Korean refining companies slash back R&D investment

2013_04_gasSouth Korea’s oil refining companies markedly slashed back their spending in R&D to promote the new growth engine amid weaker business performance last year.

R&D spending of SK Innovation, the nation’s No.1 refining company went down 2.8 percent on-year from 153.8 billion won to reach 149.4 billion won last year, according to sources in the industry Tuesday. The share of R&D spending out of sales edged down from 0.22 percent to 0.2 percent. They have scaled up their R&D investment more than 20 percent on average since 2008 (79.1 billion won) in the process of entering into the electric battery car business, but cut back on their investment last year.

GS Caltex also reduced its R&D spending 7.6 percent from 47 billion won in 2011 to 43.4 billion won last year. Considering R&D investment jumped 26 percent from 2010 (37.2 billion won), the declining rate was acute.

For full article, see Maeil Business.

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