Lead Proposal of the Local University R&D Capability Enhancement Act
Package Bills: Amendments to the Local University Promotion Act and the Restriction of Special Taxation Act
Explicit Support for Companies Collaborating with Local Universities in R&D, Additional Tax Deductions Provided
Goo Ja-geun, Member of the National Assembly for Gumi City Gap in North Gyeongsang Province (People Power Party), announced on the 28th that he had submitted a package of two bills: an amendment to the Restriction of Special Taxation Act, which would allow an additional tax deduction equivalent to 10 percent of the cost when outsourcing research and development projects to local universities or conducting joint R&D with them; and an amendment to the Local University Promotion Act, which explicitly stipulates support for companies participating in R&D cooperation with local universities.
Under the current Restriction of Special Taxation Act, a certain percentage of expenses can be deducted when universities are commissioned for research or when joint R&D is conducted for specific technologies. However, there are no separate preferential provisions for non-metropolitan regions.
Gujageun, Member of the National Assembly for Gumi City Gap, North Gyeongsang Province (People Power Party) / Photo by Kim Ihwan
The gap in research and development capabilities between universities in the Seoul metropolitan area and those in other regions continues to widen. This is evident in the disparity in technology transfer income, a key indicator of R&D performance.
According to the "University Information Disclosure Analysis Results" released by the Ministry of Education in June 2025, technology transfer income for universities in the Seoul metropolitan area increased by 32.9 percent, from 57.24 billion won in 2023 to 76.08 billion won in 2024. However, technology transfer income for universities outside the metropolitan area decreased from 42.95 billion won to 42.55 billion won during the same period.
This suggests that research outcomes from local universities are not being linked to industry, indicating a need for measures to expand R&D opportunities and enhance R&D capabilities at local universities.
According to the "R&D Activity Survey Report" published by the Ministry of Science and ICT and the Korea Institute of S&T Evaluation and Planning (KISTEP), the share of national R&D expenditures concentrated in the Seoul metropolitan area over the past five years has been ▲69.88% in 2019 ▲69.21% in 2020 ▲69.90% in 2021 ▲70.13% in 2022 ▲70.18% in 2023, demonstrating a heavy concentration of R&D activity in the metropolitan area.
To address this gap in R&D infrastructure between the metropolitan area and other regions, there is a growing consensus on the need for measures such as promoting collaborative R&D activities between local universities and companies.
In response, Assemblyman Goo Ja-geun established a provision allowing an additional 10 percent tax deduction for outsourcing research projects or conducting joint R&D with local universities, in order to promote R&D collaboration with universities in non-metropolitan areas.
The amendment to the Local University Promotion Act specifies government responsibilities and roles by stipulating support for companies that actively participate in human and material cooperation with local universities in the field of R&D.
Assemblyman Goo Ja-geun stated, "To strengthen the regional industrial ecosystem, it is necessary to enhance the R&D capabilities of local universities so they can serve as innovation hubs," adding, "I hope these policies will strengthen the technological and talent base of local universities and support the growth of specialized industries."
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