[H2 ECONOMIC POLICY] Gov’t offers tax-breaks for middling firms returning home

[THE INVESTOR] Middling companies that replace overseas production facilities with those based in Korea will be given a three-year exemption from corporate and income taxes, the Ministry of Strategy and Finance announced on June 27.

In addition, the two taxes will be cut by half for additional two years after the initial exemption period. Any foreign worker from concerned companies’ overseas facilities hired to work in Korea will be provided with the E-7 visa, the ministry said.

Middling companies refer to those that fall in between SMEs and large enterprises. 

Companies that meet any one of the four main criteria are categorized as a middling company immediately without review.

The criteria are, a standing workforce of more than 1,000, total assets exceeding 500 billion won (US$425.8 million), capital of more than 100 billion won, and three-year sales average exceeding 150 billion won.

Companies that have more than 300 workers, or whose capital exceeds 8 billion won can obtain middling company status after a three-year review period.

By Choi He-suk (cheesuk@heraldcorp.com)