[H2 ECONOMIC POLICY] Robotics, advanced auto technologies to receive tax, financial support

[THE INVESTOR] Robotics, advanced automotive technologies and nine other fields were selected as the “new industries” that will receive government support on June 28.

Other selected fields include advanced IT, software and security, next generation telecom and broadcasting technologies, aerospace technologies, bio- and health-technologies, advanced electronic devices, energy- and environment technologies, and new materials.

Benefits include tax breaks for research and development spending and facilities investment. For SMEs, up to 30 percent of R&D spending will be exempt from taxation while 10 percent of facilities investments will not be taxed.

For larger companies, 20 percent of R&D spending and 7 percent of facilities spending will be exempted from taxes.

To raise financial support, the government will review major state-funded R&D projects to cut related spending by 15 percent, and direct the saved funds to the 11 selected fields.

By Choi He-suk (cheesuk@heraldcorp.com)