Foreign investment law goes into effect today

The foreign investment promotion law takes effect today, encouraging large foreign businesses to sign free contracts on the use of state-owned land without other conditions to build their facilities.

According to the Ministry of Trade, Industry and Energy yesterday, foreign manufacturing companies with over 300 employees and financial companies with over 200 employees are eligible for the free contracts.

Education companies also will be eligible if they hire more than 100 workers in the country.

Telecommunications companies that invest more than $30 million and tourism businesses that put more than $20 million into the country also will be able to access the free contracts.

Those that plan to invest in less-developed areas of the country will enjoy the benefit, too.

Previously, only companies that invested more than 100 million won ($88,100) and whose proportion of foreign capital exceeded 10 percent for five years, could sign such contracts.

With the new law, foreign companies have to notify the authority of how many employees they plan to hire.