BUSAN METROPOLITAN CITY ORDINANCE ON ATTRACTION OF AND SUPPORT FOR ENTERPRISES IN BLOCKCHAIN REGULATION-FREE SPECIAL ZONES
Enacted by Ordinance No. 6678, Apr. 13, 2022
- Article 1 (Purpose)
- The purpose of this Ordinance is to prescribe matters necessary for attracting enterprises into blockchain regulation-free special zones and for supporting the enterprises that have been attracted, thereby developing the blockchain industry and contributing to revitalization of the local economy.
- Article 2 (Definitions)
- The terms used in this Ordinance are defined as follows:
- 1. The term "blockchain" means a technology for realizing a distributed trust infrastructure, designed to make it difficult for any person to tamper with data, by verifying, storing, and executing information and value through a distributed network by all participants;
- 2. The term "regulation-free special zone" means a zone designated to ensure the promotion of new industries based on new technology through the postponement and exemption of various regulations pursuant to subparagraph 13 of Article 2 of the Act on Special Cases concerning the Regulation of Regulation-Free Special Zones and Special Economic Zones for Specialized Regional Development (hereinafter referred to as the "Act");
- 3. The term "blockchain industry" means an industry that develops, manufactures, produces, or distributes products, systems, data, software, virtual assets, etc. related to blockchain technology or provides services related thereto;
- 4. The term "attraction of blockchain enterprises” (hereinafter referred to as "attraction of enterprises") means an activity to conclude any of the following memorandums of understanding on investment or an agreement equivalent thereto:
- (a) Attracting an enterprise conducting business management in the field of block chain industry (hereinafter referred to as "blockchain enterprise") to be relocated or established within the jurisdiction of Busan Metropolitan City (hereinafter referred to as the "City");
- (b) Attracting foreign investment defined in Article 2 (1) 4 of the Foreign Investment Promotion Act to blockchain enterprises located in the jurisdiction of the City.
- Article 3 (Responsibilities)
- The Mayor of Busan Metropolitan City (hereinafter referred to as the "Mayor") shall endeavor to provide administrative and financial support necessary for the attraction of enterprises into a blockchain regulation-free special zone (hereinafter referred to as "free special zone") and for the attracted enterprises.
- Article 4 (Formulation of Support Plans)
- (1) The Mayor shall formulate and implement a plan to provide support for the attraction of enterprises into a free special zone and for the attracted enterprises (hereinafter referred to as “support plan") every two years, including the following matters:
- 1. Matters regarding the preparation of an occupancy space;
- 2. Matters regarding the securing of a site and the provision of an occupancy space to facilitate investment;
- 3. Matters regarding tax support and tax reduction or exemption at the time of occupancy;
- 4. Matters regarding education for children of employees;
- 5. Matters regarding the operation and installation of facilities;
- 6. Matters regarding the selection of and support for exemplary enterprises;
- 7. Other matters that the Mayor deems necessary for attracting enterprises and supporting the attracted enterprises.
- (2) The Mayor shall formulate and implement annual action plans in accordance with the support plan under paragraph (1).
- Article 5 (Provision of Tax Support and Reduction of and Exemption from Charges)
- (1) The Mayor may grant tax reduction or exemption to develop the blockchain industry through attraction of enterprises into free special zones and support for the attracted enterprises pursuant to Article 96 (1) of the Act.
- (2) The Mayor may reduce or exempt charges for blockchain enterprises located in a free special zone pursuant to Article 96 (2) of the Act.
- (3) Local taxes on foreign investment may be reduced or exempted pursuant to Article 78-3 of the Act on Restriction on Special Cases concerning Local Taxation.
- (4) The Mayor may provide financial support within the budget, if necessary to develop the blockchain industry in a free special zone.
- (5) The Mayor may provide administrative support to help attracted enterprises to take occupancy and to secure an occupancy space.
- (6) When the headquarters of an attracted enterprise is relocated, the Mayor may determine a deferment period for reduction and exemption of taxes or charges in consultation with the attracted enterprise until the relocation of employees and their families is completed.
- Article 6 (Lease and Sale of Public Property)
- (1) Notwithstanding the Public Property and Commodity Management Act, the Mayor may lease or sell public property to a foreign-invested company under a negotiated contract pursuant to Articles 13 and 13-3 of the Foreign Investment Promotion Act, if deemed necessary for attracting enterprises to a free special zone.
