Corporate Research Laboratory Establishment

Common situations

Pick the question closest to your case: each one gives the conclusion first, then what changes it, the documents involved and the expected timeline.

1. Our small company in Korea is two years old. Can we get corporate R&D center recognition with just two researchers?

   Short answer Yes. A research institute set up by a small enterprise normally needs at least 3 dedicated researchers, but for the first 3 years from the founding date, 2 or more meet the staffing standard.

   • A small enterprise less than 3 years from its founding date File the recognition application with 2 qualified dedicated researchers and an independent research space. Once 3 years have passed, the 3-person standard applies, so plan hiring before then.
   • An R&D-type SME or venture company founded by a researcher or faculty member The standard of at least 2 dedicated researchers applies, and documents proving the company's status are submitted with the application.
   • Only one qualified researcher on staff Consider getting recognition first as a dedicated R&D department (at least 1 person) instead of a corporate R&D center.

   Documents

   Corporate R&D center recognition application, R&D activity summary, research equipment list, R&D staff list, organization chart of the company and the research unit, full-floor and interior plans with photos, and proof of researcher or faculty founding if applicable

   Timeline

   In practice, it depends on document supplementation and the on-site check schedule. The 3-person standard applies once 3 years have passed from the founding date.

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2. We only have one researcher. Can we register a dedicated R&D department first and convert it into a corporate R&D center later?

   Short answer Yes. A dedicated R&D department can be recognized with at least 1 dedicated researcher, and a common path is to apply for corporate R&D center recognition once staffing grows to meet the standard for the company's size.

   • You currently have 1 or 2 dedicated researchers Apply using the dedicated R&D department recognition application form, and meet the research space and equipment standards as well.
   • You meet the staffing standard for your company size (such as 3 for a small enterprise) Apply using the corporate R&D center recognition application form to receive a corporate R&D center certificate of recognition.

   Documents

   Dedicated R&D department or corporate R&D center recognition application, R&D activity summary, research equipment list, R&D staff list, organization chart, full-floor and interior plans with photos

   Timeline

   In practice, it depends on document supplementation and the on-site check schedule.

3. Our office is small, so we divided the research area with partitions. Will it still qualify as a corporate R&D center in Korea?

   Short answer Where a research institute set up by an SME, R&D-type SME or venture company, or the R&D department of an information service or software development and supply business, cannot secure more than 50 square meters, a research space separated by partitions is also treated as an independent space.

   • The company falls into one of the above categories and cannot secure more than 50 square meters Place the research equipment in a space separated from other departments by partitions, and show the separation with plans, the entrance sign and interior photos.
   • Walls cannot reach the ceiling because of ventilation, heating and cooling or fire safety Separate the space with fixed walls at least 2 meters high from the floor and a separate entrance; it is recognized if it is identifiable as a dedicated research space and complies with building laws.
   • None of the above exceptions apply Provide an independent space separated from other departments by fixed walls and a separate entrance.

   Documents

   Full-floor plan and interior plan of the floor where the research unit is located, photos of the dedicated entrance sign and interior, research equipment list

   Timeline

   In practice, reviewing the plans before any construction work reduces supplementation requests.

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4. We use a detached house as our office. Can we set up a corporate R&D center inside it?

   Short answer No. Under the compliance duties, corporate R&D centers may not be set up in detached houses or multi-unit housing under the Building Act (건축법), or in unpermitted or temporary buildings. A violation is a ground for revocation of recognition.

   • The research space is inside a detached house or multi-unit housing Set up a separate research space in a permitted building that is not housing, then apply for recognition.
   • The building is permitted but the space is shared with other departments Divide the space to meet the independent space standard (fixed walls and a separate entrance, or the partition exception).

   Documents

   Full-floor plan and interior plan of the floor with the new research space, photos of the dedicated entrance sign and interior

   Timeline

   In practice, the application date depends on when the space is ready.

5. Can a dedicated researcher at our Korean company also handle sales or production work?

   Short answer No. A person dedicated to research must not take on other work such as production, sales or business development beyond R&D-related work. A violation breaches the compliance duties and is a ground for revocation of recognition.

   • An employee researcher is also handling other work Reorganize the organization chart and job assignments around R&D work, and hire additional staff to meet the staffing standard if needed.
   • The CEO of a small enterprise less than 3 years from its founding date does R&D work This falls under the exception to the dual-role ban and the exclusion from dedicated researchers, so the CEO may be recognized as a dedicated researcher.
   • The CEO of a company more than 3 years old Recalculate whether the staffing standard is met without counting the CEO.

   Documents

   Organization chart, R&D staff list, and records proving employment such as health insurance and national pension enrollment lists

   Timeline

   In revocation proceedings, the grounds for revocation and how to submit an opinion are notified at least 15 days before the hearing.

6. A dedicated researcher quit and we are now below the staffing standard. What do we need to do, and by when?

   Short answer A change in R&D staff requires a change report, filed with KOITA within 30 days of the change. If staffing falls below the standard, a supplementation order with a period of at least 1 month is issued, and recognition may be revoked if it is not complied with.

   • You hired a replacement researcher right away File a change report reflecting the departing and new researchers, and check that the new researcher meets the qualification standards.
   • Hiring a replacement right away is difficult Plan to hire within the supplementation order period, keeping in mind that failing to comply within the period is a ground for revocation.
   • The change report deadline has passed Failing to report within 1 year of the change is a ground for revocation, so file the report now.

