Corporate Research Laboratory Establishment in Korea — 2026 Guide

1. Why Establish a Corporate R&D Lab?

A recognized corporate research laboratory (기업부설연구소) or R&D department (연구개발전담부서) recognized by the Institute for Information & Communications Technology Promotion (IITP) qualifies for substantial R&D tax credits under the Tax Incentive Limitation Act.

2. Eligibility

• Small companies: at least 2 full-time researchers
• Medium companies: at least 5 full-time researchers
• Large companies: at least 10 full-time researchers
• Researchers must hold relevant degrees or experience

3. Research Personnel Requirements

Researchers must have a degree in a relevant field (science, engineering, IT, etc.) or equivalent experience. At least one researcher must be a full-time employee dedicated to R&D.

4. Facility Requirements

• Dedicated physical space for research activities
• Separate from general office operations
• Research equipment appropriate to the field

5. Required Documents

• IITP recognition application
• Research plan
• Researcher credentials (diplomas, employment records)
• Floor plan of research facility
• Equipment list

6. Application Procedure

1. Online application through IITP portal (www.rnd.or.kr)
2. Document review
3. On-site inspection (for some cases)
4. Recognition certificate issued (2–4 weeks)

7. Tax Benefits

• SMEs: 25% tax credit on R&D expenditures
• Mid-size companies: 8% tax credit
• Large companies: 0–2% basic, higher for incremental R&D
• Accelerated depreciation on research equipment