Samsung, Hyundai Motor leads R&D spending, lower earnings

Anjali Sharma

GG News Bureau
NEW YORK, 25th June.
 The data showed on Monday that Research and development expenditures by major South Korean companies hit an all-time high last year despite their falling sales amid an economic slowdown.

According to the data from the Ministry of Trade, Industry and Energy and the Korea Institute for Advancement of Technology, South Korea top 1,000 companies made investments of 72.5 trillion won ($52.12 billion) combined in 2023, up 8.7 per cent from a year.

It was the largest ever amount, it showed,media reported.

The increase came despite their sales falling 2.8 per cent on-year to 1,642 trillion won, and the proportion of corporate R&D investment out of sales rose 4.4 per cent in 2023 from the previous year’s 3.9 per cent.

Tech giant Samsung invested the largest amount in R&D last year with 23.9 trillion won, which was up 14.4 per cent on-year and accounted for 32.9 per cent of the total investment by South Korean companies.

Hyundai Motor came next with 3.7 trillion won, which marked 15.6 per cent on-year growth. R&D spending by chip behemoth SK hynix fell 10 per cent year-on-year to 3.6 trillion won.

Home appliances giant LG Electronics increased its R&D expenditure by 10 per cent to 3.3 trillion won, and Samsung Display Co. spent 2.8 trillion won on R&D last year, up 12 per cent on-year, the data stated.

Data showed that Kia Corp. was the fifth-largest R&D investor last year with 2.2 trillion won.

It added that out of 1,000 companies, 171 were large conglomerates and 491 were second-tier mid-sized companies.

The remaining 338 firms were mid- and small-sized companies.

A South Korean ministry official said “The number of mid-sized companies that were among the top 1,000 major R&D investing companies has risen over the past years. The government will extend support for companies to increase investment for innovation.”

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