Four additional burden fees including traffic congestion charges exempted for three years
Manufacturing startups in their 6th and 7th year also exempted from farmland preservation charges
Approximately 13,000 manufacturing startups to reduce annual burden by 15.7 billion won
The Ministry of SMEs and Startups announced on December 24th that the revised 'Small and Medium Enterprise Startup Support Act' deliberated at the State Council will take effect from December 31st, significantly reducing the financial burden on manufacturing startups.

The expansion of burden fee exemptions for manufacturing startups is part of a national agenda to create "an entrepreneurial nation that supports innovation." The revised law taking effect targets manufacturing startups within three years to expand burden fee exemptions, and also exempts some fees for manufacturing startups in their sixth to seventh year of operation.

First, startups engaged in manufacturing within three years of establishment have been exempted from a total of 12 burden fees, including electricity industry infrastructure charges and waste management fees, since 2007 to promote manufacturing startup activation. Starting next year, manufacturing startups within three years will additionally be exempted from four burden fees including traffic congestion charges and groundwater usage fees.

Additionally, among the 12 burden fees, the exemption period for farmland preservation charges and alternative pastureland creation fees related to factory establishment will be extended from 5 to 7 years. This addresses the practical issue that while factory establishment typically takes approximately 8 years or more after startup, the current system limits exemptions to within 5 years, leaving startups in their sixth to seventh year without fee exemptions.

Byun Tae-seop, Startup Promotion Policy Director at the Ministry of SMEs and Startups, stated, "The burden fee exemption for startups has been expanded through active cooperation from related ministries and the National Assembly," and added, "This will support approximately 13,000 manufacturing startups with an annual benefit of 15.7 billion won, and will contribute to invigorating manufacturing startups and alleviating operational burdens."

Entrepreneurs seeking to receive burden fee exemptions can submit a burden fee exemption application form and related documents to the competent local government. Detailed information can be found on the K-Startup website (http://www.k-startup.go.kr).