More than half of the Korean Inc. unfazed in R&D activities despite pandemic

More than half of big and mid-sized enterprises in South Korea have been expanding research and development activities despite ongoing pandemic crisis and challenging business environment, survey found Tuesday.

According to the survey from Korea Industrial Technology Association (KOITA), 65.0 percent of large companies said they are seeking new R&D projects and the figure was 58.1 percent among mid-sized enterprises, and 44.0 percent among SMEs. The survey was conducted among 479 Korean companies with a research center from July to September.

Chemical companies were most eager in R&D front, accounting for 50.9 percent of the total, followed by electric and electronics companies (50.5 percent) and life science companies (50.0 percent). The survey result suggests that many companies are actively preparing for future growth, with a focus on new technologies and solutions related to carbon neutrality, digital innovation, and response to infectious diseases, KOITA said.

The survey also found that 12.5 percent of large companies have increased their R&D spending. The corresponding figure was 5.7 percent among medium-sized firms and 10.3 percent among SMEs.

Of the 18.7 percent who had cut back in R&D spending, 43.8 percent of large companies blamed decreased profitability for the scale-down.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]