연구 개발 투자 와 세제 상 의 유인 정책 ( Investments in R & D and incentive policies of tax system ) 
 정책 연구 시리즈 / 84 - 08 
 This study identifies issues within the current tax system , so as to seek ways to address the issues , as well as support investments in research and development ( R & D ) . 
 Investments in R & D have drawn attention recently because the size of the investments can serve as a quantitative index to efforts towards technological development . It will be difficult to expect technological innovation in the future without well - organized investments in R & D . In particular , it is impossible to achieve technological innovation in areas of cutting - edge technology without well - organized investments in R & D . Even when a technology is introduced from another country , Korea ' s own R & D efforts are necessary to adapt the technology to meet local needs . It is only recently that the government and the private sector have started to realize the importance of investments in R & D , which has resulted in discussion of a wide variety of incentive policies to increase investments . 
 This recommends the following measures to address the issues of the current system : First , R & D support should be excluded when the total limit on tax support , as well as the regulation regarding excluding duplicate applications , as applied in enforcement of the Act on Regulation of Tax Reduction and Exemption . Second , Korea ' s tax credit method should be changed . Third , the technology development fund system must be abolished . Fourth , the tax credit system should be improved . Fifth , the special rate of depreciation should be adjusted to 100 percent from 50 percent . However , all of these measures ( except for abolishment of the technology development fund system ) are expected to put a financial burden on the government , and so are difficult to implement . 
 Studying the other countries ' support systems shows Korea provides below - average support for R & D . Other nations ' support seems more effective because , unlike Korea , they don ' t provide diverse support through tax credit . In other words , support becomes more effective when companies try to make investments on a variety of areas with limited resources and give preference to investments in R & D . As a result , this means of support is less effective in Korea , as there are already several types of support systems in the country . 
 Most of the finance provided to support technological development is focused on corporate efforts to make new technologies commercially available , or investments in facilities to manufacture new products , rather than on support for investments in current R & D . Therefore , we should seek ways to increase effective financial support for investments in R & D , and ways to improve financial systems to diversify risks posed by technological innovation .