Cash Grant for Foreign-Invested Companies

MOTIE Cash Grant for Foreign-Invested Companies

Funds foreign-invested Korean innovation centers and regional headquarters through negotiated establishment support.

MOTIE's Cash Grant for Foreign-Invested Companies is a discretionary, continuously-open grant program providing direct cash support to foreign companies that establish R&D centers or regional headquarters in South Korea's advanced strategic industries. The legal basis is Article 20.2 of the Enforcement Decree of the Foreign Investment Promotion Act. Eligible cost categories span land acquisition and buildings, construction, capital equipment, infrastructure, employment subsidies, and training subsidies. Grant coverage reaches up to 75% of eligible costs for R&D centers in semiconductors and AI, or for regional headquarters of global enterprises — the highest support intensity in the Korean FDI incentive toolkit.

Eligibility requires that the investing entity acquire newly issued stocks with foreign ownership of at least 30%, consistent with the definition of foreign direct investment under Korean law. Target investment types include R&D centers in semiconductors, AI, secondary batteries, biotech, and other advanced strategic industries, as well as manufacturing operations in materials, parts, and equipment. All award amounts are individually negotiated — no published minimum or maximum exists. The MOTIE evaluation committee, which includes government officials alongside technology, finance, and industry experts, uses an undisclosed scoring framework; documentation that the investor has received competing offers from other countries is recognized as a valid strengthening factor in negotiations.

The practical first step for any prospective applicant is pre-application consulting at Invest Korea (KOTRA), the official entry point before a full submission is prepared. KOTRA advises on positioning, eligibility confirmation, and documentation requirements. Because awards are bespoke and fully negotiated, the value of early engagement with Invest Korea advisors before committing to a site selection decision cannot be overstated — the grant terms are influenced by the competitive context of the investment decision.