South Korea's research and development (R&D) spending is expected to reach a record 52.5 trillion won (US$46.5 billion) this year, mainly due to more money being invested by the private sector, a government report showed Tuesday.

   The report by the Ministry of Education, Science and Technology showed that investments by both the government and private businesses is forecast to rise 11.2 percent compared to 2010. If R&D spending takes place as planned, this year will mark the first time that the total has exceeded the 50 trillion won mark.

   "The increase reflects solid economic gains of 4-5 percent being predicted for this year following on the heels of 6.1 growth tallied for 2010," the ministry said.

   The estimate added that spending by private companies and laboratories could jump 12.5 percent on-year to 37.6 trillion won, which is the highest annual gain tallied in the past four years.

   Government outlays will move up a more modest 8.7 percent to 14.9 trillion won with the average annual gains for the 2008-2011 period to reach 10.3 percent.

   The state R&D outlay for the new year is equal to 28.3 percent of the total, which is higher than the percentage for Japan, but smaller than numbers for the United States, Britain and France.

   Of the total to be spent, the private sector is expected to use up 73.9 percent, or 38.8 trillion won, in R&D funds, followed by state-run laboratories and academia that will likely be given 8.1 trillion won and 5.5 trillion won, respectively, to carry out various research projects.

Source:  Yonhap News (March 1, 2011)