Big companies in South Korea ramped up their investments in research and development (R&D) activities in 2023, despite facing decreased earnings, as per data from corporate data tracker CEO Score.
According to a survey of 224 firms, their collective R&D investments surged by 9.4 percent to 73.42 trillion won ($54 billion) last year from 67.14 trillion won in the previous year.
Despite experiencing declines in sales and operating profit due to an economic slowdown, these companies adhered to their planned R&D spending to fuel future growth, as reported by Yonhap news agency.
Samsung Electronics emerged as the leader in terms of R&D investment value, with a spending of 28.35 trillion won, marking a 14 percent increase from the previous year.
Among the surveyed companies were South Korea's top 10 conglomerates, including LG Electronics, SK hynix, Hyundai Motor, LG Chem, Hyundai Mobis, and Kakao. These conglomerates collectively contributed over 70 percent of the total R&D investments reported by the surveyed firms, according to CEO Score.
The increase in R&D investments despite economic challenges underscores these companies' commitment to innovation and long-term competitiveness in the global market.