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
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