In May 2020, the Serbian State Aid Control Commission (“SACC”) has cleared a state aid granted to the Serbian subsidiary of the Korean investor Kyungshin Cable Co. Ltd.. The granted aid concerns the allocation of 61,534 m2 of state-owned land for the investment in a new factory for the production of electrical and electronic equipment for cars. in the town of Smederevska Palanka located in central Serbia.
The state aid has been granted with the aim of supporting regional development, whereby the Serbian Government designated Kyungshin’s investment as a project of importance for the Republic of Serbia.
The estimated worth of land provided to Kyungshin amounts to EUR 254,350.79, while Kyungshin committed to investing at least EUR 20 million in new fixed assets by the end of 2022 (whereas at least a quarter of that money must come from the company’s funds, free of any state aid) and provide employment for 700 workers on an indefinite term. More precisely, the investment comprises the construction of an 11,000 square meters plant for the production of certain parts for electric vehicles as well as investment in new equipment.
In the assessment of the state aid, the SACC found that the amount of the aid is in accordance with the Regulation on the Rules for Granting of State Aid and the State Aid Law, whereby all conditions in terms of intensity, coverage of standardized costs, methods of monitoring the potential additional state aid have been met.