   Documents

   Change report, documents proving the change (departure and hiring records, proof of the new researcher's qualifications)

   Timeline

   Change report within 30 days; supplementation order period of at least 1 month; failure to report within 1 year of the change is a ground for revocation

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7. If our company moves offices, do we have to file a separate report for the corporate R&D center?

   Short answer A change in the location of the company or the R&D center, or in the research space, requires a change report filed within 30 days of the change.

   • The R&D center is moving to the new office too Lay out the new space to meet the independent space standard, and file a location and research space change report with the new plans and photos.
   • Only the head office is moving and the R&D center stays File a change report for the change in company location.
   • The new location is a detached house or multi-unit housing This is restricted as a location, so find another site.

   Documents

   Change report, documents proving the change, full-floor and interior plans with photos of the new research space

   Timeline

   Within 30 days of the change

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8. Can a service-sector company in Korea set up a corporate R&D center? Are the researcher qualification rules different?

   Short answer Yes. For R&D in industrial design or R&D at a company whose main business is an eligible service-sector industry, researchers can qualify as dedicated researchers without a natural sciences major.

   • The company's main business is an eligible service-sector industry Build the team of dedicated researchers from holders of a bachelor's degree or higher, holders of a Level 1 or higher national technical qualification in a service field and the like, and submit the SME criteria review sheet or VAT return.
   • The company is an SME An associate degree with 2 years of experience, or a Level 2 or single-level service-field qualification with 2 years of experience, is also accepted.
   • The research is in manufacturing or technology The basic qualification is a bachelor's degree or higher in natural sciences or engineering, or an engineer-level or higher technical qualification.

   Documents

   Recognition application, R&D activity summary, R&D staff list, SME criteria review sheet or VAT return, full-floor and interior plans with photos

   Timeline

   In practice, it depends on the industry eligibility review and document supplementation.

9. After a corporate R&D center is recognized in Korea, what can lead to the recognition being revoked?

   Short answer Recognition must be revoked if it was obtained by false or fraudulent means, or if the company requests revocation or closes down. It may be revoked for failing to file a change report within 1 year, not complying with a supplementation order, breaching compliance duties, refusing an on-site inspection, or having no R&D activity.

   • Recognition was obtained by false or fraudulent means Recognition is revoked, no new application can be filed for 1 year from the revocation date, and an administrative fine of up to KRW 5 million may be imposed.
   • Staffing or space falls below the recognition criteria Hire or fix the space within the supplementation order period of at least 1 month.
   • Compliance duties (no dual roles, location, annual R&D performance report, submission of materials) are not met This is a ground for revocation, so manage the follow-up schedule, including filing the R&D performance report every year by April 30.

   Documents

   Proof of hiring or space corrections when responding to a supplementation order, opinion submission materials, R&D performance report

   Timeline

   Notice at least 15 days before the hearing; supplementation order period of at least 1 month; R&D performance report every year by April 30

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10. How much does it cost to set up a corporate R&D center in Korea, and what should we prepare first?

    Short answer Costs vary widely depending on which researchers and research space you already have and what still needs to be put in place, so the first step is to check which recognition criteria you fall short of. The recognition application is filed through KOITA's online system.

    • You already have dedicated researchers and an independent research space The work centers on drafting documents, preparing plans and photos, and filing with KOITA.
    • The research space needs to be newly divided Before building walls or entrances, review the plans against the independent space standard and the partition exception.
    • Researcher qualifications are unclear First check the qualification standards against degree, qualification and experience records.

    Documents

    Recognition application, R&D activity summary, research equipment list, R&D staff list, organization chart, full-floor and interior plans with photos

    Timeline

    In practice, the overall schedule depends on the time needed to prepare the space and supplement documents.

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11. If we hire an administrative agent for corporate R&D center registration in Korea, what do they handle?

    Short answer We review the number and qualifications of dedicated researchers for your company size, prepare plans and photos of the research space, draft the recognition application, R&D activity summary and staff and equipment lists, file with KOITA, handle the on-site check and supplementation, and file change reports after recognition. We do not carry out construction of the research space or file tax credit claims.

    • Applying for recognition for the first time We prepare and file the application documents from the requirements review through to issuance of the certificate of recognition.
    • Already running a recognized R&D center We prepare change reports for researcher turnover or relocation and documents in response to supplementation orders.
    • Seeking the research and human resources development tax credit Applying for and claiming the tax credit is checked by a tax accountant or other tax professional.

    Documents

    Business registration details, researchers' degree, qualification and experience records, office plans and photos, organization chart

    Timeline

    In practice, it depends on space preparation and whether documents need supplementation.

12. Can a foreign-invested Korean corporation get corporate R&D center recognition?

    Short answer A company formed under the Commercial Act is eligible, and it needs to meet the same staffing standard for its size and the same independent research space standard.

    • A Korean corporation sets up an R&D center in Korea Apply after meeting the staffing standard for your category (small, medium, mid-sized or other company: at least 3, 5, 7 or 10 people, etc.).
    • The corporate research institute is located outside Korea The standard of at least 5 dedicated researchers applies.

    Documents

    Recognition application, R&D activity summary, research equipment list, R&D staff list, organization chart, full-floor and interior plans with photos, and proof of mid-sized enterprise status if applicable

    Timeline

    In practice, it depends on document supplementation and the on-site check schedule.