Day: June 23, 2024

Research and development (R and D) expenditures by major South Korean companies hit an all-time high last year despite their falling sales amid an economic slowdown, data showed Sunday.

The country’s top 1,000 companies made investments of 72.5 trillion won (US$52.12 billion) combined in 2023, up 8.7 percent from a year earlier, according to the data from the Ministry of Trade, Industry and Energy and the Korea Institute for Advancement of Technology.

It was the largest ever amount, it showed.

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

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

Leading carmaker Hyundai Motor Co. came next with 3.7 trillion won, which marke
d 15.6 percent on-year growth. R and D spending by chip behemoth SK hynix Inc. fell 10 percent on-year to 3.6 trillion won.

Home appliances giant LG Electronics Inc. increased its R and D expenditure by 10 percent to 3.3 trillion won, and Samsung Display Co. spent 2.8 trillion won on R and D last year, up 12 percent on-year.

Kia Corp. was the fifth-largest R and D investor last year with 2.2 trillion won, the data showed.

Of the 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.

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

Source: Yonhap News Agency

South Korea needs to consider various options to tackle North Korea’s nuclear issue, including Seoul’s arming itself with its own nuclear weapons, a state-run think tank said in a report Sunday, amid heightened concerns raised by Russian President Vladimir Putin’s latest visit to Pyongyang.

The Institute for National Security Strategy (INSS) made the suggestion amid growing concerns that Washington’s extended deterrence is not enough to deal with North Korea’s evolving nuclear threats, now that Pyongyang and Moscow signed a treaty that calls for offering military assistance without delay if either comes under attack.

“Putin indirectly recognized North Korea’s possession of nuclear weapons in a way that bluntly flouts the U.N. Security Council’s sanctions against Pyongyang,” the INSS said. “North Korea is expected to strengthen its push to win recognitions from China and other countries that it is a nuclear state.”

North Korean leader Kim Jong-un and Putin signed a treaty on comprehensive strategic partner
ship to expand cooperation in military and other fields after summit talks on Wednesday. The treaty could be seen as warranting automatic military intervention in the event of aggression on either country.

The INSS voiced concerns that the United States may seek a freeze in North Korea’s nuclear program or nuclear disarmament talks with Pyongyang if it resumes diplomacy with North Korea after the presidential election in November.

“Along with consistent efforts to strengthen Washington’s extended deterrence, the South Korean government should consider various options, ranging from the redeployment of tactical nuclear weapons, NATO-style nuclear sharing and South Korea’s nuclear armament to Seoul’s efforts to build potential nuclear capabilities,” it said.

Extended deterrence refers to the U.S. commitment to using the full-range of its military capabilities, including nuclear, to defend an ally.

Source: Yonhap News Agency

Kim Ha-seong of the San Diego Padres has reached double digits in home runs for the third straight season.

Kim smacked his 10th home run of the season against the Milwaukee Brewers at Petco Park in San Diego on Saturday (local time).

With the Padres up 3-0 in the bottom of the fourth inning, Kim hit a solo shot off Brewers starter Carlos Rodriguez. He sent an 83.2-mph slider into the seats in left field. The ball left Kim’s bat at 97.5 mph and traveled 374 feet.

Kim became the second South Korean player in the majors to hit at least 10 home runs in three straight seasons, joining former big leaguer Choo Shin-soo (2008-2010, 2012-2015, and 2017-2019).

With 46 career home runs, Kim is now tied for third place all time among South Korean players with former Pittsburgh Pirates infielder Kang Jung-ho. Veteran Choi Ji-man is in second place with 67 homers, and Choo owns the record with 218.

Kim had 11 homers in 2022, his second big league season, and then launched 17 homers last year.

Kim added a single in t
he seventh inning and finished the day 2-for-3 with two runs and one RBI. He is batting .220 with an on-base plus slugging (OPS) of .721.

The homer was Kim’s first since June 8. He is batting .231 this month with an .800 OPS.

The Padres won 6-4 to stretch their winning streak to four games.

Source: Yonhap News Agency

South Korea, the United States and Japan plan to hold their first industry ministerial meeting in Washington this week to discuss ways of strengthening three-way cooperation on supply chains and economic security, Seoul’s industry ministry said Sunday.

South Korean Industry Minister Ahn Duk-geun, U.S. Commerce Secretary Gina Raimondo and Japanese Trade Minister Ken Saito are scheduled to hold the industry ministerial talks in Washington on Wednesday, the first of its kind, according to the Ministry of Trade, Industry and Energy.

The envisioned meeting comes after President Yoon Suk Yeol, U.S. President Joe Biden and Japanese Prime Minister Fumio Kishida agreed to launch a new commerce and industry ministers’ meeting for annual consultations during a summit at Camp David in Maryland in August last year.

“The three sides plan to discuss ways of enhancing economic security in the region and industrial cooperation. They will also launch a trilateral business meeting platform to be led by economic organization
s of the three nations that aims to enhance cooperation among private sectors,” the ministry said in a release.

During his planned visit to the U.S., Ahn will also hold one-on-one talks with Raimondo and other senior industry and energy-related officials there to discuss how to work more closely on supply chains of major industry materials and items, as well as on such advanced industries as semiconductor and bio sectors, it added.

Source: Yonhap News Agency

South Korea’s car exports are forecast to reach a record high this year, driven by solid demand for eco-friendly models and sport utility vehicles, an industry association said Sunday.

According to the Korea Automobile and Mobility Association (KAMA), the country’s car exports are projected to grow 5.4 percent on-year to US$74.7 billion in 2024, an all-time high.

The amount is expected to come to $98 billion if taken together with expected auto component sales in the global market.

During the first five months of this year, car exports rose 4.7 percent on-year to $30.8 billion, a record figure for any cited period ever, government data showed.

“Car exports are expected to enjoy solid growth in the second half, led by strong demand from the North American market and the rising popularity of domestic makers’ SUVs and hybrid models,” the report read.

KAMA chief Kang Nam-hoon called for efforts to maintain the stable labor-management relationship, the introduction of flexible working systems and policy supp
ort to ensure stable shipments amid geopolitical instability to continue the export growth momentum.

But domestic sales of cars are expected to fall 5.9 percent on-year to 1.65 million units in 2024 on weak domestic demand and a high base effect.

Domestic production is forecast to inch down 0.1 percent to 4.24 million this year, according to the report.

Source: Yonhap News Agency

National security adviser Chang Ho-jin said Sunday that South Korea will not be bound by anything with regard to its assistance to Ukraine if Russia provides North Korea with precision weapons.

Director of National Security Chang made the remark during a TV appearance, underscoring the point that Seoul’s decision on whether to provide weapons to Ukraine depends on how Russia’s military cooperation with North Korea goes.

“I would like to emphasize that it all depends on what Russia will do,” Chang said on KBS TV. “Will there be any line remaining for us if Russia gives precision weapons to North Korea?”

Chang’s remark means South Korea could provide lethal weapons to Ukraine if Russia crosses the line.

South Korea has said it will reconsider its position of not supplying weapons to Ukraine after Russian President Vladimir Putin and North Korean leader Kim Jong-un signed a comprehensive strategic partnership treaty that commits each other to mutual defense and military technology cooperation.

Putin has si
nce warned Seoul’s weapons provision to Ukraine would be “very big mistake.”

Chang said not only South Korea, but also Russia should make efforts to improve bilateral relations.

“If they want to restore and move Korea-Russia relations forward, I would like to reiterate that the Russian side should think carefully,” he said.

Source: Yonhap News Agency