Significantly Reducing 'Private Sector Burden' on Technology Commercialization for Small and Medium Enterprises

[Asia Economy Reporter Junho Hwang] To mitigate the economic impact caused by the novel coronavirus infection (COVID-19), government support for small and medium-sized enterprises (SMEs) commercializing research outcomes from public institutions will be strengthened. The government will support business activities by reducing the private burden and technology fees for companies participating in related projects and expanding the scope of recognized labor costs.

The Ministry of Science and ICT announced on the 25th that it will promote such "field-experienced proactive administration." This measure supports companies carrying out technology commercialization projects (R&BD, 62.2 billion KRW) in research and development special zones affected by COVID-19.

First, the government lowered the private burden rate for SMEs participating in technology commercialization projects from 25% to 20%. The cash burden ratio within this was also reduced from 10% to 5%.

The scope of recognized labor cost expenditures from government subsidies, which previously included only newly hired personnel, has been expanded to include existing employees. The government expects this to ease the employment burden by 42.5 million KRW per company (for SMEs).

This year, the obligation to pay technology fees for R&BD projects in research and development special zones will also be temporarily exempted. A cost reduction of 17 million KRW per company is anticipated.

Jeong Byeong-seon, 1st Vice Minister of the Ministry of Science and ICT, said, "Through the government's proactive administration, a total of 22.1 billion KRW in direct and indirect financial support effects are expected from the technology commercialization projects in research and development special zones," adding, "We will continue to improve government support measures to ensure that R&D, the future growth engine, is not weakened."

Detailed information about this project can be found on the Ministry of Science and ICT or Research and Development Special Zone Promotion Foundation websites.

This content was produced with the assistance of AI translation services.