • (2) The scale, methods, etc. of special support for enterprises and investors eligible under paragraph (1) shall be prescribed by rule of the City after deliberation by the Consultative Council.

• Article 41 (Support for Enterprises Installing New and Renewable Energy Facilities)
• If an investment enterprise installs a new and renewable energy facility for self-sufficiency on the premises of a factory or research institute, the Mayor may provide support in amount up to 200 million won per enterprise but not exceeding 30 percent of the facility cost.

• Article 42 (Post Management of Investment Enterprises)
• • (1) The Mayor may request that a subsidized enterprise and other interested parties submit data on any matter deemed necessary in connection with investment support. In such cases, relevant public officials may be requested to conduct an on-site inspection.
  • (2) The Mayor shall take necessary measures to ensure that subsidized enterprises implement their investment plan and shall continuously monitor and verify the implementation status of the initially submitted investment plan.

• Article 43 (Obligations of Enterprises)
• Enterprises which have been subsidized under this Ordinance shall be obligated to invest and conduct business in accordance with the investment plan, and the specific details shall be prescribed by rule of the City

• Article 44 (Cancellation and Recovery of Subsidies)
• • (1) If a person who has received various subsidies pursuant to this Ordinance falls under any of the following, the Mayor shall cancel such subsidies and recover all or part of the subsidies:
    • 1. Where he or she suspends or closes his or her business without good cause within the period prescribed by rule of the City pursuant to Article 43;
    • 2. Where he or she receives support by fraud or other improper means;
    • 3. Where he or she abandons or reduces business or investment within the period prescribed by rule of the City pursuant to Article 43 from the date of receipt of subsidies for the business eligible for support;
    • 4. Where he or she is found to have not met the prerequisites which are directly related to the provision of the relevant subsidies;
    • 5. Where the construction of a factory facility, etc. is significantly behind the schedule, or where the completion of such construction is deemed impossible;
    • 6. Where a subsidized enterprise relocates to another City/Do without good reason within five years from the investment completion date;
    • 7. Where he or she refuses the submission of data or on-site inspections by relevant public officials under Article 42;
    • 8. Where the Consultative Council deems it impossible to attain the objectives of the subsidy support.
  • (2) Enterprises that have received subsidies under Articles 8 through 10, 18, and 19 shall maintain the number of employees subject to subsidies for at least five years, and if the number of employees decreases within five years, all or part of the subsidies may be recovered in proportion to the decreased number of employees.
  • (3) The Mayor may compulsorily collect the subsidies to be recovered under paragraph (1) in the same manner as local taxes are collected.
  • (4) Except as provided in this Ordinance, the Busan Metropolitan City Ordinance on the Management of Local Subsidies shall apply to the execution of subsidies.

• Article 45 (Prohibition of Provision of Concurrent Support)
• Special support for large-scale investment enterprises under Article 39 and subsidies under Articles 11 through 13 and 20 shall not be provided concurrently.

• Article 46 (Limits of Subsidies)
• The total amount of subsidies provided to an enterprise which has invested in the City area shall not exceed 30 percent of the total amount of investment by the enterprise.

• Article 47 (Eligibility Criteria for Support to Enterprises Subsidized by the State)
• The Standards for Providing State Financial Support to Local Governments for Promoting Local Investment by Enterprises publicly notified by the Minister of Trade, Industry and Energy, the Standards for Providing State Financial Support to Local Governments for Attracting Repatriating Enterprises, Article 14-2 of the Foreign Investment Promotion Act, and similar provisions shall apply to support to enterprises which were located in the Seoul Metropolitan area but have relocated to the City area, becoming eligible for national subsidies, repatriating enterprises, newly constructed or expanded enterprises, enterprises creating local jobs for mutual growth, enterprises attracting foreign investment, and any other enterprise.

• Article 48 (Support for Investment Attraction Activities)
• • (1) The Mayor shall proactively support the activities undertaken by Gus and Guns, and the Busan-Jinhae Free Economic Zone Authority to facilitate the attraction of investment by domestic enterprises and of foreign investment.
  • (2) The Mayor may subsidize corporations or organizations engaged in any of the following business to cover all or part of the expenses incurred therein, within the budget, in order to promote the attraction of enterprises and investments:
    • 1. Analysis of the status of attracting enterprises and investments, and formulation of strategies to attract enterprises and investments;
    • 2. Identification of demand for attracting enterprises and investments, and attraction activities;
    • 3. Conventions and investment seminars to promote the attraction of enterprises and investments;
    • 4. Human resources development and employee morale enhancement programs to develop a contact center;
    • 5. Domestic and international public relation activities to attract enterprises and investments.
  • (3) The Busan Metropolitan City Ordinance on the Management of Local Subsidies shall apply to the methods, procedures, etc. for subsidization to cover expenses under paragraph (2).

• Article 49 (Investment Attraction Awards)
• • (1) The Mayor may provide an investment attraction award to a person who is recognized for having made significant contributions to the attraction of domestic enterprises or foreign investment within the budget after deliberation by the Consultative Council.
  • (2) Matters regarding the payment of investment attraction awards shall be prescribed by rule of the City.

ADDENDA

• Article 1 (Enforcement Date)
• This Ordinance shall enter into force on the date of its promulgation.

• Articles 2 (Effective Period)
• Articles 17 through 30 shall be effective until December 31, 2023.

• Article 3 (General Transitional Measures)
• The previous provisions shall apply to attraction, application for subsidies, support, reduction or exemption, and other acts performed pursuant to the previous provisions before this Ordinance enters into force.

• Article 4 (Transitional Measures regarding Busan Metropolitan City Enterprise Attraction Committee)
• A member appointed or commissioned as a member of the Busan Metropolitan City Enterprise Attraction Committee pursuant to the previous provisions as at the time this Ordinance enters into force shall be deemed appointed or commissioned as a member of the Committee under this Ordinance. In such cases, the term of office shall be the remainder of the previous term of office, and no member who is in office with his or her term of office renewed shall serve further terms of office after the term of office expires.

• Article 5 Omitted.

ADDENDA

• Article 1 (Enforcement Date)
• This Ordinance shall enter into force on the date of its promulgation.

• Articles 2 and 3 Omitted.

ADDENDUM

• This Ordinance shall enter into force on the date of its promulgation.

ADDENDUM

• This Ordinance shall enter into force on the date of its promulgation.

ADDENDA

• Article 1 (Enforcement Date)
• This Ordinance shall enter into force three months after the date of its promulgation.

• Article 2 (Effective Period)
• Articles 28 through 38 shall be effective until December 31, 2023.

• Article 3 (Transitional Measures)
• The previous provisions shall apply to attraction, application for subsidies, support, reduction or exemption, and other acts performed pursuant to the previous provisions before this Ordinance enters into force, but if the provisions of this Ordinance are more favorable to enterprises, the standards prescribed in this Ordinance may apply.