Halla Group will invest more than 5 percent of the sales of its car parts affiliate Mando Corp. in research and development to raise the company’s global competitiveness, its chairman said Thursday.

Speaking at the opening of the Mando R&D center in Beijing, Chung Mong-won said the investment plan factors in the need for the company to meet global demand for high-quality parts and components.

“Mando spent an equivalent of around 4 percent of its sales on R&D in 2012 and 2013, and will raise this to 4.6 percent this year,” he said. Once the 5 percent investment mark is reached, it will be maintained to ensure adequate funds are allocated to bolstering Mando’s competitiveness, he said.

The top executive did not elaborate on when the investment target will be reached but hinted it won’t be too far into the future. The R&D target is seen as ambitious, topping that of the rivals.

Hyundai Motor and Kia Motors, South Korea’s top two carmakers, spend an equivalent of 2.1 percent and 2.6 percent of their respective sales on R&D. (Yonhap)