Seoul: Investments in research and development (R and D) by South Korean internet and communication technology (ICT) companies surged in 2024, driven by the artificial intelligence boom, according to government data released Wednesday. The combined R and D investments by 17,324 ICT companies reached 64.6 trillion won (US$43.7 billion), marking a 13.8 percent increase from the previous year.

According to Yonhap News Agency, the R and D spending by these ICT companies represented 60.6 percent of all corporate R and D expenditures in South Korea for the year. This increase was noted as the steepest in six years. A significant portion of these investments, 96.6 percent, came from the private sector or overseas, while only 3.4 percent, or 2.2 trillion won, originated from government or public sector sources.

The data highlighted that 92.1 percent of the funding was directed towards ICT firms involved in advanced semiconductors, whereas software developing companies accounted for only 6.4 percent. Large conglomerates were at the forefront, with their investment rising by 16.3 percent year-on-year to 53.5 trillion won. Investments by small and medium-sized enterprises also saw an 11.9 percent increase from 2023, while venture firms experienced a slight decline of 0.3 percent.

The report further noted that South Korea's ICT companies created 5,200 additional R and D-related jobs in 2024, increasing the total workforce in this sector to 225,900. This workforce represents 48 percent of all corporate R and D personnel in the country, as pointed out by the Ministry of Science and ICT.