R&D Project Submission Delayed by 2 Weeks to "Minimize COVID-19 Impact"

Industrial R&D COVID-19 Response Measures Established

Extension of Technology Fee Payment for Affected Companies and Relief of R&D Matching Burden

[Asia Economy Reporter Moon Chaeseok] The government announced measures to ease the research and development (R&D) project and financial burdens of companies struggling due to the spread of the novel coronavirus infection (COVID-19).

On the 1st, the Ministry of Trade, Industry and Energy announced measures such as reducing the private sector's share of R&D project costs for small and medium-sized enterprises (SMEs) from 33% to 20%.

First, for new projects scheduled to be supported in the first half of the year, the application period for projects with deadlines by the 20th will be extended by two weeks.

Industrial technology R&D announced in January and February is characterized by being medium- to long-term and large-scale. Due to the spread of COVID-19, researchers may face difficulties in project planning consultations because of movement restrictions and avoidance of face-to-face meetings.

During periods when the crisis alert level is at the 'serious' stage, the selection, stage, and final evaluation schedules will be temporarily postponed.

According to the Ministry of Trade, Industry and Energy, most R&D projects were scheduled for face-to-face presentation evaluations from this month through April, but these will be temporarily postponed.

To reduce the financial burden on companies, the revised regulations will be implemented immediately within this month.

The payment period for technology fees for companies affected by COVID-19 will be extended, and the private sector's share of R&D project costs will be reduced. For SMEs, the current 33% will be reduced to 20%.

For SMEs, part of the labor costs for R&D research personnel will also be allowed to be covered in cash.

Additionally, expenses such as cancellation fees for events and business trips, and costs for purchasing and using preventive items like masks and hand sanitizers will also be supported as R&D project expenses.

These measures have already been communicated to researchers through institutions such as the Korea Institute for Advancement of Technology, Korea Institute for Industrial Technology Promotion, and Korea Energy Technology Evaluation Institute.

The Ministry of Trade, Industry and Energy plans to closely monitor difficulties in R&D execution to minimize damage caused by the spread of COVID-19 and stated that additional measures will be prepared promptly if necessary.