Article 16 (Income Deduction for Contributions and Investments in Venture Investment Partnerships, etc.)

Where a resident makes a contribution or investment falling under any of the following subparagraphs, an amount equivalent to 10 percent of the contributed or invested amount (in the case of contributions or investments falling under subparagraphs 3, 4, or 6, 100 percent of the amount up to 30 million won, 70 percent of the amount exceeding 30 million won up to 50 million won, and 30 percent of the amount exceeding 50 million won) shall be deducted from the comprehensive income amount for the taxable year in which the contribution or investment date falls (in the case of subparagraph 3, an amount equivalent to the contributed or invested amount shall be deducted from the comprehensive income amount for the taxable year in which the date of becoming a business under subparagraph 3, 4, or 6 occurs, as prescribed by Presidential Decree), up to 50 percent of the comprehensive income amount for the relevant taxable year: Provided, That this shall not apply to contributions or investments made by acquiring the equity interest or investment interest or beneficiary certificates of another person. 1. Where contributing to a venture investment partnership, a private indirect venture investment partnership, a new technology business investment partnership, or a specialized investment partnership. 2. Where investing in beneficiary certificates of a venture business investment trust (hereinafter referred to as "venture business investment trust" in this Article) as prescribed by Presidential Decree. 3. Where investing, as prescribed by Presidential Decree, the amount contributed to a personal investment partnership into a venture business or a small and medium-sized enterprise within 3 years after its establishment that is equivalent to a venture business (hereinafter referred to as "venture businesses, etc." in this Article and Article 16-5) as prescribed by Presidential Decree. 4. Where investing in venture businesses, etc. pursuant to the 「Act on the Promotion of Venture Businesses」. 5. Where investing in a startup/venture specialized private equity investment trust. 6. Where investing in the equity securities of a small and medium-sized enterprise within 7 years after its establishment, which is recruited through online small-sum investment brokerage pursuant to Article 117-10 of the 「Capital Markets and Financial Investment Business Act」 and falls under categories prescribed by Presidential Decree.

The income deduction under paragraph ① shall also apply when a business that did not fall under subparagraphs 3, 4, or 6 of the same paragraph at the time of investment subsequently becomes a business falling under those subparagraphs by the end of the taxable year in which the second anniversary of the investment date falls.