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R&D

Human Resource
Development Program
Our Vision & Mandate

Invest KOREA is the Korean national investment promotion


agency (IPA), established with the sole purpose of facilitating the entry
and successful establishment of foreign business into Korea. Nor does
our involvement halt there, since our agency delivers an extensive
post-establishment service designed to promote the rapid settlement
of foreign corporates in Korea and ensure they maximize the benefits
of the Korean investment environment to the fullest extent.

The scope of our activities on behalf of foreign business ranges


from business consultation, market research and partner searches to
accessing grants, administrative processing and resolving difficulties
with government and mediating in labor disputes.
Invest KOREA is dedicating to providing the kind of comprehensive,
seamless, one-stop service that allows foreign investors to put roots in
Korea and join the thousands of others who are operating successfully
and profitably here.

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R&D Human Resource Development Program

The R&D Human Resource Development Program was recently


introduced by Ministry of Commerce, Industry and Energy to cultivate
R&D talents nationwide by providing financial support to R&D centers
(or host companies). Newly established R&D centers or existing R&D
centers in Korea can take advantage of the program specifically for
newly-employed R&D personnel and training personnel dispatched
from abroad.

Qualifications for R&D centers


(or host companies)

• State-of-the-art R&D capacity


• Global marketing and distribution network
• Advanced in-house R&D training program

R&D centers (or host companies) who meet the three basic
qualifications described above are welcome to apply for the program.
Evaluation committees will take into consideration the technical and
economical benefits of the applicants’ R&D activities to the Korean
market, as proposed in the application documents.

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Specifics of Financial Support

• R&D personnel

New employment
R&D centers (or host companies) can receive matching grants for
newly-employed R&D personnel. The period of the employment
contract should be two years or longer and the grant covers up to
80% of annual salary within 30 million Korean Won (approx.
US$28,000) for the first two years.

Renewed employment
R&D centers (or host companies) can hire persons described above
as long-term employees and receive matching grants. The period of
the employment contract should be three years or longer and the
grant covers up to 50% of annual salary within 30 million Korean
Won (approx. US$28,000) for the first three years.

• Training personnel

Temporary stationing
R&D centers (or host companies) can transfer training personnel
from abroad. Training personnel should participate in in-house
training programs and the grant covers up to 50% of accommodation
expenditure within 50 million Korean Won (approx. US$47,000)

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Procedure

• Application

Period
• 1st round: October 15-November 30, 2004(End)
• 2nd round: April 15 - May 31, 2005
• 3rd round: October 15-November 30, 2005
• 4th round: April 15 - May 31, 2006

Application documents
• Application form
(Download it from www.kotra.or.kr or www.investkorea.org)
• Research & Development Plan
* Application documents should be in Korean

• Evaluation

Technology evaluation
Business evaluation
* Evaluated by the external evaluation institution

• Selection

Period
• 1st round: during December 2004(End)
• 2nd round: during July 2005
• 3rd round: during December 2005
• 4th round: during July 2006

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Global Leaders Choose Korea as a R&D Hub

• Intel
Digital Home Networking & Mobile Communications R&D Center
Craig Barrett, “Korea is well equipped with its IT infrastructure in
such areas as mobile communications and home networking.
Moreover, highly-educated human resources in engineering makes
Korea a prime site for R&D center.”

• Microsoft
Mobile Innovation Laboratory
World’s first mobile laboratory of Microsoft
Pieter Knook, “Korea is global leader in mobile market. MS feels
certain that MS’s investment in Korea will suitably harmonize with
growing mobile market of Korea resulting win-win model.”

• Sybase
Mobile Business Intelligence Solution Center
John Chen, CEO, “Not only Korea is the world leader of BT solution
in Asia-pacific region, but Korea also has great potentials to utilize
BI products with strong technology and business power . As world
leader of mobile market, Korea has the most suitable conditions to
construct mobile BT center.”

• Agilent
Mobile Design Center
Bill Sullivan, “ Korea is innovative country taking in new
technologies very quickly. Korea is world’s IT leader especially in
wireless communications. ”

• IBM
Ubiquitous Computing Laboratory
“IBM is planning to concentrate on research and development of
telematics and embedded software.”

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• HP
Korea Development Center: Ubiquitous Mobility & RFID
Infrastructure
Ha, Seok Ku, “Korea is leader in various fields of IT market and with
its excellent internet infrastructure, Korea has the most suitable
conditions to build R&D center.”

