Siheung Expands Business Incentives With Subsidies of Up to 600 Million Won

Siheung, a city in Gyeonggi Province, has strengthened its financial support for companies investing in the area, offering eligible businesses subsidies of up to 600 million won and additional incentives for creating local jobs.

The expanded framework took effect under a fully revised ordinance designed to promote investment. It allows the city to designate qualifying companies as investment-attraction enterprises and provide support for property, construction, rent and employment costs.

Local advanced strategic industry companies and foreign-invested firms can qualify if they invest at least 5 billion won to establish or expand a headquarters, factory or research facility, or if they hire at least 30 permanent employees. Companies currently based outside Siheung may also qualify by investing at least 10 billion won in a new or expanded facility or by hiring at least 50 employees. Foreign-invested companies operating businesses eligible for tax reductions can also be designated.

For qualifying companies that construct facilities in Siheung, the city plans to subsidize land purchase and construction expenses according to the size of the investment. Businesses acquiring an existing building may receive help with acquisition costs. Support in either case can reach 500 million won.

Companies that lease buildings for local investment may receive half of their rental costs for up to two years, capped at 100 million won. Together, the property and rental measures create a maximum standard support package of 600 million won.

The ordinance also establishes a separate route for exceptionally large projects. A company investing more than 100 billion won or adding more than 300 permanent employees may receive a special subsidy without a preset ceiling, provided the Siheung City Council approves the assistance and funding is available within the municipal budget.

Employment incentives are aimed directly at residents. An eligible company that newly hires a Korean national registered as a Siheung resident may receive 700,000 won per employee each month for up to one year. The employment-creation subsidy is capped at 100 million won per company.

Siheung may also assist investors with permits, road and water infrastructure, and local tax reductions when officials determine such support is needed to secure a project. City officials described the revised ordinance as a foundation for attracting anchor companies in advanced and future industries while expanding high-quality employment.

A research site in the Baegot district of the Gyeonggi Free Economic Zone is expected to become the first project considered under the revised rules. Bio-FD&C, DuChemBio and Chong Kun Dang have submitted notices of intent to participate in the site competition. Siheung plans to accept formal applications through October 29 and select a preferred bidder on November 5.