This photo provided by Samsung Electro-Mechanics Co. on Aug. 5, 2021, shows a cleanroom at its plant in Busan.
SEOUL, Feb. 25 (Korea Bizwire) — The Ministry of Economy and Finance said Thursday that local companies investing in national strategic technologies directly connected with national economy and security will receive tax deduction up to 50 percent of their investments.
This year’s tax law revision cleared the way for businesses that make research and development (R&D) investments in the nation’s three strategic technology areas – semiconductors, batteries and vaccines – to receive tax deduction up to 50 percent of their investments (for SMEs)
For facility investments, including machinery equipment and production lines, businesses can receive tax deduction up to 20 percent of their investments (for SMEs).
Large businesses also can receive tax deduction of 30 to 40 percent of their R&D expenses and 10 percent of their facility investments.
Businesses that invest in new technology directly related to the growth of domestic industry can receive such benefits for up to 40 percent of their R&D expenses and 15 percent of facility investments.
The new technology includes carbon-neutral technology such as blue hydrogen and green hydrogen production, greenhouse gas reduction technology and core item-related technology, including urea water solution, which has a fragile supply base.
Ashley Song (ashley@koreabizwire.com)
