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Korea Spends 3.7% of GDP on R&D

According to Yonhap News,

(SEOUL = Yonhap News) A research report indicates that Korea’s expenditure on research and development (R&D) compared to its gross domestic product (GDP) was the highest among key nations around the world.

In its “Global Trade Forecast Report” published on April 3, the British investment bank HSBC said that Korea spent about 3.7 percent of its GDP on R&D in 2011. The country’s expenditure was ranked the highest among 25 key trading nations around the world.

The report also said that Korea, propelled by its efforts to enhance its R&D capability, has played a significant role in the production of high value-added components and has reached the highest stage of the value chain.

“By focusing on R&D, Korea has grown into a vigorous and innovative production hub,” said Martin Tricaud, President and CEO of HSBC Korea. “Investment in R&D also enabled the country to strengthen its competitiveness to survive in the global market.”

The HSBC Trade Confidence Index for the second half of 2013 was 113, up by one point from the first half. The HSBC Trade Confidence Index survey is conducted to gauge sentiment and expectations on the short-term trade activities of trading businesses around the world. A reading above 100 indicates a positive outlook; below 100 indicates a negative forecast.

Major advanced economies, including the United States and the United Kingdom, were the main drivers of the increase in optimism on short-term trade, while the trade confidence of emerging economies, including South America and the Middle East, has slightly dropped.

“Although emerging economies are less optimistic about the short-term trade outlook, they will continue to grow in the long term,” said James Emmett, HSBC Global Head of Trade and Receivable Finance.

Meanwhile, the report forecast that Korea’s exports will grow at an average rate of 8 percent per annum by 2030. It also predicted that China and India will record 11 percent and 12 percent increases in exports, respectively, during the same period.

Copyrights Yonhap News. All Rights Reserved.

Source Text

Source: Yonhap News (April. 3, 2014)

** This article was translated from the Korean.
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