Human resources standards for research specialists in mid-sized companies,
Relaxation from 10 to 7 people regardless of sales
Excluding blockchain-based crypto asset trading and brokerage


The Ministry of Science and ICT and the Korea Industrial Technology Association announced on the 2nd that they will revise and promulgate the enforcement decree and enforcement rules of the Act on Promotion of Basic Research and Support of Technology Development to improve regulations related to private R&D activation and corporate research institutes.

The main revisions include that most service sector companies, excluding six industries (general entertainment establishments, dance entertainment establishments, other establishments, management and operation of other gambling facilities, dance studio operations, and blockchain-based cryptocurrency trading and brokerage), can be recognized as corporate research institutes, and that the personnel standards for dedicated research staff at mid-sized companies will be relaxed (from 10 to 7 people) regardless of sales volume.

The requirements for recognition of separated areas, which were previously only available to small businesses or smaller, i.e. spaces separated by partitions rather than independent spaces with all four sides closed, have been expanded to allow reporting by medium-sized businesses (including small businesses and venture businesses), and the separated area area has also been expanded (from 30 to 50㎡). The mandatory reporting period for changes to corporate research institutes, including the technical department, was also extended from 14 to 30 days.

Instead, institutional measures have been established to prevent the establishment of false research institutes, including establishing a legal basis for objectively verifying the identity of employees of small and medium-sized enterprises (SMEs) or affiliated companies. Companies must submit documents proving their SME status, such as a certificate of SME certification, as well as proof of the research staff's membership in one of the four major insurance programs or a tax withholding certificate for earned income.

Looking at the number of research institutes and researchers currently recognized by the government, as of 2019, there were 40,750 reported research institutes, of which 9,202 (22.6%) were recognized as research institutes in the service sector, and out of the total number of researchers (337,420), the number of researchers in the service sector was 55,189 (16.4%).

An official from the Ministry of Science and ICT said that they expect that this revision of the Basic Research Act will lead to an increase in R&D activities in service sectors such as the real estate industry, such as open real estate platforms, and the food industry, such as delivery app services and unmanned delivery robots.