Minister Yoon Sang-jik promises R&D tax credit for SMEs

The Korean government will raise the R&D tax credit for SMEs, which currently holds at 30%, up to 50% to shoulder the burden of R&D expenditures on SMEs and will help enhance price competitiveness by lowering electricity surcharges that have been imposed on companies. Furthermore, the government has pledged all-out support for the creation of MRO (Maintenance, Repair and Operations) companies by SMEs.

In a meeting with the CEOs of Korean SMEs on Thursday, Yoon Sang-jik, Minister of industry, trade and resources said, “The government will expand tax deductions to promote SMEs’ R&D activities and will relax the electricity surcharge system next year. And I will consult with relevant ministries to push for tax credits for SMEs’ efforts to nurture R&D talent.”

The electricity surcharge system was introduced in 2011 to levy surcharges on companies’ electricity use during evening hours and winter time.

Minister Yoon also mentioned, “It has been rumored that large companies’ MROs are still trying to encroach on the SME realm. Thus, the Korean government will provide policy support for like-minded SMEs’ moves to jointly set up an MRO company.”

For full article, see Korea IT Times.