South Korea’s InnoBiz Association welcomes government’s tax reform plan, highlighting measures to boost innovation and growth among small and mid-sized enterprises, including new production tax credits and inheritance tax relief.
South Korea’s InnoBiz Association has welcomed the government’s tax reform proposal, saying it could help revive growth and strengthen innovation among small and mid-sized companies. In a statement on Sunday, the group said it broadly agreed with the policy’s aim of restoring the country’s growth engine and encouraging more ambitious investment by smaller firms.
The association said one of the most promising elements was a new domestic production tax credit, which it believes could spur advanced manufacturing companies to invest more aggressively in technology and development. It described the measure as an important stepping stone for InnoBiz-certified firms, many of which are technology-driven start-ups or scaling companies, to expand into global markets.
It also backed the plan to introduce a more gradual tax support structure for growing small businesses and to lengthen grace periods. According to the association, those changes could reduce the hesitation some firms feel when they get bigger and help build a smoother progression from small enterprise to mid-sized company and, eventually, large corporation.
On family business inheritance tax relief, the group praised the decision to take professional skills and know-how into account when valuing a business. It said that approach better reflects the worth of technology and intangible assets, but added that policymakers should continue consulting companies and industry groups before finalising the system.
The association urged the National Assembly to turn the proposal into law and said it wanted InnoBiz firms to be able to innovate without unnecessary barriers. The Ministry of SMEs and Startups, which is behind the broader reform push, says the package is designed to support investment, ease expansion costs and improve the business environment for small and medium-sized enterprises.
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