Korea Bio Association "Actively Welcomes Addition of Bio to National Strategic Technologies"

The Korea Bio Association expressed its "full support" on the 7th for the amendment to the Restriction of Special Taxation Act, proposed by Representative Jeong Il-young and 10 others, which adds bio health to the national strategic technologies under the Act.

Under the existing Restriction of Special Taxation Act, national strategic technologies included semiconductors, secondary batteries, vaccines, and displays.

According to the association, countries such as the United States and China are already fostering the bio industry at the national level. In September last year, U.S. President Joe Biden signed an executive order to promote growth through bio technology and bio manufacturing innovation, providing full government support. China, earlier in May last year, established its first five-year bioeconomy plan to systematically support the entire bio industry.

The amendment to the Restriction of Special Taxation Act, led by Representative Jeong, includes upgrading bio and health technologies from new growth and source technologies to national strategic technologies. Accordingly, investments in assets related to national strategic technologies designated by presidential decree will be eligible for a tax credit of up to 8%.

The association explained that this expansion of tax credits is necessary for the bio industry. Buildings in the bio industry are designed as sterile facilities and used as research infrastructure but are currently considered general buildings and thus excluded from tax credit eligibility. Since significant investment is required to develop and produce bio products and it takes a long time to recover the actual investment costs, there is a need to expand the scope of the tax credit.

The Bio Association emphasized, "The importance of the bio industry in terms of health security and economic aspects has become more prominent through the experience of COVID-19," adding, "Competition between countries and companies is becoming fiercer." It further stated, "We actively welcome Representative Jeong Il-young’s amendment to the Restriction of Special Taxation Act to attract domestic investment by our bio companies and strengthen the industrial ecosystem," and expressed hope that "it will be promptly discussed and passed in the National Assembly."