Seoul to extend tax incentives to boost R&D investment

The government said on Wednesday it will push to extend tax breaks and incentives to spur corporate investment in research and development through 2015.

Tax credits worth 2.3 trillion won ($1.96 billion) last year for R&D investment to develop new growth engines and core technologies, special exceptions in taxation (worth 92.1 billion won) for state endowments related to R&D and tax credits (106 billion won) for investment in R&D facilities are set to expire this year.

The government said it will take steps to extend them and the term for tax deduction of the costs for technological transfers or acquisitions following a meeting of policymakers including Finance Minister Bahk Jae-wan.

The policymakers agreed on 25 measures to help solve companies’ predicaments during the crisis management meeting.

They include recognizing graduates of state-funded vocational high schools as R&D staff for corporate research institutes so they can receive tax incentives and personnel expenses from the government.

As part of efforts to support small- and medium-sized companies, the government lifted the ban on daily purchases of more than 50 bottles of traditional Korean liquor per adult on the Internet.

The restriction aimed at preventing excessive drinking and protecting teenagers had kept companies from making bulk purchases of traditional liquor for gifts during holiday seasons. The government is considering allowing purchases of up to 100 bottles a day per person through the Internet.

In a bid to promote the local livestock industry and raise incomes of pig breeding farms, it will be mandatory to mark places of origins for processed pork for delivery.

National and public universities, which have been denied access to commercial cloud computing services for security reasons, will be allowed to use cloud services through non-administrative computers that do not store student information.

People who wish to temporarily or permanently shut down their restaurants or shops will be able to do so by simply reporting to either the tax office or the local government, instead of filing reports to both.

By Kim So-hyun  (sophie@heraldcorp.com)