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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
Research and Development Service Businesses : Category,Content,Eligible Businesses
Category Content Eligible Businesses
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
  • Physics, chemistry, and biology
  • Agriculture
  • Engineering and technology
  • Other natural sciences
  • Convergence fields related to science and engineering
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
  • R&D consulting
  • Technology market research
  • Patent administration and agency
  • Investment and financing for technology development, mediation and agency of technology and trading
  • Material component inspection
  • Structure and product inspection
  • R&D product design
  • Researcher recommendation, education, and training
  • Convergence fields related to science and engineering
※ 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
Please refer to the information below Please refer to the information below
  1. sumit document - online (request for additional)
  2. review document - KORSIA
  3. evaluate sites - KORSIA/APPLICANT
  4. approve - KORSIA
  5. issue a certificate - online
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- 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.
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.
Requirements for Approval : Category,Research and development service,Research and development support service
Category Research and development service Research and development support service
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
HR Support : Support Provided,Content,Contact
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
※ 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
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
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
  • Basic research
  • Space technology development
  • Nuclear
  • Nuclear fusion · accelerator
  • Information, telecommunication, and broadcasting
  • Industrial technology development
  • Energy technology development
  • Technology transfer and commercialization
  • Electric power industry related technology development
  • Cooperative utilization of research equipment
  • Technology innovation development for SMEs
  • Hybrid technology development for SMEs
  • Technology commercialization for SMEs
  • ESP (technology specialists)
  • Construction technology
  • Plants
  • National territory information
  • Railway technology
  • Aviation safety
  • Livestock disease response technology
  • High value-added food technology development
  • Agricultural science industrial technology
  • High-tech production technology development
  • Post-genome ethical, legal, and social implications
※ 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
Financial Support : Support,Content
Support Content
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
Tax Support : Support Provided,Content
Support Provided Content
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

Procedures

Notification of research and development service businesses is only available online. Additional documents may be requested following initial reviews of documents and sites.