Cash Grant Program intends to support the funds required for certain usages through negotiations with foreign investments in cash when the foreign investment is qualified with certain requirements to attract the foreign investment which is considered to contribute the national economy development. The foreign investment ratio should be more than 30% (incase of the foreign investment by contribution to a non-profit corporation, the ratio of contributed amount of foreign investor against the total contributed capital) and the facilities or businesses as followings should be installed or added: – the high-tech accompanying business and industrial support service business (more than $10 million, specified in the article 121-2(1)1 of Restriction of Special Taxation Act)

– Parts and material business (more than $10 million, specified in the article 2(1) of Act on Special Measures for Promotion of Part/ Material Specialized Company, etc.)

The range of parts/materials: Parts and materials separately set forth by the Minister of Knowledge & Economy in accordance with article 2 of Enforcement Decree of Act on Special Measures for Promotion of Part/ Material Specialized Company, etc.

In case of new installation or addition of research facilities for performing R&D activities on the businesses in accordance with article 121-2(1)1 of Restriction of Special Taxation Act, the regular employment of dedicated researchers composed with either more than 3 years’ experiences in related areas with bachelor’s degrees or master degree holders in the related areas should be more than 10 persons (the requirement of more than $5 million investment deleted: enforced as of ’07. 10. 28)

In other cases where the Foreign Investment Committee decided it is necessary (for example, the attraction of regional headquarters of multinational companies)

– In case of establishing headquarters which supervise more than 2 countries as a foreign company which owns businesses in more than 3 countries.

• In case of performing regional strategic industry in accordance with article 2(4) of Special Act on Balanced National Development, where the applicable industry is deemed to contribute to the development of the local economy.

O Cash grants can be used for following purposes:

– The purchase cost or rents of the land for the installation of factory or research facilities

– The construction costs of factory or research facilities

– The acquisition cost of capital goods or research equipment for business or research

– Installation costs of infrastructure such as electric, communication facilities, etc. required for the construction of a factory or research facilities

– Employment subsidies and training grants