Ryu Gwangjun, head of the Office of Science and Technology Innovation at the Ministry of Science and ICT, leads the '7th State R&D Business Evaluation Committee of 2024' held on Aug. 26, where the preliminary feasibility study exemptions for six government R&D projects are confirmed. /Courtesy of Ministry of Science and ICT

From the new year, the requirement for dedicated research manpower for the application of R&D tax credit will be relaxed, and the scope of eligible expenses will be expanded.

According to 'Changes from 2025' published by the government on the 31st, previously, for personnel jointly performing national strategic technologies, new growth source technologies, and general R&D, the income tax credit was applied reflecting general R&D.

From the new year, it will be possible to claim income tax credits for the duration spent on national strategic technologies or new growth source technologies, based on the allocated time spent on each R&D.

Previously, R&D facility rental fees were only applied to general research and development, but from the new year, they can also be applied to national strategic technology or new growth source technology R&D. This is expected to alleviate the R&D expense burden for corporations.

A phased structure will be introduced for R&D tax credits and investment tax credits. This is a measure to reduce the rate decrease of tax credits due to the growth of small and medium-sized enterprises. Observers note that by reducing the rate decrease of tax credits due to corporate growth, it is expected to prevent 'Peter Pan syndrome,' where corporations avoid growth.