Employment threshold for companies relocating to Jeju lowered from 20 to 10... Logistics costs up to 500 million won over 5 years

[Financial News Jeju = Reporter Jeong Yong-bok] Jeju will lower the employment threshold for corporate relocation support by half and expand logistics cost support from the current maximum of 200 million won over two years to a maximum of 500 million won over five years. Companies meeting certain requirements will be eligible for support regardless of region, including the Seoul metropolitan area, and the scope of support will be expanded to include location and facility investment, securing specialized personnel, and the settlement of relocated employees.
According to Jeju Special Self-Governing Province on the 6th, the province is pushing for an amendment to the 'Jeju Special Self-Governing Province Ordinance on Business Attraction Promotion and Investment Support' containing these details. The goal is to implement it in January 2027 following deliberation by the Jeju Special Self-Governing Provincial Council and review under the ordinance and rules.
The biggest change is the permanent employment standard. Currently, companies relocating to Jeju must have at least 20 permanent employees to receive support, but the amendment lowers this to 10 or more. For regionally specialized industries and new growth engine industries, the requirement is relaxed from the current 10 or more to 5 or more.
It was determined that in regions with small labor markets like Jeju, the requirement to hire at least 20 people from the start could act as a burden on small and technology companies' decisions to relocate.
Instead, a requirement for an investment of 500 million won or more will be newly established. This structure requires a certain level of investment to ensure that the relaxation of employment standards does not lead to indiscriminate support for small businesses.
The classification based on company location will also be revised. The scope of support will be expanded to include companies in the Seoul metropolitan area, which previously had difficulty receiving assistance, by designating any company that meets certain criteria as a "company relocated within the province" regardless of region.
Support for initial investment costs will also be strengthened. The ratio for location subsidies will be increased by 5 percentage points, from the current 25% to 30%, and for facility investment subsidies from 10% to 15%. An additional 5% will be provided to regionally specialized industries, and 10% to companies located in Opportunity Development Zones. This approach provides relatively greater benefits to industries that Jeju is strategically seeking to attract and to companies located in special zones.
Support will also be provided for the costs of hiring and settling people in Jeju. The criteria for new employment subsidies will be lowered from hiring more than 10 new employees to more than 5, and the support limit per company will be expanded to a maximum of 300 million won.
The support amount for R&D professionals will be increased from 2 million won to 3 million won per person per month. The plan also includes additional benefits for companies that newly hire Jeju residents.
A settlement subsidy will also be newly established for employees relocating to Jeju with their companies. By supporting workers who move to Jeju and reside there continuously for a certain period, it helps companies retain key personnel.
Support for logistics costs, which is directly linked to the cost burden of companies in island regions, will be expanded in both duration and limit. Currently, up to 200 million won is provided for two years from the start of business when finished products produced in Jeju are shipped out of the province or raw materials are brought in.
Once the amendment goes into effect, the support period will be extended to five years, and companies can receive up to 100 million won annually, for a total of up to 500 million won per company. This effectively extends the logistics cost support period by three years, from two to five years, and increases the total support limit 2.5 times, from 200 million won to 500 million won.
The demands of companies that have already relocated to Jeju were also reflected in this system reform. On August 28, Jeju Special Self-Governing Province held a meeting with relocated companies to hear their opinions on securing R&D specialists, employee settlement, and the burden of logistics costs. The companies suggested that follow-up support is necessary for those that continue additional investment and new hiring even after a certain period has passed since moving to Jeju.
Accordingly, Jeju Special Self-Governing Province plans to establish a system to support not only newly relocated companies but also initial settlement companies, growth and expansion companies, and long-term settlement companies according to their growth stages.
As the eligibility threshold and subsidy scale are changing simultaneously, actual performance must be verified through investment and employment rather than the number of companies. The indicators that will determine the effectiveness of the policy are how many new companies become eligible for support after the permanent employment criteria are halved, and how much the supported companies invest in Jeju and hire local residents and talent.
Kang Ae-sook, Director of the Economic Vitality Bureau of Jeju Special Self-Governing Province, stated, "We will provide support tailored to the growth stages and on-site conditions so that companies can invest in Jeju and settle stably," adding, "We will continuously communicate with relocated companies and improve support systems needed on the ground."


[email protected] Jeong Yong-bok Reporter