Rep. Hwang Jeong-ah Proposes Tax Incentives to Elevate SMR as National Strategic Technology
On December 8, Rep. Hwang Jeong-ah of the National Assembly proposed a partial amendment to the Special Taxation Restrictions Act to designate small modular reactors (SMRs) as a national strategic technology.
This aims to bolster institutional support for SMRs amid rising electricity demand driven by the artificial intelligence (AI) industry. The amendment seeks to enhance tax deductions for R&D expenses, increasing the current rates for small and medium-sized enterprises from 50% to 55% and for large enterprises from 40% to 55%.
South Korea's i-SMR and Smart 100 reactors rank among the top types globally, indicating high technological maturity. The legislation emphasizes the importance of expanding power infrastructure to support the AI industry while meeting carbon reduction goals. It follows a previous bill on SMR technology development that passed the committee last December, aiming to create a virtuous cycle from R&D to commercialization in the domestic SMR sector.
