(Photo = Yonhap news)

 

[Alpha Biz=(Chicago) Reporter Paul Lee] Naver and Kakao, Korea's two largest Internet companies, invested 3.2 trillion won in R & D last year.

This is interpreted as an attempt to strengthen platform competitiveness by securing future technologies at a time when ultra-large artificial intelligence (AI) technologies such as large language models (LLM) are pouring out.

According to the Financial Supervisory Service's electronic disclosure system on the 21st, Naver and Kakao's annual R & D spending last year was 1.9926 trillion won and 1.2235 trillion won, respectively. Research and development costs of both companies increased by 10.1% and 19.8%, respectively, compared to the previous year. Naver has maintained the ratio of R&D expenses to sales of 20%, but the ratio is decreasing. R&D expenses accounted for 20.6% of last year's annual consolidated sales (9.67 trillion won), down from 24.3% in 2021 and 22.0% in 2022.

Through previous investments, Naver is strengthening its capabilities in the AI field.

Kakao also accounted for 16.2% of R&D expenses in sales (7.557 trillion won) last year. Following 12.9% in 2021 and 15.0% in 2022, R&D costs are gradually increasing in sales.

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