Master in Science in R&D Business to be Exempted from Military Service

Starting next year, men with a master’s degree in science will be exempted from mandatory military service once they work for four years as a researcher at a research and development (R&D) service company.

Also, starting from the second half of this year, one can take advantage of tax benefits of 50 percent reduction on corporate and income taxes for four years for establishing a research center or a branch of an existing institute.

Those are the backbone of the “R&D Promotion Program” set forth by the government, which was chosen to be implemented at the Economic Ministerial Meeting held at the Gwacheon Government Building on July 16 under the supervision of Deputy Prime Minister and concurrent Minister of Finance and Economy Lee Hun-jae.

The program is to separate the function of R&D service from government-funded research centers and have them run independently in order to promote the invigoration of the R&D services industry. Also, starting from the latter half of this year, a 50 percent tax cut on corporate and income taxes will be applied for the first four years after the establishment of a new R&D service center. Afterward, there will be additional tax benefits depending on how much the center or the company has contributed in increasing employment.

Along with those plans, the program includes additional measures to apply the “Professional Research Agent” system for professional man power working at R&D service companies in order to nurture professionals in R&D. Under the system, researchers with a master’s degree in science will be exempted from the military service once they serve at designated research centers for four years.

Meanwhile, as the importance of the Silver industry (an industry targeted for citizens over 60 years of age) grows with the further progression of the aging of society, the government decided on yesterday’s meeting that they will put together promotional plans for different sectors including housing, leisure, and medical care for elderly citizens through inter-ministry consultations and present them at the meeting for state affairs in October.

Also, the enactment bill for “Promotional Laws for the Silver Industry” is to be submitted to the National Assembly by this fall in time for the regular assembly session which will provide the legal support for the Silver industry.

R&D Services Industry: An industry that carries out independent or commissioned research and development (R&D) projects in science and technology, or provides support for these projects through consultation, test and analysis, and information gathering.

Chi-Young Shin higgledy@donga.com