Did South Korean Firms Really Invest a Record $61.1 Billion in R&D in 2024?

Seoul, June 12 (NationPress) South Korean enterprises allocated a remarkable 83.6 trillion won (approximately $61.1 billion) towards research and development (R&D) initiatives in the past year, aiming to bolster their competitiveness amid a fierce global technology rivalry, according to government data released on Thursday.

This figure represents a 15.3 percent rise from the 72.5 trillion won invested in R&D during 2023, as reported by the Ministry of Trade, Industry and Energy.

The total encompasses contributions from the top 1,000 companies in South Korea based on R&D expenditures, as detailed by Yonhap news agency. Out of these, 709 companies increased their investments last year, whereas 291 reduced their expenditures.

Leading the pack, tech giant Samsung Electronics Co. invested the most, with 30.2 trillion won allocated to R&D in 2024. Following closely were its competitor, SK hynix Inc. at 4.5 trillion won, automotive leader Hyundai Motor Co. at 4.3 trillion won, and home appliance firm LG Electronics Inc. at 3.4 trillion won.

However, the R&D investments of Korean conglomerates still trail behind those of their global counterparts. The ministry noted that only 40 local companies made it onto the list of the top 2,000 global firms that invested heavily in R&D projects in 2023.

In contrast, the United States boasted 681 companies on that list, along with 524 from China, 185 from Japan, 106 from Germany, and 55 from Taiwan.

“Despite challenges posed by heightened competition in industrial technology, companies are vigorously increasing their R&D investments. We must maintain this momentum to compete with rival nations,” said Je Kyung-hee, director general for industrial technology convergence policy at the ministry, in a press release.

“The government aims to share investment risks with companies and enhance support measures, such as simplifying regulations, creating infrastructure for testing new technologies, and providing financial assistance.”

Meanwhile, South Korea's exports of information and communication technology (ICT) products surged 9.6 percent in May compared to the same month last year, fueled by strong sales of semiconductors and mobile devices, as reported by the ministry.

Outbound shipments of ICT products totaled $20.88 billion last month, an increase from $19.04 billion a year prior. Meanwhile, ICT imports rose 0.5 percent year-on-year to $11.53 billion, resulting in a trade surplus of $9.35 billion in this sector.

Breaking it down by product, semiconductor exports soared 21.2 percent year-on-year to $13.8 billion, spurred by robust demand for artificial intelligence (AI)-related chips.

Exports of computers and communications equipment increased 1.7 percent to $1.2 billion, while mobile phone shipments rose 2.8 percent to $1.05 billion. However, exports of display panels fell 17.5 percent to $1.52 billion, amid mounting uncertainties surrounding changing U.S. tariff policies.