Manufacturing Startup Companies 'Exemption from Burden Charges', Sunset Deadline Extended by 5 Years

[Asia Economy Reporter Choi Donghyun] The sunset deadline for the 'Burden Fee Exemption System,' which exempts 16 types of burden fees for manufacturing startup companies, has been extended by five years until August 2, 2027.

The Ministry of SMEs and Startups announced that the amendment to the 'Small and Medium Enterprise Startup Support Act,' which includes this content, was approved at the Cabinet meeting on the 11th.

The Burden Fee Exemption System exempts manufacturing startup companies from 16 types of burden fees, including farmland preservation fees and power industry infrastructure fees, for seven years after establishment. Introduced in 2007 to reduce the initial financial burden and activate startups while supporting business growth to create new jobs, the system exempted burden fees worth 33.2 billion KRW for 10,376 manufacturing startups over the past five years from 2017 to last year.

According to a survey conducted by the Ministry of SMEs and Startups last year, 81.5% responded that the burden fee exemption system helped in establishing manufacturing factories. Additionally, these companies showed higher survival rates, sales, and employment compared to general manufacturing companies that did not receive the exemption.

Last year, considering the effects of revitalizing manufacturing startups, the government and the National Assembly fully revised the Startup Support Act, expanding the exemption period from the previous three years to seven years for 12 types of fees excluding water usage fees.

The Ministry of SMEs and Startups plans to post information about the extension of the system’s sunset and how to apply for the burden fee exemption on startup support websites and the Corporate Yard website, which are frequently visited by startup companies, to enable more manufacturing startups to utilize the system.

Furthermore, for local governments implementing the system, the ministry plans to distribute work guidelines and conduct regional training sessions for practical staff to promote understanding of the system’s purpose and ensure smooth implementation on the ground.

Manufacturing startup companies eligible for the burden fee exemption can apply at the corporate support division of their respective city, county, or district office.

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