OLED Likely to Be Designated as National Strategic Technology
The South Korean government is considering designating OLED as a national strategic technology. If designated, companies in the industry can be given sizeable tax benefits with regard to facility investment and R&D costs.
The designation was proposed by the Korea Display Industry Association and the Ministry of Trade, Industry and Energy recently discussed the matter. The current number of such technologies is 34, including advanced semiconductor, vaccine and EV battery.
Specifically, the corporate tax deduction related to facility investment is 16 percent for small and medium-sized enterprises, 6 percent for large enterprises, and 8 percent for those between them. A 4 percent deduction is added in the event of investment for facility expansion.
When it comes to the R&D-related tax deduction, the rate is 40 to 50 percent for small and medium-sized enterprises and 30 percent to 40 percent for the rest. These are much higher than those applied to non-strategic technologies, which are 2 percent, 25 percent and 8 percent for large enterprises, small and medium-sized enterprises, and those between them, respectively.