Seoul: South Korean companies spent a record 83.6 trillion won (US$61.1 billion) on research and development (R and D) projects last year as part of efforts to enhance their competitiveness amid an intensifying global technology war. This information was provided by government data released on Thursday.
According to Yonhap News Agency, the 2024 R and D investment marked a 15.3 percent increase from the 72.5 trillion-won spent in 2023. The Ministry of Trade, Industry and Energy compiled these figures, which reflect the investments made by the top 1,000 companies in South Korea based on R and D spending. Of these, 709 companies increased their investment, while 291 reduced theirs.
Tech giant Samsung Electronics Co. led the R and D spending with an investment of 30.2 trillion won, followed by SK hynix Inc. at 4.5 trillion won. Hyundai Motor Co., a leading car manufacturer, invested 4.3 trillion won, and home appliances maker LG Electronics Inc. contributed 3.4 trillion won to R and D efforts in 2024.
Despite the significant investments by Korean conglomerates, the Ministry noted that their R and D spending still lagged behind global peers. Only 40 South Korean companies made it to the list of the top 2,000 global companies with substantial R and D projects in 2023. In contrast, the United States led with 681 companies, followed by China with 524, Japan with 185, Germany with 106, and Taiwan with 55 firms on the same list.
Je Kyung-hee, director general for industrial technology convergence policy at the ministry, emphasized the importance of continuing the trend of expanding R and D investments. "Companies have been actively expanding their R and D investment despite difficulties amid intensifying industrial technology competition, and we need to continue this trend to compete against our rival countries," she stated in a press release. She also highlighted the government's commitment to sharing investment risks and strengthening support measures, including streamlining regulations and offering financial assistance to companies.