The Strategist

South Korean companies boost R&D spending in 2019

12/25/2019 - 07:52

The largest South Korean players increased funding for R&D, despite a decrease in revenue.

The total research and development expenses of the 500 largest South Korean companies in terms of sales in the first three quarters of the year amounted to 39.3 trillion won ($ 33.8 billion). This is 11.3% more than a year earlier, according to Yonhap, citing a study by CEO Score.

The study suggests that in January-September, these companies received 1265.3 trillion won in total revenue, which is 0.8% less than the same period last year. Nevertheless, their total R&D expenses amounted to 3.13% of sales, which is 0.34% more than a year earlier.

The first place among South Korean companies in the ratio of R&D expenses to sales was taken by the country's leading Internet company Naver Corp. with an indicator of 25.96%.

The pharmaceutical giant Celltrion, which ratio of R&D to sales was the biggest two years ago, has moved up higher to the second place (25.63% ratio).

Samsung Electronics, the largest manufacturer of smartphones and memory chips in the world, turned out to be the best R&D sponsor in terms of expenses with 15.29 trl KRW, however, the ratio put the giant in the 16th place in the rating.