Operational Standards for Company-Affiliated Research Institutes Overhauled: Greater Flexibility in Research Space and Personnel, Stronger Oversight

Movable Partitions Allowed,
Master’s Degree Researchers Recognized,
On-Site Inspections Introduced...
New Law Takes Effect from February 1

The standards for research space, personnel, and organizational operations of company-affiliated research institutes and dedicated research and development departments will be significantly revised. The scope of recognized research space will be expanded, and the utilization of research personnel will become more flexible. On the other hand, on-site inspections and procedures for revoking recognition will become much stricter in order to identify underperforming research institutes.

The Ministry of Science and ICT announced that, with the enforcement of the “Act on the Support of Research and Development of Company-Affiliated Research Institutes, etc.” and its enforcement decree and rules starting from February 1, the operational standards for the recognition system of company-affiliated research institutes have been comprehensively overhauled.

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This institutional reform focuses on improving the corporate research and development environment with greater flexibility, while also strengthening the management system to enhance the fairness and reliability of the system.

First, research space is required to be independent in principle. However, if installing fixed partitions is difficult, spaces divided by movable partitions will also be recognized as research space. Master's degree students participating in national research and development projects can be recognized as dedicated research staff if they meet the necessary requirements, allowing companies to utilize a broader pool of talented researchers. In addition, it will now be possible to establish and operate multiple secondary locations, whereas previously only one was allowed, thereby easing the burden of preparing and operating research and development facilities.

The grace period for supplementary measures will also be extended if recognition standards are not met. Previously, recognition could be revoked if supplementary measures were not completed within one month after a corrective order. Going forward, at the company's request, the grace period can be extended up to two months. Only research management staff among research institute employees will be permitted to concurrently handle other work, increasing flexibility in personnel management.

By contrast, oversight and supervision will be strengthened. Research institutes subject to administrative cancellation will no longer be able to substitute this with voluntary cancellation. The Minister of Science and ICT will be authorized to conduct on-site inspections to verify whether recognition standards are being maintained. Failure to cooperate with investigations without justifiable reason will constitute grounds for revocation of recognition.