- (2) Notwithstanding the Public Property and Commodity Management Act, where the Mayor leases public property to foreign-invested companies, etc. in order to attract enterprises in a free special zone, he or she may reduce or exempt rents pursuant to Article 13-2 of the Foreign Investment Promotion Act.
- (3) The Mayor shall endeavor to give preference to blockchain enterprises for the bid of a lease or sale of other public property.
- Article 7 (Startup and Technical Support)
- (1) The Mayor may provide the following support to enterprises that intend to start up a business by using the blockchain technology or blockchain enterprises:
- 1. Matters regarding collaborative projects, etc. between industries, universities, research institutes, and governments for improving the technological capabilities of blockchain enterprises and promoting research and development;
- 2. Matters regarding support for registration of application, such as domestic and international patents and utility models, and protection of their technologies;
- 3. Matters necessary for creating an export base for blockchain enterprises;
- 4. Matters regarding domestic and international public relations activities for products promotion, market expansion, etc. of blockchain enterprises;
- 5. Other matters deemed necessary by the Mayor to strengthen the competitiveness of blockchain enterprises and to revitalize the local economy.
- (2) The Mayor may provide blockchain enterprises with support for the installation and maintenance of infrastructure, such as roads, waterworks and sewerage systems, communications networks, and public parking lots, in order to attract foreign investment under Article 2 (1) 4 of the Foreign Investment Promotion Act.
- Article 8 (Establishment of Support Committee for Attracting Enterprises)
- (1) The Mayor may establish the Busan Metropolitan City Support Committee for Attracting Enterprises (hereinafter referred to as the "Committee") to deliberate and seek advice on the following matters for expanding the attraction of enterprises in free special zones and supporting the attracted enterprises:
- 1. Matters regarding special cases and support under Articles 92 through 98;
- 2. Matters regarding securing of sites;
- 3. Matters regarding occupancy spaces;
- 4. Matters regarding the educational environment for children of employees;
- 5. Matters regarding tax support and reduction or exemption of charges;
- 6. Matters regarding the deferment period for reduction and exemption of taxes or charges until the relocation of the headquarters of the attracted enterprise is completed;
- 7. Other matters necessary for expanding the attraction of enterprises and supporting the attracted enterprises.
- (2) In order to deliberate and seek advice on the matters referred to in the subparagraphs of paragraph (1), the Committee may hear opinions from relevant public officials, executive officers and employees of public institutions, persons with expertise in the blockchain technology, and may request the submission of data, etc. from relevant institutions, etc.
- (3) Matters subject to deliberation by the Committee shall be deliberated on by the Operating Committee for Busan Blockchain Regulation-Free Special Zones under Article 3 of the Ordinance on Establishment and Operation of the Operating Committee for Busan Blockchain Regulation-Free Special Zones. In such cases, the Operating Committee for Busan Blockchain Regulation-Free Special Zones shall be construed as the Committee.
- Article 9 (Establishment and Operation of Facilities)
- The Mayor may establish and operate the following facilities in order to expand the attraction of enterprises and support the attracted enterprises:
- 1. Research and exhibition facilities for promoting activities for attraction of enterprises and for fostering the development of the attracted enterprises;
- 2. Business incubators and occupancy support facilities to foster blockchain enterprises through the attraction of enterprises;
- 3. Shared equipment facilities related to the activities for attraction of enterprises;
- 4. Other facilities deemed necessary for the fostering, etc. of blockchain enterprises.
- Article 10 (Selection of Exemplary Enterprises)
- (1) The Mayor may select blockchain enterprises with exceptional technology, competitiveness, etc., which have made contributions to the development of the local economy and local communities, as exemplary enterprises.
- (2) The Mayor shall select exemplary enterprises under paragraph (1) from among any of the following enterprises every year:
- 1. A leading enterprise in the blockchain industry promoted by the City, which holds the core technological capabilities and has a great ripple effect in terms of technology transfer, etc. through collaboration between enterprises;
- 2. An enterprise which has a great contribution to the revitalization of the local economy and development of local communities, such as employment growth, labor-management cooperation, and investment, and which has continuously grown;
- 3. An enterprise which receives an award from the central government, local governments, or business support agencies, in relation to business activities.
- (3) The Mayor may provide support or honorable treatment for exemplary enterprises selected under paragraph (2) for up to three years pursuant to the Busan Metropolitan City Ordinance on Small and Medium Enterprises Promotion Fund.
ADDENDA
- Article 1 (Enforcement Date)
- This Ordinance shall enter into force on the date of its promulgation.
- Article 2 Omitted.
