South Korea R&D Spending on the Rise

South Korea spent $16.5 billion in research and development in 2003, up 10.1 percent from 2002. The major conglomerates (chaebol) accounted for three-fourths of this R&D investment. This trend will continue since the major conglomerates have aggressive plans to continue to invest in sectors they feel are vital for their future growth.

The Ministry of Science and Technology recently noted that South Korea’s research spending ballooned by a double digit thanks to brisk investment from private sectors.

Companies increased R&D spending by 11.8 percent to $12.4 billion last year, with the conglomerates accounting for more than three-fourths of the investment at more than $9 billion.

I see this investment by major conglomerates (including Hyundai Automotive Group, Samsung, and LG) as crucial for these leading Korean-based companies' global growth. Indicative of this strategy is Hyundai Automotive construction of multiple R&D sites both domestically and internationally. In America, Hyundai Automotive Group has R&D facilities in California and Michigan.