Support of 10 Billion KRW for 190 Company-Affiliated Research Institutes Facing 'Employment Crisis'

Ministry of Science and ICT Completes Selection of Support Project Recipients

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[Asia Economy Reporter Kim Bong-su] The government will provide a budget of approximately 10 billion KRW to 190 small and medium-sized enterprise-affiliated research institutes facing a crisis of research activity contraction and workforce outflow due to the prolonged COVID-19 pandemic, on the condition of maintaining employment.

The Ministry of Science and ICT announced that it has selected 190 SMEs as new support targets this year as part of the 2021 ‘Employment Crisis SME-Affiliated Research Institute R&D Specialized Personnel Utilization Support Project.’

The Ministry of Science and ICT has been promoting this project since last year to minimize the contraction of corporate R&D activities and the outflow of core research personnel caused by the prolonged COVID-19 pandemic, aiming to protect current jobs and secure future growth engines.

In fact, according to a survey by the Korea Industrial Technology Association last year, economic activity contraction and recession due to the COVID-19 crisis have led to a contraction in R&D activities and employment in SMEs. The percentage of companies planning to reduce R&D investment was 48.2% in March, increasing to 58.5% in May and 59.0% in September. Plans to reduce researcher recruitment also showed a slight increase from 41.6% in March to 51.6% in May and 42.2% in September. Regarding government R&D measures responding to COVID-19, 77.2% of SMEs answered that support for maintaining research personnel employment is necessary.

The target is SMEs that find it difficult to maintain R&D activities due to COVID-19. If selected, basic research projects (50 million KRW per project annually) will be supported to maintain R&D investment and core research personnel employment. Companies can apply with research topics they need (open call), and upon selection, private contributions (100% government support) and technology fees are waived. Labor costs for existing personnel to maintain R&D activities are also included. Participating companies must maintain employment of participating personnel during the project period.

The government conducted the first support project after the passage of the third supplementary budget in July last year, and this year, after receiving applications from 1,292 companies through a call in January and conducting evaluations, 190 companies were finally selected as support targets.

Among them, 50% are companies located in provincial areas, and by sector, mechanical and materials companies accounted for the largest share with 48 companies (25.3%), followed by electrical and electronics with 47 companies (24.7%), information and communication with 37 companies (19.5%), bio-medical with 28 companies (14.7%), knowledge services with 15 companies (7.9%), chemical with 11 companies (5.8%), and energy and resources with 4 companies (2.1%).

Kwon Seok-min, Director of Science and Technology Job Innovation at the Ministry of Science and ICT, said, “Through this project, conducted as part of the Korean New Deal, we will actively support the R&D activities and employment maintenance of selected companies to establish a nationwide employment safety net.” He added, “We will create an environment where companies can overcome the COVID-19 crisis and focus on R&D activities, and furthermore, lay the foundation to leap into a leading economy (Digital New Deal) and a low-carbon economy (Green New Deal).”

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