"Support for Specialized Research Personnel and Expansion of Tax Credits for Mid-sized Companies"

"Many Job Changes After Military Service Completion Cause Difficulties
Request to Expand Tax Credit for Mid-sized Companies by Over 8%"
Kim Young-sik Submits Bill to Establish Technology Development Day

[Asia Economy Reporter Hyunju Lee] On the 26th, the People Power Party held a council with the government, private organizations, and companies to discuss measures such as tax system reductions and support for professional researchers after completing their military service, aiming to expand research and development (R&D) in the industrial sector.

Seong Il-jong, the Policy Committee Chairman of the People Power Party, said at a meeting with reporters after the council, "The lights in corporate research centers must not go out. This is important for Korea to have hope as a nation and to become a top-tier country," and he offered words of encouragement.

Through the council, Chairman Seong requested the Ministry of Economy and Finance to consider increasing the current 8% tax credit on R&D investments for mid-sized companies. He said, "Compared to advanced countries, small and medium-sized enterprises receive a 25% tax reduction, and for the increased amount, up to 50%, but mid-sized companies only get 8%, which is challenging," adding, "The Ministry of Economy and Finance responded that this is not a small amount compared to foreign countries, and if necessary, additional review was requested."

[Image source=Yonhap News]

He also pointed out the issue that professional researchers face manpower shortages as they change jobs after completing their military service, and requested the Ministry of Employment and Labor to review possible support measures. Chairman Seong said, "The government will prepare institutional measures and hold discussions with the participating businesspeople," adding, "I believe this system is worth researching in depth."

He further stated that active support will be provided to practically use budgets necessary for retraining new employees outside of university education to nurture research personnel in mid-sized companies.

Chairman Seong said, "I was thinking about practical ways to boost the morale of corporate researchers, and Representative Kim Young-sik will submit a bill to establish a Technology Development Day," adding, "A commemorative day will be designated and awards will be given to support keeping the lights on in Korea’s research centers."