South Korea to support 2,559 AI startups with tax relief

South Korea’s Ministry of SMEs and Startups and the National Tax Service have announced a collaborative support program for 2,559 artificial intelligence (AI) SMEs and startups. The initiative aims to reduce tax burdens and provide growth-stage assistance to help these companies focus on research, development, and global expansion.

Under the plan, AI startups founded within the last five years will be excluded from regular tax audits. Other AI-focused SMEs can apply for a deferral of regular tax audits for up to two years, with companies located in non-metropolitan areas receiving a three-year deferral. To support liquidity, the National Tax Service will prioritize the early payment of tax refunds and provide consulting for corporate tax deductions.

The Ministry of SMEs and Startups will complement these tax measures by providing support for R&D, commercialization of AI products, smart factory implementation, and global accelerating services.