South Korea's Ministry of Science and ICT said the Act on Supporting R&D at Company-affiliated Research Institutes and the law's enforcement decree and rules will take effect from the 1st.

The ministry said the implementation focuses on making the corporate R&D environment more flexible and building an institutional foundation so the achievements of corporate researchers can be socially respected.

The law reorganises the system for company-affiliated research institutes and dedicated R&D departments, previously operated under the Framework Act on the Promotion of Basic Research and the Support of Technology Development, into an independent legal framework. It was enacted and promulgated in January last year to set consistent standards for recognising, managing and supporting corporate R&D organisations.

With the law taking effect, the recognition system for company-affiliated research institutes will be improved. Research space will in principle be separate, but space partitioned with movable walls will also be recognised when fixed walls are difficult to install. Master's course students participating in national R&D projects will be recognised as dedicated R&D personnel under the requirements, allowing broader use of strong researchers in the field. Multiple secondary locations, previously limited to 1, will be allowed to be established and operated.

The remedial period for failing to meet recognition standards will also be extended. Previously, recognition could be cancelled if requirements were not met within 1 month after an order to remedy. Going forward, the remedial period can be extended up to 2 months at a company's request. Employees working at research institutes will also be allowed to hold other duties only if they are in research management roles.

If a company-affiliated research institute or dedicated R&D department is subject to an ex officio cancellation, it cannot be replaced with voluntary cancellation. The science minister can also conduct on-site inspections to confirm whether recognition standards are maintained and whether changes have been properly reported. Refusing or obstructing an on-site inspection without valid reason constitutes grounds for cancellation of recognition.

Improper acts such as impersonation are also explicitly prohibited. The criteria for imposing administrative fines will be specified, and a 3-year guidance period will be operated to help the system take root.

The ministry will also designate Sept. 7 each year as Technology Developers Day. It plans to mark the achievements of corporate researchers and raise the social value of private-sector R&D.

Bae Kyung-hoon (배경훈), deputy prime minister and minister of science and ICT, said company-affiliated research institutes are a key actor in national R&D that drives national growth and corporate competitiveness. He said the law's implementation will be used as an opportunity to prepare measures to systematically support corporate research activities.