Jul 29, 2016 | By Tess
If you or your company have been struggling to raise the funding for innovative research and development within the 3D printing industry, you might consider relocating to South Korea. In a recent announcement, the South Korean government has stated it is planning to expand tax benefits for R&D within a number of tech industries, including 3D printing, robotics and more. The tax benefit plan is hoping to encourage innovation within the country, boost employment, and make South Korea a stronger competitor on the global market.
According to the South Korean Ministry of Strategy and Finance’s proposed plan, up to 30% of research and development expenses will be tax deductible for both small and medium sized companies. Large companies and conglomerates, for their part, will be eligible for 20% deductions on R&D. The benefits will be applicable as of 2017 and will cover 11 main sectors. These include 3D printing, artificial intelligence, flexible displays, hyper-plastics, robotics, and the aerospace sector. The key areas were selected because of their potential for stimulating economic growth, or as “economic growth engines”, as the government put it.
South Korean Vice Finance Minister Choi Sang-mok said of the plan, “Regardless of company size, we’re trying to give benefits to those taking risks. In a difficult economic situation with a lack of growth drivers, this could become a breakthrough in terms of taxation.”
As Sang-mok says, the tax code revision will be implemented in an effort to help bolster the economy through new tech innovations. South Korea’s largest tech conglomerates, like Samsung Electronics Co Ltd. and LG Electronics Inc. already invest billions of dollars into research and development, so the tax code revision is hoping to offer incentive to smaller companies to conduct their own R&D and broaden the national technological industry. Up until now, such small companies have been hesitant to invest significant sums into R&D largely because of economic uncertainty, which in turn has led to a decrease in capital expenditure in the first quarter.
The recent announcement about the new tax code revision is not completely out of the blue, as the current South Korean government—the Park Geyn-hye administration—has focused on promoting and encouraging technological developments within the country. The ultimate hope is that with more innovations within growing tech fields, such as 3D printing, South Korea will grow its own market and be able to maintain competition with China’s vast manufacturing economy.
Within the 3D printing industry, South Korea is already notable for a number of innovative decisions, such as exploring fast-track approvals for 3D printed medical devices. Earlier this year, the South Korean Ministry of Trade, Industry and Energy also announced it would invest $20 million into the development of a 3D printed ship project.
Posted in 3D Printing Technology
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