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Health Ministry to increase tax incentives for drug R&D projects

Feb. 15, 2013 - 21:25 By Korea Herald
The Ministry of Health and Welfare said it will increase tax incentives to pharmaceutical companies that invest in the research and development of new drugs, officials said Friday,

As a revised law on special tax treatment control takes effect, small- and medium sized companies investing in R&D projects will get more deduction on corporate tax from 25 percent to 30 percent. Big companies will also get tax deductions of up to 20 percent from 3-15 percent.

Companies are expected to enjoy tax deductions worth 34 billion won ($31 million), officials said.

Local drugmakers in joint ventures with multinational firms, have been expanding overseas businesses and investments. Their investments into R&D projects also surged 37 percent last year in the third quarter in 2012, up from 23 percent in the same period the previous year.

By Cho Chung-un (christory@heraldcorp.com)