• SIEMENS
Medical Research & Development Center
Hermann Requardt, “New innovative product will be developed by
combining our technology and brain of Korea.”
Josef Winter “Korea has excellent universities and outstanding
research human resources from those universities. R&D especially
needs passion and I believe Koreans are the best in this respect.”

• Spansion
System Engineering Center
“Samsung is Korean company which is #1 in memory semiconductor
market. Moreover, mobile market is growing rapidly in Korea.
Therefore, R&D center in Korea is strategically essential to
strengthen Spansion’s capacity.”
Bertrand Cambou, “Korea is the best market for designing and
testing flash memory products and has excellent engineering human
resources related to mobile phones.”

• Freescale
Automotive Semiconductor R&D Center
Michel Mayer, “ Freescale is planning to develop telematics products
by establishing automotive semiconductor R&D center in Korea.
Moreover, Freescale will also strengthen telematics section where
Korea is in the center of fast growing market.”

• ATI
Graphic Chipset Development Center
“R&D center in Korea will lead ATI’s core technology for mobile
phones, especially graphic chip development for game phones.”

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Global IT R&D Centers in Korea

Driving Tomorrow's Technology

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R&D Centers by Industry

• Total number of R&D centers in private sector recorded


10,000 in Sept. 2004

• Electronics & IT sector has shown strong position since


the end of 1990s when technology-innovative business
have exploded

• Foreign R&D Center Presence


- 901 (9.0%) Corporate R&D Centers established by Foreign Investors

Distribution of R&D Centers by Industry

170,2% 125,1%
(Unit, %)
667,7% 315,3%
Eiectronics & IT
1592,16%
Machinery

Chemical/BT

Construction/ET

Food

1612,16% Textile

5519,55% Others

Source : Ministry of Science & Technology

Composition of Corporate with 100% Foreign


Investment Equity Ratio
USA, 53

(Country, Unit)
Others, 38

USA
Netherlands, 8
Germany
Japan, 17
Japan

Netherlands

Others

Germany, 19

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Who & What We Are
Invest KOREA is the new name of the Korea Investment Service Center
(Invest KOREA), which was established in 1998 as part of a radical liberalization of the
Korea investment regime under the Foreign Investment Promotion Act of the same
year. Major recent revisions to the Act empower Invest KOREA to act as far a more
efficient, practical and integrated investor service.

Who Makes Our Agency Work


Invest KOREA is staffed with KOTRA employees who have extensive expertise
and experience in supporting inbound foreign direct investment (FDI), public servants
from other related government agencies, and experts from the private sector in fields
such as accounting, law (including tax and labor law), as well as mergers and
acquisitions (M&A). Invest KOREA personnel have become progressively more
specialized to meet the increasingly more particular needs of our clients. Accordingly,
the agency’s staff will be bolstered by specialists from specific industrial sectors to
provide faster and accurate investment-related services to foreign investors as
determined by need.

Where We Are
From our head office in Seoul, Invest KOREA operates a network of 36
overseas branch offices located across five continents in the major financial and
decision-making centers of the world. Truly, we may say we are on the doorstep of the
globe’s major investors wherever they might be to act as their proxies in locating in
Korea offer a superlative service to ensure that their investment plans are executed to
the letter without hindrance or delay.

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KOTRA global network is at your service

• HEAD OFFICE • EUROPE • ASIA & OCEANIA

Seoul, KOREA Frankfurt, GERMANY Singapore


300-9, Yomgok-dong, Seocho-gu, TEL: (49-69) 242-9920 TEL: (65) 6221-3055
Seoul, Korea FAX: (49-69) 25-3589 FAX: (65) 6223-5850
TEL: (82-2) 3460-7543/7545 E-mail: frankfurt@kotra.or.kr E-mail: kortrade@singnet.com.sg
FAX: (82-2) 3460-7946/7
www.investkorea.org Berlin, GERMANY Sydney, AUSTRALIA
E-mail: ikmaster@kotra.or.kr TEL: (49-30) 2096-2637 TEL: (61-2) 9299-1790
FAX: (49-30) 2096-2635 FAX: (61-2) 9299-1792
• NORTH AMERICA E-mail: kotra-berlin@t-online.de E-mail: info@kotra.org.au

