Innobiz Association: "Tax Reform Plan Will Promote SME Growth and Innovation"
"Family Business Inheritance Deduction Needs to Reflect On-the-Ground Voices"
The Innobiz Association (Korea Association of Technology Innovation for SMEs) has expressed its support for the 2026 tax reform plan.
On the 9th, the association issued a statement saying, "We deeply sympathize with the purpose of the tax reform plan aimed at boosting innovation momentum among small and medium-sized enterprises."
First, the association expects that the newly introduced domestic production tax credit will encourage investment and technological innovation among Innobiz companies focused on advanced manufacturing, serving as a foundation for them to grow into global startups.
Regarding the introduction of a tapered tax support structure and an extension of the grace period to promote SME growth, the association assessed that "it will help alleviate avoidance behaviors caused by fear of moving up to the next business tier, and play a major role in establishing a virtuous growth ladder from SMEs to mid-sized companies and ultimately to large corporations."
The association also gave a positive assessment of the proposed revisions to the family business inheritance deduction, which specify professional skills and know-how in business appraisals to better reflect technological value and expand the deduction limit. However, it added that it is necessary for the government and the National Assembly to sufficiently gather opinions from the business field during their discussions and reflect them in the system.
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Finally, the association stated, "We hope that legislation will be realized at the National Assembly level," adding, "The association, together with Innobiz companies, will do its utmost to achieve an 'economic leap forward for an irreplaceable Republic of Korea' through unrivaled technological innovation."
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