How to Apply for the Electric Power Industry Infrastructure Fund Levy Exemption — 7-Year Exemption for Manufacturing Startups and the 5-Year Refund Limitation

Procedure

1. 1. Check whether you qualify for the exemption

   The enterprise must have been founded as a small or medium enterprise to engage in manufacturing under the Korean Standard Industrial Classification, and 7 years must not have passed since it commenced business. The business commencement date is the date of incorporation registration for a corporation and the business opening date on the business registration certificate for a sole proprietor. Taking over the same type of business by inheritance or gift, restarting the same type of business within 1 year after closing, or merely changing the company form is not treated as a startup.

2. 2. Prepare the startup confirmation documents

   The exemption application must be accompanied by the documents certifying startup status under Article 39 of the Support for Small and Medium Enterprise Establishment Act. If you do not yet have a startup enterprise confirmation, obtain it first, and prepare the value-added tax returns for the previous 3 business years (sole proprietors) or the statements of adjusted revenue for the previous 3 business years (corporations).

3. 3. File the exemption application with the city, county or district office

   Submit the levy exemption application and attachments to the mayor, county head or district head having jurisdiction over the principal office. The official checks the corporate register and the certificate of business registration through shared administrative information, and if you do not consent to that check for the business registration certificate, you attach it yourself.

4. 4. Exemption notice and confirming the levy is removed

   If the enterprise qualifies, the city, county or district office notifies the applicant and the levy-imposing agency within 14 days of receiving the application, in a document stating the business commencement date and the exemption period. After the notice, check that the levy no longer appears on the electricity bill, and for levies already paid during the exemption period, reconcile the amounts with the billing records and claim a refund.

5. 5. Manage the exemption period and the expiry of the provision

   The exemption runs until 7 years after the business commencement date, and the levy exemption provision for manufacturing startups itself remains in force until August 2, 2027. A refund claim is a monetary claim against the State and expires by limitation if not exercised for 5 years, so deal with the oldest payments first.

Required documents

• Levy exemption application (Enforcement Rule of the Support for Small and Medium Enterprise Establishment Act, Annex Form No. 1)
• Documents certifying startup status (startup enterprise confirmation)
• Value-added tax returns for the previous 3 business years (sole proprietors)
• Statements of adjusted revenue for the previous 3 business years (corporations)
• Certificate of business registration (if you do not consent to the shared administrative information check)
• Materials showing that the enterprise engages in manufacturing (if requested by the city, county or district office)
• Electricity bills and payment records (to confirm refund amounts)
• Letter of authorization (when filed by a representative)

Fees

In the industry, fees generally range from several hundred thousand won to several million won, depending on whether a startup enterprise confirmation must also be obtained, the refund period, and the number of business sites; we will advise after consultation. Government fees are separate.

See fees and official charges for this service →

Legal basis and review date

• Support for Small and Medium Enterprise Establishment Act, Article 2
• Support for Small and Medium Enterprise Establishment Act, Article 23
• Support for Small and Medium Enterprise Establishment Act, Article 39
• Support for Small and Medium Enterprise Establishment Act, Addenda (Act No. 19020), Articles 2 and 3
• Enforcement Decree of the Support for Small and Medium Enterprise Establishment Act, Article 2
• Enforcement Decree of the Support for Small and Medium Enterprise Establishment Act, Article 3
• Enforcement Decree of the Support for Small and Medium Enterprise Establishment Act, Article 10
• Enforcement Rule of the Support for Small and Medium Enterprise Establishment Act, Article 2
• Electricity Business Act, Article 48
• Electricity Business Act, Article 51
• Enforcement Decree of the Electricity Business Act, Article 36
• National Finance Act, Article 96

Checked against the statutes on 2026-10-06

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

• The levy exemption provision for manufacturing startups remains in force until August 2, 2027, so do not delay the application even if exemption years remain.
• A refund claim for levies already paid expires by limitation after 5 years, so check the payments made right after the business started first.

Frequently asked questions