The South Korea Government has added 16 fields including blockchain to research and development (R&D) tax credit to foster technology innovations.

The Ministry of Strategy and Finance, in a document, announced that the proposed amendments to the enforcement decree of the 2018 tax law will be enforced starting this February. The proposed changes will allow companies developing blockchain technologies to have partial tax cut in their R&D spend.

According to a report of The News Asia, small enterprises can deduct 30-40% of R&D expense, while 20-30% R&D costs for medium and large-sized corporations would be tax-deductible. The figures mark a dramatic increase over the current tax breaks offered to companies.  

Together with blockchain, corporate tax reduction in R&D zones for companies working on fine dust reduction technology and wearable robots can claim the R&D tax relief.