Corporate Research Laboratory Establishment in Korea — 2026 Guide

1. Why Establish a Corporate R&D Lab?

A corporate research laboratory (기업부설연구소) or R&D department (연구개발전담부서) is recognized by the Minister of Science and ICT, and the recognition work is entrusted to the Korea Industrial Technology Association (KOITA). A recognized lab or department is the basis for R&D tax credits on in-house research under the Tax Incentive Limitation Act.

2. Eligibility

• Small enterprises: at least 3 full-time researchers (at least 2 until 3 years after founding)
• Medium enterprises: at least 5 (at least 3 for 1 year after growing from a small enterprise)
• Venture companies and R&D-type SMEs founded by researchers or professors: at least 2
• Mid-sized (middle-market) companies: at least 7; other companies: at least 10; labs located abroad: at least 5
• R&D department (연구개발전담부서): at least 1, regardless of company size

3. Research Personnel Requirements

Full-time researchers generally need a bachelor degree or higher in natural sciences, engineering or medicine, or an engineer-level (기사) or higher national technical qualification. SMEs may also use certain associate degrees or qualifications combined with R&D experience. Researchers must be verifiable employees (health insurance, national pension or payroll withholding records). Representatives, auditors and non-standing directors generally cannot be full-time researchers, except the representative of a small enterprise within 3 years of founding who does R&D-related work.

4. Facility Requirements

• Independent research space separated from other departments by fixed walls and a separate entrance
• SMEs, venture companies and certain others that cannot secure more than 50 square meters may use a space separated by partitions
• Research equipment placed inside the research space; labs may not be set up in detached houses, multi-unit housing, or unpermitted or temporary buildings

5. Required Documents

• Recognition application (Form 1 for a lab, Form 6 for an R&D department), submitted to KOITA (online submission allowed)
• R&D activity overview, research equipment list and R&D personnel status (Forms 2–4)
• Organization chart
• Floor plans of the floor and of the research space, including photos of the dedicated entrance sign and interior
• Lab safety budget statement and insurance certificate (labs with 10 or more researchers and assistants)

6. Application Procedure

1. Online application to KOITA
2. Document review
3. On-site inspection (where necessary)
4. Recognition certificate issued (processing period on the lab application form: 10 days)

7. Tax Benefits

• General R&D expenses: SMEs 25% of current-year expenses or 50% of the amount exceeding the previous tax year; mid-sized companies 8% or 40%
• New growth/source and national strategic technology R&D: SMEs 30% and 40% respectively, plus an additional rate based on the ratio to revenue
• Credits that could not be used can be carried forward for 10 years
• Tax benefits depend on company size, expense category and tax year, so confirm them with a licensed tax accountant