South Korean government considering designating OLED as national strategic technology

According to the latest report, the South Korean government is considering designating OLED as a national strategic technology. If designated, companies in this industry can receive substantial tax benefits in terms of facility investment and R&D costs.

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The proposal was made by the Korea Display Industry Association, and the Ministry of Trade, Industry, and Energy recently discussed the matter. Currently, the number of such technologies is 34, including advanced semiconductors, vaccines, and electric vehicle batteries.

Specifically, the corporate tax deduction related to investment in facilities is 16% for small and medium businesses, 6% for large businesses, and 8% for businesses in between. Add a 4% deduction if the investment is for a facility expansion.

In terms of tax relief related to research and development, the tax rate is 40% to 50% for SMEs and 30% to 40% for other businesses. This is much higher than the tax rate that applies to non-strategic technologies, where the tax rates are 2%, 25%, and 8% for large corporations, SMEs, and businesses in between.

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