"'Venture Investment Tax Benefits' Ending This Year Extended"... A Look at Startup-Related Laws

Kospo Announces Key Startup-Related Bills
"Delivery Robots Regulated Under 60kg and Below 15km/h"
"New Advertising Support Program for SMEs and Venture Companies"

[Asia Economy Reporter Kim Bo-kyung] A bill to extend the tax benefits for venture company investments by three years has been proposed. A bill defining delivery robots and regulating their traffic methods has also been submitted to the National Assembly.

Korea Startup Forum, a private startup organization, announced the major startup-related bills recently proposed through the 'September Kospo Policy Office Newsletter.'

First is a bill (Amendment to the Restriction of Special Taxation Act) to extend various benefits such as tax reductions received when investing in venture companies. It was jointly proposed by Bae Jun-young, a member of the National Assembly's Planning and Finance Committee from the People Power Party.

The bill extends the non-taxation benefits on acquisition and capital gains from stocks or equity when nationals invest in venture companies, small business founders, or new technology businesses by three years. This reflects the argument that to revitalize the venture startup ecosystem, the tax benefit period should be extended to induce private capital inflow.

Under current law, the application period for such tax benefits is scheduled to end on December 31 of this year, but if the bill passes, it will be extended until December 31, 2025.

Outdoor delivery robot of Woowa Brothers (operator of Baedal Minjok)

Additionally, an amendment to the Road Traffic Act (jointly proposed by Jeong Il-young of the Democratic Party) was submitted to newly establish specific regulations such as the definition and traffic methods of delivery robots.

As the potential for development in the 'last mile' delivery sector, which guarantees delivery up to the final contact point with consumers, grows, domestic companies are actively developing delivery robot technology and services. However, there have been criticisms that current laws do not support such innovations, raising the need for legal amendments.

Jeong's bill newly defines living logistics service robots that provide logistics transfer services and regulates their traffic and road crossing methods. Jeong explained, "The aim is to allow living logistics service robots to use roads legally and to support the development of the logistics transfer robot sector."

The bill stipulates that living logistics service robots operate at speeds of 15 km/h or less and have a self-weight of less than 60 kg. On roads where sidewalks and carriageways are separated, they must always travel on the sidewalk, and if they obstruct pedestrian traffic, they must slow down or stop temporarily.

Hwang Bo-seung-hee of the People Power Party proposed a bill (Amendment to the Small and Medium Enterprise Promotion Act) allowing the Minister of SMEs and Startups to use funds to support advertising projects for small and venture companies.

Hwang believes that for small and venture companies to establish self-sustainability, government advertising support is necessary to enhance social awareness of their products, including establishing their own brands.

The bill provides the basis for advertising support projects for small and venture companies, designates public institutions or organizations with expertise and personnel as executing agencies, and allows the use of the Small and Venture Business Startup and Promotion Fund for advertising support.

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