(Continued from previous issue) * Article 8 (Foreign Investment in Form of Long-Term Loan) (1) Where a foreigner intends to make a foreign investment as prescribed in Article 2 (1) 4 (b), he shall, in advance, make report to the Minister of Commerce, Industry and Energy in accordance with the Ordinance of the Ministry of Commerce, Industry and Energy. The same shall apply to any modification of matters as prescribed by the Presidential Decree, such as the introduction amount and conditions of loans, among those reported contents. (2) Where a report is made under paragraph (1), the Minister of Commerce, Industry and Energy shall, without daly, issue a certificate of acceptance of said report to the reporter. CHAPTER III MEASURES FOR SUPPORTING FOREIGN INVESTMENT * Article 9 (Tax Reduction and Exemption with respect to Foreign Investments) With respect to foreign investments, taxes such as corporate tax, income tax, acquisition tax, registration tax, property tax and aggregate land tax may be reduced or exempted in accordance with the Restriction of Special Taxation Act. * Articles 10 through 12 Deleted. * Article 13 (Rental and Sale of State or Public Property) (1) Notwithstanding the relevant provisions of the State Properties Act and the Local Finance Act, the Minister of Finance and Economy, the Administrative Agency For State Properties, or the head of a local government may allow, by means of a contract ad libitum, a foreign-capital invested company to use, make profits from, rent (hereinafter referred to as "rental"), or buy land or factories owned by the central government or a local government, or other properties belonging to the State or the public (hereinafter referred to as "land"). (2) Where a foreign-capital invested company rents land owned by the central government or a local government in accordance with the provisions of paragraph (1), the rental period may be up to fifty years notwithstanding the provisions of Articles 27 (1) and 36 (1) of the State Properties Act and of Articles 82 (2) and 83 (2) of the Local Finance Act. (3) Where a foreign-capital invested company rents land owned by the central government or a local government in accordance with the provisions of paragraph (1), the building of a factory and/or other permanent facilities on the land may be allowed, notwithstanding the provisions of Article 24 (3) of the State Properties Act and of Articles 82 (2) and 83 (2) of the Local Finance Act. In this case, the land may be rented on the condition that the factory and/or other facilities in question be given free of charge to the central government or a local government, or be removed completely so that the land may be given back to the central government or a local government in its original state at the time of the completion of the rental period of the land under consideration, with consideration given to the type of factory and/or other facilities concerned. (4) Notwithstanding the provisions of Articles 25 (1) and 38 of the State Properties Act and of Articles 82 (2) and 83 (2) of the Local Finance Act, the rental fee of the land which has been rented in accordance with the provisions of paragraph (1) shall be prescribed by the Presidential Decree and may be indicated in a foreign currency where necessary. (5) Where a foreign-capital invested company that wishes to purchase the land in accordance with the provisions of paragraph (1) is acknowledged to have difficulty making a lump-sum payment for the purchase price, the payment may be made in installments, under the conditions prescribed by the Presidential Decree, notwithstanding the provisions of Article 40 (1) of the State Properties Act and of Article 83 (2) of the Local Government Finance Act. (6) Where a foreign-capital invested company operating businesses prescribed by the Presidential Decree rents land owned by the central government that is classified in one of the following subparagraphs, the Minister of Finance and Economy or the Administrative Agency for State Properties may reduce or exempt, through consultation with the Minister of Commerce, Industry and Energy, the rental fee of the land, under the conditions prescribed by the Presidential Decree, notwithstanding the provisions of Article 36 of the Industrial Placement and Factory Construction Act and of Article 38 of the Industrial Sites and Development Act: 1. Land located within a foreign investment zone as prescribed by the provisions of Article 18; 2. Land located within an industrial complex exclusively for foreign companies as prescribed by the provisions of Article 35-3 (1) of the Industrial Placement and Factory Construction Act; and 3. Land, etc, located within a national industrial complex as prescribed by the provisions of Article 6 of the Industrial Sites and Development Act (hereinafter referred to as the "national industrial complex"). (7) Where the head of a local government rents land owned by his local government to a foreign-capital invested company, he may reduce or exempt the rental fee of the land under the conditions prescribed by the Presidential Decree, notwithstanding the provisions of Articles 82 (2) and 83 (2) of the Local Finance Act. (8) Where the land that is rented to a foreign-capital invested company with its rental fee reduced or exempted in accordance with the provisions of paragraphs (6) and (7) above is located within an industrial complex prescribed by the provisions of subparagraph 5 of Article 2 of the Industrial Sites and Development Act, the rental period may be up to fifty years notwithstanding the provisions of Article 38 of the said Act. (9) The rental period under the provisions of paragraphs (2) and (8) above may be renewed. The renewed rental period in this case may not exceed the period prescribed by the provisions of paragraphs (2) and (8) above each time the renewal is made. * Article 14 (Support Measures for Foreign Investment Inducement Activities of Local Governments) (1) Where a local government requests the central government provide the funds necessary for the formation of a foreign investment zone prescribed by the provisions of Article 18, for a loan for the purchase of land to be rented to a foreign-capital invested company, for the reduction or exemption of the rental fee of the land or the reduction of lot prices (including where a local government provides support in response to the request of a public agency prescribed by the Presidential Decree that rents land to a foreign-capital invested company with a reduced or exempted rental fee or sells the land in lots for a price lower than the land formation fee, corresponding to the amount of the reduced or exempted rental fee or to the difference between the land formation fee and the price of the land divided into lots), for the payment of various kinds of subsidies such as education and training subsidies, and for foreign-investment inducement projects, the central government shall provide funds to the extent possible. (2) The criteria and procedures followed by the central government when providing funds to a local government in accordance with the provisions of paragraph (1) shall be determined by the foreign investment commission prescribed by the provisions of Article 27 under the conditions prescribed by the Presidential Decree. For the determination of the criteria for the providing of funds in this case, the degree of effort made by a local government to encourage and induce foreign investment and the actual results thereof shall be taken into consideration. (3) Each year the central government shall estimate the amount of the funds to be provided in accordance with the provisions of paragraph (1) and appropriate the estimated amount in its budget. (4) Where necessary for the purpose of promoting the inducement of foreign investment, a local government may pay a foreign-capital invested company an employment subsidy determined by the Presidential Decree under the conditions prescribed by its municipal ordinances.

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