Research and Development Service Businesses
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Research and development service businesses assist in outsourcing of R&D. They are classified into research and development businesses, that conduct profit-making R&D independently or by entrustment, and research and development support businesses, that support R&D activities.
Research and development service providers that report and register to the Korea R&D Service Industry Association (substitutional agency of the Ministry of Science and ICT) are eligible to participate in national R&D projects and receive support from the government.
※ Current status: 821 research and development businesses, 710 research and development support businesses (as of August 2019)
※ Related law: Articles 2 and 25 of the Special Act on Support of Science and Engineers for Strengthening National Science and Technology Competitiveness
※ Related law: Articles 2 and 25 of the Special Act on Support of Science and Engineers for Strengthening National Science and Technology Competitiveness
Category | Content | Eligible Businesses |
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Research and development business | Businesses that conduct some or all R&D activities for companies that are unable to meet their own R&D demands (entrustment), or businesses that independently develop and supply technologies required by the market |
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Research and development support business | Businesses that support R&D activities, such as R&D consulting, R&D planning and evaluation, leasing and transactions of research equipment, technology management and strategy, analysis on science and technology information and the securing and suggesting of personnel to do such tasks |
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※ Source: Korea R&D Service Industry Association (R&D Service Business Registration and Support System)
Notification
Research and development service businesses that meet certain qualifications are eligible to receive a certificate after completing an online application to the Korea R&D Service Industry Association and having documents and sites evaluated.
Procedures
- Processing period : Processing is completed within 30 days from the date of application. Time taken by applicants to correct incomplete applications and submit missing documents is not included in the processing period.


- sumit document - online (request for additional)
- review document - KORSIA
- evaluate sites - KORSIA/APPLICANT
- approve - KORSIA
- issue a certificate - online

Contact (application for research and development service businesse)
Korea R&D Service Industry Association
- TEL : 02-540-4172
- FAX : 02-540-4132
- E-mail : korsia@rndservice.or.kr
- Hompage : www.rndservice.or.kr
Requirements for Approval
Research and development service businesses must satisfy all HR, physical, and sales requirements to qualify.
Category | Research and development service | Research and development support service |
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HR requirements | At least 5 researchers who majored in natural sciences or engineering | At least 2 researchers who majored in natural sciences or engineering |
Physical requirements | Independent research facility | N/A |
Sales requirements | R&D services account for at least 50% of total sales | - |
Support Provided
Companies registered as research and development service businesses are eligible to participate in national R&D projects, and receive support for researchers, taxation, and funding, etc.
HR Support
Support Provided | Content | Contact | Selection of designated entities for recruiting expert research personnel (special cases for military service) | Articles 36 and 39 of the Military Service Act | KOITA 02-3460-9124 |
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※ Applications for selection of designated entities for recruiting expert research personnel (special cases for military service) must be submitted to the Korea Industrial Technology Association.
Eligible Businesses
Ministry of Science and Technology | Ministry of Trade, Industry and Energy | Ministry of SMEs and Startups | Ministry of Land, Infrastructure and Transport | Ministry of Agriculture, Food and Rural Affairs |
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※ Appropriation of labor costs in cash for research and development service businesses: If a research and development service business participates in national R&D projects, the labor costs for R&D are appropriated in cash.
Financial Support
Support | Content |
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Technology certificate system | Conduct reviews on SME technologies and obtain certification from the Korea Technology Finance Corporation to receive financial support from financial institutions |
Technology evaluation system | Evaluate technicality, feasibility, and marketability of intangible technologies to display the value, grade, score, and opinion |
Contact | Korea Technology Finance Corporation : 1544-1220 |
Tax Support
Support Provided | Content |
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Tax reductions or exemptions for small- and medium-sized startups, etc. | Income tax or corporate tax reduced or exempted for designated SMEs, and research and development service businesses identified as operators at startup incubating centers outside overconcentration control regions |
Special cases for SMEs | Income tax or corporate tax reduced or exempted for SMES, depending on size and location |
Tax deductions for R&D costs | A certain percentage of R&D costs incurred by companies deducted from corporate tax or income tax |
Tax reductions or exemptions related to investment in facilities concerning research and human resource development | A certain percentage of investment in facilities for research and human resource development by Koreans or commercialization of new growth engine industries deducted from corporate tax or income tax |
Tax deductions for technology transfer and acquisition | If the patent rights, utility model rights, confidential technologies, or technologies are transferred to and acquired by a Korean national, a certain percentage of acquisition costs are deducted from income tax or corporate tax of the year. |
Special tax reductions or exemptions for SMEs | Income tax or corporate tax reduced or exempted for SMEs |
Special cases of taxation on R&D related contributions, etc. | The equivalent amount of contributions for R&D excluded from gross income |
Tax reductions or exemptions for high-tech companies in special R&D zones | Income tax (corporate tax) reduced or exempted for high-tech or small-sized research companies located in special R&D zones that are engaged in projects subject to reductions or exemptions |