Foreign Investors > Foreign investment support system > Cash support > Payment procedures
To receive cash support from the State government, a cash support application shall be submitted to the Minister of Knowledge Economy. To receive cash support from a local government, such request shall be made to the head of the local government according to the methods and procedures prescribed by the corresponding local government's municipal ordinances.
 Payment procedures of cash support
To receive cash support from the State government, a cash support application shall be submitted to the Minister of Knowledge Economy.

To receive cash support from a local government, such request shall be made to the head of the local government according to the methods and procedures prescribed by the corresponding local government's municipal ordinances.
Request for cash support
To receive cash support from the State government, a cash support application (Form No. 11-2 of the 「Enforcement Rule of the Foreign Investment Promotion Act」) shall be submitted to the Minister of Knowledge Economy with the following documents (Article 9-3 of the 「Enforcement Rule of the Foreign Investment Promotion Act」):
1. Written investment plan and summary;
2. Financial statements of the requester (This requirement shall only apply to corporations, and if the investment amount increases, the corresponding foreign-capital invested company’s financial statements shall be included);
3. Details of each source of investment funds and copy of its confirmation letter;
4. Copy of the foreign investment report (This shall only apply when a report is made); and
5. Opinion letter if it is received from a project manager regarding foreign investment.
※ An investment plan shall include the following items (Article 20-3.(1) of the 「Enforcement Decree of the Foreign Investment Promotion Act」):
a. Management performance and financial status of the requester (Status of the holding company and overseas subsidiaries, business report, and other related data)
b. Total investment amount and foreign investment amount
c. Location plan (Area, size, acquisition method, costs, etc.)
d. Annual investment plan for the next five years (Breakdown by fixed asset items such as land, building, facility, etc.)
e. Annual plan to raise investment and working funds for the next five years (Breakdown by internal funding, external funding, cash support, etc. )
f. Detailed business plan (Business content, products, technology content and level, production process, upstream and downstream industries, specific business relationship with the holding company and overseas subsidiaries, etc.)
g. Bill collecting status and future prospects in domestic and foreign markets (Status and prospects of potential competing companies at home and abroad)
h. Business prospects of the invested company for the next ten years (Specific data on investment gains such as ROE and NCV and calculation basis, and business and financial risks and their management plan)
i. Estimated financial statements for the next five years (Expense items that constitute the cost of sales, and concrete assumptions and basis data about sales)
j. Annual employment plan and summary for the next five years (Manpower by science engineering school career, manpower by wage level, comparison with the average wage in the industry, etc. Regular and non regular jobs, and Koreans and foreigners shall be distinguished in the document)
k. Research and development plan for the next five years (Education and training cost, whether an annex research institute is established, size of R&D manpower by school career, size of R&D investment, joint research with domestic companies and research institutes, and other matters)
l. Reasons Korea is chosen as an investment target country (Its strengths and weaknesses when compared to alternative investment countries)
m. Possible contributions to the local and national economy for the next five years (Production, export, domestic sale, size of the direct and indirect employment, payment of taxes, upstream and downstream effects with suppliers of raw and subsidiary materials and customers of final products, whether to serve as an Asian regional headquarters, etc.)
n. Other matters deemed necessary by the Minister of Knowledge Economy to decide whether to provide cash support
Handling requests for cash support
Negotiations for cash support [Article 5 of the 「Operation Guidelines on the Cash Support System」(Ministry of Knowledge Economy Notice No. 2010-299)]
- Negotiations can take place with the Minister of Knowledge Economy regarding cash support after the submission of a cash support application. Also, consultation can be had before submitting an application by making a request verbally or in writing to the Minister of Knowledge Economy.
- A public official to hold a negotiation or provide consultation will be notified to an application submitter or consultation requester.
Assessment and decision on cash support applications [Articles 6 & 7 of the 「Operation Guidelines on the Cash Support System」(Minister of Knowledge Economy Notice No. 2010-299)]
- Once a cash support application is submitted, whether the relevant investment accompanies high technology, the effect of technology transfer, the size of job creation, whether the investment overlaps with any domestic investment, the relevancy of the location in which the investment is made, its impact on the regional and national economy, the viability of the investment, and other matters are assessed (Article 6.(1) of the 「Operation Guidelines on the Cash Support System」(Minister of Knowledge Economy Notice No. 2010-299).
- When there is a request for cash support, the Minister of Knowledge Economy consults with the Minister of Strategy and Finance and heads of the local governments concerned and a decision is reached through deliberation by the Foreign Investment Committee. A foreign support contract is concluded and then cash is paid.
- Without a special reason, a cash support decision shall be made within 60 days from the date when the application is received and the due date may be extended by up to 30 days.