R&D investment sentiment hits record low on economic, political uncertainties
Published: 13 Jan. 2025, 18:41
This graph, provided by the Korea Industrial Technology Association, shows Korean the fall in companies' R&D investment sentiment to the lowest-ever number of 79.6 in December 2024 amid political and economic uncertainties.
The investment sentiment of Korean companies on research and development (R&D) projects dipped to the lowest level ever last month, data showed Monday, amid deepening political chaos and global economic uncertainties.
The R&D survey index (RSI) for the investments of 500 local companies with research institutes stood at 79.6 in December, falling sharply from the 94.6 reading the previous month, according to data from the Korea Industrial Technology Association (KOITA).
The December reading marks the lowest since KOITA began conducting the survey in 2013, as well as the first time ever the figure dropped below 90.
A reading below 100 means companies plan to invest less in R&D, while a figure above the mark means the opposite.
KOITA said the sharp contraction in R&D investment sentiment is attributable to heightened uncertainties surrounding the economy and the persisting political turmoil sparked by now-impeached President Yoon Suk Yeol's botched martial law declaration late last year.
In detail, the RSI of conglomerates dipped 17.3 points to 80.3 in December from a month earlier.
The corresponding figure for medium-sized enterprises came to 85.6, down 10.7 points on month, and that of the small businesses fell 14.2 points to 73.8 over the cited period.
By sector, the construction industry showed the sharpest drop of 30.9 points to 65.5 over the period.
The RSI of the service and ICT industries retreated 27 points and 28 points to 74 and 70.5, respectively.
The investment sentiment of the chemical industry also declined 21.5 points to 71.6.
Yonhap
with the Korea JoongAng Daily
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