GSFIC

News Letter

01.2020

구독

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U-TURN ACT AMENDED AND PROMULGATED TO BE ENFORCED IN MARCH,2020

  • THE KNOWLEDGE SERVICE AND ICT INDUSTRIES ARE ADDED TO "SUPPORT" FOR U-TURN BUSINESSES
  • THE SPECIAL PROVISIONS ON THE USE OF NATIONAL AND PUBLIC LANDS SHALL BE NEWLY ESTABLISHED AND THE SUPPORT WINDOW FOR U-TURN BUSINESSES WITH KOTRA UNIFIED

U-TURN ACT AMENDED AND PROMULGATED TO BE ENFORCED
IN MARCH,2020

The government authorities promulgated an amendment to u-turn act (act on "support" for returning to Korea by the domestic companies entering overseas).


〈Amended Content to U-turn Act〉

Item Existing Act Amendment
Expanded industry Manufacturing Manufacturing ICT* Knowledge Service**
Special provisions
on the use of
national and public
lands
- private(free) contract on national and public
lands, long-term lease(50 years) and
calculation exceptions and reductions on rent
(up to 50%)
Unified support
center
support center for u-turn
companies in KOTRA
the support window unified to u-turn
companies' support center

* ICT(13) by standard industry classification :software development and supply, broadcasting, public mail, and etc.

** Knowledge Service Business(34) by act on industry development : software development and supply, telecommunication, cinema, production of video and broadcast program, publishment of audio works, information service computer programing and engineering.


In accordance with this amendment to u-turn act, the support for u-turn businesses extends from manufacturing to ICT and knowledge services. So far, the support for the u-turn companies has been, by standard industry classification, limited to businesses in manufacturing sector.
But this amendment to u-turn act is expected to broaden the support and to create the demand of new u-turn companies by extending it to ICT and knowledge service in addition to the existing manufacturing industry.


The special provisions on the use of national and public lands for the u-turn companies shall be newly established.
The companies selected as " u-turned" shall benefit from legally accepted private contract, long-term lease(50 years), calculation exceptions and reductions on rent(up to 50%), and etc. The increase of u-turn companies' location support to foreign investment level is expected to help alleviate the burden of investment.


The role of KOTRA, u-turn companies' support center, shall be expanded ,and the selection of u-turn companies and support window unified.
The regulations on civil affairs administration such as registration at KOTRA, support center, transfer to document-processing agencies, and etc. shall be newly established to promote the convenience of the company.


The MOTIE expects the revised bill to increase the demand of u-turn companies entering overseas such as ICT and knowledge service businesses and plans to complete an amendment to enforcement decree and rules of the u-turn act until the effective date(March,11,2020).

Sources and Inquiry: Dept. of Overseas Investment, MOTIE

TEL. 044-203-4093