The cost of purchasing data used to train artificial intelligence (AI) models will be included in research and development (R&D) tax credits.

The Ministry of Science and ICT said on Monday that a revision to the enforcement decree of the Restriction of Special Taxation Act, containing the change, was approved at a cabinet meeting. The revised decree will be promulgated and implemented within this month, and will apply to R&D spending incurred from Jan. 1 this year.

Investment in AI training data is a core part of R&D that determines AI model performance, but corporate burdens have grown as data requirements surge. The government has designated AI as a national strategic technology in a push to become one of the world’s top three AI powers, and is supporting stronger AI ecosystem competitiveness by including cloud usage fees in the scope of R&D tax credits.

In addition, reflecting industry requests to ease the burden of purchasing AI training data, the government included such purchases in the R&D tax credit. For AI training data bought for AI development, small and medium-sized enterprises can deduct up to 50 percent and mid-sized and large companies up to 40 percent from corporate or income tax.

Kim Kyung-man (김경만), head of the AI Policy Bureau at the Ministry of Science and ICT, said, "We will continue to work to build an ecosystem in which the AI industry and the content industry grow together."