"Research is also an Industry"... Government Enacts Enforcement Decree to Ease Regulations on Establishment Requirements

On the 12th, the Cabinet Meeting Approved the Enforcement Decree of the 'Research Industry Promotion Act'

[Asia Economy Reporter Kim Bong-su] The government has significantly eased related regulations to revitalize research and development (R&D) and improve productivity.

On the 12th, the Ministry of Science and ICT announced that the draft enforcement decree of the 'Research Industry Promotion Act,' which includes detailed standards on the registration of specialized research operators and the performance evaluation of research equipment to promote the research industry, has passed the Cabinet meeting.

South Korea ranks fifth globally in R&D investment, with approximately 85.7 trillion KRW as of 2018. However, R&D productivity remains low among OECD countries.

The enactment of this enforcement decree follows the April passage of the 'Research Industry Promotion Act,' which clearly defines and supports the 'research industry' to strengthen R&D productivity.

Specifically, it stipulates delegated matters from the law, such as requirements and procedures for registering specialized research operators, evaluating research equipment performance, and designating research industry promotion complexes. To register as a specialized research operator, one must meet requirements such as specialized personnel, sales volume, and development and delivery performance detailed by industry in the enforcement decree. However, limited exceptions are granted to early-stage startups.

In particular, for the R&D service sector, which has operated a registration system based on the 'Science and Engineering Support Act,' registration requirements have been significantly relaxed through industry consultations. The proportion of R&D service sales in total sales has been reduced from 50% to 30%, and the number of specialized personnel required for commissioned research businesses has decreased from five to three. Additionally, having a dedicated space separated from other areas, rather than an independent space, is sufficient.

Research operators seeking research equipment performance evaluation must apply to designated evaluation institutions, which will conduct the performance evaluation and issue a report including evaluation items, criteria for each item, and conformity. Institutions such as government-funded research institutes and specific research institutions that have suitable organizations, personnel, and facilities for performance evaluation can be designated as evaluation institutions.

The decree also includes requirements and procedures for designating research industry promotion complexes. Areas where research operators are concentrated, institutions such as universities and research institutes that can support the growth of research operators are located, and there is sufficient demand for the research industry, will be designated as research industry promotion complexes. When the Minister of Science and ICT intends to designate a research industry promotion complex, the procedure now includes hearing opinions from the relevant city or provincial governor and consulting with heads of related central administrative agencies.

Minister of Science and ICT Lim Hye-sook stated, "The research industry, linked to R&D, is an industry that contributes to improving R&D productivity. As South Korea enters the era of 100 trillion KRW national R&D investment, the role of the research industry has become even more important," and added, "The Ministry of Science and ICT will actively support the expansion of the domestic research industry market and the establishment of an industrial ecosystem."

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