How Should Foreign-Invested Companies Prepare for a Cash Grant Application in Korea?

【Foreign Investment Practical Guide】How Should Foreign-Invested Companies Prepare for a Cash Grant Application in Korea? — From eligibility and investment planning to review, negotiation, and consulting fees — One of the most important investment incentives available to foreign companies establishing manufacturing or R&D facilities in Korea is the Foreign Investment Cash Grant program. Foreign companies investing in technology-intensive sectors such as semiconductors, secondary batteries, advanced chemicals, materials, parts and equipment, biotechnology, and future mobility should consider cash grant eligibility from the early stages of their investment planning. A cash grant, however, is not a conventional subsidy that is automatically calculated as a fixed percentage of the investment amount. The Korean government considers a range of factors, including the foreign investment structure, eligible industry, technology level, job creation, contribution to Korea’s supply chain, regional economic impact, and competition with alternative investment locations in other countries. The final grant amount is determined through evaluation and negotiation between the government and the investor. ​ For this reason, the practical focus should not simply be on preparing the application form. More importantly, the entire investment project should be structured and presented in line with the government’s cash grant evaluation criteria.