Government to lift R&D regulations, encourage innovationKorea said Tuesday it will provide more leeway to companies participating in state-sponsored research and development (R&D) projects, as the new coronavirus pandemic has led to more uncertainties in global industries.
Under the plan, the country will lift regulations in industrial R&D programs and allow companies to revise their research goals during their project as well, according to the Ministry of Trade, Industry and Energy.
State-sponsored R&D projects were previously virtually banned from adjusting their goals or changing spending plans of their budget due to strings of regulations.
With the Covid-19 pandemic causing economic jitters for businesses, the country said it will also ease the financial burden of private companies in state R&D projects, and induce more small- and medium-sized firms to join hands with conglomerates.
The industry ministry allocated 4.2 trillion won ($3.53 billion) in its R&D budget for 2020, rising sharply from 3.4 trillion won from 2019.
Korea plans to disburse 4.9 trillion won in the area next year.
The ministry said international R&D projects, which currently account for less than 3 percent of the ongoing programs, will account for up to 15 percent by 2023 by easing related regulations as well.