New York, U.S.A Hamburg, GERMANY Melbourne, AUSTRALIA


TEL: (1-212) 826-0900 TEL: (49-40) 23-2235/2638 TEL: (61-3) 9699-3833
FAX: (1-212) 888-4930 FAX: (49-40) 23-3998 FAX: (61-3) 9699-3811
E-mail: kotrany@ix.netcom.com E-mail: kotraham@t-online.de E-mail: ktcmel@bigpond.net.au

Los Angeles, U.S.A Munich, GERMANY • JAPAN


TEL: (1-323) 954-9500 TEL: (49-89) 2424-2630
FAX: (1-323) 954-1707 FAX: (49-89) 2424-2639 Tokyo
E-mail: laktc@yahoo.com E-mail: munich@kotra.or.kr TEL: (81-3) 3214-6951
FAX: (81-3) 3214-6950
Chicago, U.S.A Paris, FRANCE E-mail: kotratky@kotra.or.jp
TEL: (1-312) 644-4323 TEL: (33-1) 42-25-09-57
FAX: (1-312) 644-4879 FAX: (33-1) 42-25-09-50 Osaka
E-mail: info@kotrachicago.com E-mail: info@kotraparis.com TEL: (81-6) 6262-3831
FAX: (81-6) 6262-4607
Dallas, U.S.A London, U.K. E-mail: osaktc@kotra.or.jp
TEL: (1-972) 243-9300 TEL: (44-20) 7491-8057
FAX: (1-972) 243-9301 FAX: (44-20) 7491-7913 Nagoya
E-mail: ktcdfw@swbell.net E-mail: kotra@kotra.co.uk TEL: (81-52) 561-3936
FAX: (81-52) 561-3945
Washington D.C., U.S.A Brussels, BELGIUM E-mail: nagoya@kotra.or.jp
TEL: (1-202) 857-7919 TEL: (32-2) 203-2142
FAX: (1-202) 857-7923 FAX: (32-2) 203-0751 Fukuoka
E-mail: main@kotradc.com E-mail: kotrabru@skynet.be TEL: (81-92) 473-2005
FAX: (81-92) 473-2007
San Francisco, U.S.A Milano, ITALY E-mail: kotrafuk@lime.ocn.ne.jp
TEL: (1-650) 571-8483 TEL: (39-02) 795147, 795813, 796384
FAX: (1-650) 571-8065 FAX: (39-02) 798235 • CHINA
E-mail: info@kotrasf.org E-mail: kotramil@kotra.it
Shanghai
Atlanta, U.S.A Zurich, SWITZERLAND TEL: (86-21) 6219-7592
TEL: (1-770) 508-0808 TEL: (41-1) 202-1232 FAX: (86-21) 6219-6015
FAX: (1-770) 508-0801 FAX: (41-1) 202-4318 E-mail: shanghai@kotra.or.kr
E-mail: information@kotraatl.com E-mail: ktc@kotra.ch
Hong Kong
Miami, U.S.A Stockholm, SWEDEN TEL: (85-2) 2545-9500
TEL: (1-305) 374-4648 TEL: (46-8) 30-80-90 FAX: (85-2) 2815-0487
FAX: (1-305) 375-9332 FAX: (46-8) 30-61-90 E-mail: kotrahk@netvigator.com
E-mail: ktcmiami@aol.com E-mail: kotra.st o@kotra.nu
Taipei, TAIWAN
Detroit, U.S.A Copenhagen, DENMARK TEL: (886-2) 2725-2324
TEL: (1-248) 355-4911 TEL: (45) 3312-6658 FAX: (886-2) 2757-7240
FAX: (1-248) 355-9002 FAX: (45) 3332-6654 E-mail: kotra.tpe@msa.hinet net
E-mail: detroit@kotradtt.org E-mail: info@kotra.dk

Toronto, CANADA Amsterdam, NETHERLANDS


TEL: (1-416) 368-3399 TEL: (31-20) 673-0555
FAX: (1-416) 368-2893 FAX: (31-20) 673-6918
E-mail: info@kotra.ca E-mail: info@koreatradecenter.nl

Vancouver, CANADA Vienna, AUSTRIA


TEL: (1-604) 683-1820 TEL: (43-1) 586-3876
FAX: (1-604) 687-6249 FAX: (43-1) 586-3979
E-mail: ktc@kotrayvr.com E-mail: kotravie@kotra.at

E
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www.investkorea.org

The investment promotion arm of KOTRA