Last year, research and development (R&D) investment by 10 major domestic food companies declined. It appears to be due to continued headwinds such as a sluggish domestic market and a strong dollar-won exchange rate.
According to the Financial Supervisory Service's electronic disclosure system on Apr. 8, the total 2025 R&D investment by 10 major food corporations with sales of 3 trillion won or more (CJ CheilJedang, Dongwon F&B, Daesang, Lotte Wellfood, Lotte Chilsung Beverage, OTOKI, Nongshim, Samlip, Pulmuone, Orion) was 412 billion won, down 2.1% from the previous year (420.8 billion won). By company, CJ CheilJedang's R&D investment as a share of sales fell for three straight years, from 1.45% in 2023 to 1.34% in 2024 and 1.29% last year. This ratio is the highest in the industry. Last year's total research and development expenses (excluding government subsidies below) were 194.5 billion won.
Lotte Chilsung Beverage declined from 1.01% in 2023 to 0.74% in 2024 and 0.68% in 2025, recording 26.8 billion won last year. Dongwon F&B (general foods institutional sector) also rebounded to 0.48% in 2024 from 0.35% in 2023, then edged down to 0.44% in 2025, posting 9.5 billion won last year.
Pulmuone fell from 1.00% in 2023 to around 0.9% in 2024 and last year (30.7 billion won). Nongshim was 0.8%→0.9%→0.8% over the same period, and OTOKI was 0.63%→0.70%→0.65%, with little change. Last year's research and development expenses were 28.3 billion won and 19.3 billion won, respectively.
Lotte Wellfood showed a modest increase and then a plateau at 0.6%→0.7%→0.7%, recording 29.6 billion won in research and development expenses last year. SPC Samlip rose slightly from 0.27%→0.28%→0.30%, but still remained at about 0.3% (10.1 billion won). Orion increased to 0.49%→0.52%→0.54%. Last year's research and development expenses were 6.2 billion won. Daesang also steadily rose from 1.00% in 2023 to 1.09% in 2024 and 1.29% in 2025, recording 57 billion won last year.
Within the food industry, views are split. Some first interpret the trend as corporations focusing on defending profitability amid a domestic slump and rising expense burdens. With raw materials price increases, logistics expense burdens, and exchange-rate volatility persisting, companies are investing in equipment efficiency and automation while taking a relatively cautious approach to long-term research and development investment.
A food industry official said, "Recently, other sectors are also reducing R&D investment expenses, but because the food industry is particularly centered on the domestic market, there are many products aimed at short-lived popularity, making it difficult to increase long-term research and development investment expenses." Another official said, "It is true that recently, as the industry overall has slumped and profitability has deteriorated, there has been selection and concentration to secure cash liquidity and manage financial soundness, leading to a slight decrease in research and development expense investment."
On the other hand, some say it is hard to judge the actual level of investment by simple figures alone. They explain that in food corporations, research and development often takes place inside factories alongside production, so a significant portion of expenses are not recorded as R&D in accounting.
In practice, while some in the food industry operate separate R&D centers to conduct research and development, many run tests by using existing production lines during new product development. In this process, the boundary between production and experimental equipment is often blurry. Research and development expenses reflect only direct expenses such as labor or materials and supplies testing costs, while costs for plant expansion, automation equipment, and building quality control systems are excluded.
In the pharmaceutical and semiconductor industries, laboratories and production facilities are clearly separated, so a large portion of research equipment investment is recognized as R&D expense. In contrast, because research and production in the food industry occur simultaneously in the same space, statistical distortions can appear.
A food industry official said, "R&D investment expenses mainly consist of materials and supplies costs and labor. Beyond the expense of operating a separate R&D center, costs投入 for pilot production and testing are not included," adding, "Costs to build equipment needed for mass production are also not included."
However, there are concerns that as K-food's influence expands in the global market, relying on brand- and marketing-driven growth without technology-based investment could lead to limits.
Professor Lee Jong-u of Namseoul University's Department of Distribution and Marketing said, "If you focus only on domestic demand to target only domestic consumers, there is a lot of existing data, but to expand overseas you need active research and development," adding, "As the domestic market has recently been in a slump, overseas expansion is inevitable for the food industry to survive. Without research and development investment, it may hit a growth ceiling."