Newly established subsidiaries and joint ventures that invest in non-capital regions will be eligible for government subsidies. Corporations that introduce 70% or more domestically produced equipment can receive preferential subsidy benefits.
The Ministry of Trade, Industry and Resources said on the 19th that it revised parts of the "Standards for state financial support for attracting local investment corporations by local governments" (Local Investment Promotion Subsidy Notice), centered on these measures, and will implement them starting on the 20th.
The Local Investment Promotion Subsidy is a system in which a certain percentage of the investment amount is supported jointly with local governments when corporations in the capital region transfer to non-capital areas or invest in new or expanded production facilities.
First, the subsidy application eligibility, previously limited to corporations with at least one year of operation, was eased to include newly established subsidiaries and joint ventures.
Incentives to strengthen the supply chain for domestically produced equipment will also be introduced. If 70% or more of machinery and equipment purchase costs are for domestically produced equipment, the subsidy support rate will be preferentially increased by 2 percentage points. Purchase costs for used equipment, which had been excluded from support, will also be recognized as investment amounts.