South Korean firms invest record $61.1 billion in R&D in 2024

Seoul: South Korean companies spent a record amount of 83.6 trillion won ($61.1 billion) on research and development (R&D) projects last year as part of efforts to enhance their competitiveness amid an intensifying global technology war, government data showed on Thursday.

The latest reading marks a 15.3 percent increase from the 72.5 trillion-won R&D investments made in 2023, according to the Ministry of Trade, Industry and Energy.

The tally is a combination of investments made by the top 1,000 companies here in terms of R&D spending, reports Yonhap news agency. Among the 1,000 companies, 709 increased their spending last year, while 291 reduced their investment.

Tech behemoth Samsung Electronics Co. spent the highest amount of 30.2 trillion won in R&D in 2024, followed by its chipmaking rival SK hynix Inc. at 4.5 trillion won, leading car manufacturer Hyundai Motor Co. at 4.3 trillion won and home appliances maker LG Electronics Inc. at 3.4 trillion won.

Korean conglomerates’ R&D investments, however, still lagged behind those of their global peers, the ministry said, noting that only 40 local companies were on the list of the top 2,000 global companies that spent big on R&D projects in 2023.

The United States had 681 companies on the list, along with 524 Chinese companies, 185 Japanese, 106 German and 55 Taiwanese firms.

“Companies have been actively expanding their R&D investment despite difficulties amid intensifying industrial technology competition, and we need to continue this trend to compete against our rival countries,” Je Kyung-hee, director general for industrial technology convergence policy at the ministry, said in a press release.

“The government will work to share the companies’ risks in making investments and strengthen support measures for them, such as streamlining regulations, building infrastructure for testing new technologies and offering financial help.”

Meanwhile, South Korea’s exports of information and communication technology (ICT) products rose 9.6 percent in May from a year earlier, driven by robust sales of semiconductors and mobile handsets, government data showed.

Outbound shipments of ICT products reached US$20.88 billion last month, up from $19.04 billion a year earlier, the Ministry of Science and ICT said in a press release.

ICT imports rose 0.5 percent on-year to $11.53 billion, resulting in a trade surplus of $9.35 billion in the sector.

By product, semiconductor exports surged 21.2 percent on-year to $13.8 billion, fueled by strong demand for artificial intelligence (AI)-related chips.

Exports of computers and communications equipment rose 1.7 percent to $1.2 billion, while mobile phone shipments increased 2.8 percent to $1.05 billion, the data showed.

However, exports of display panels declined 17.5 percent to $1.52 billion, amid growing uncertainty over shifting U.S. tariff policies.

IANS