Korea to halve R&D fees, boost researcher rewards

[Photo by MK DB]

The South Korean government will cut the fees imposed on companies participating in government-led national research and development (R&D) in half and increase rewards for researchers to promote R&D in the private sector.

The move, which was unveiled by the Ministry of Science and ICT during an economic ministers‘ meeting on Monday, is part of the government’s efforts to improve the fee system and maintain a virtuous cycle in R&D.

The government has been requiring businesses to pay fees if they generate revenue from R&D achievements supported by government funding. This policy was initially introduced to secure financing sources and facilitate R&D efforts, but companies are complaining that they find these fees burdensome.

Under the revised measure, the government will reduce the fee rates by half, cutting the current rates of 5 percent for small- and medium-sized enterprises (SMEs), 10 percent for middle-market businesses, and 20 percent for large corporations to 2.5 percent, 5 percent, and 10 percent respectively.

It will also increase the reward fee criteria for researchers. When researchers at universities or government-funded research institutions succeed in commercializing their research results, the standard for the reward fee will be raised to 60 percent or more from the current 50 percent. Additionally, SMEs who consistently pay their fees on time, completing full payments within two to three years for example, will be given incentives when applying for other R&D projects.