S. Korea Reports USD4.53B Knowledge Service Trade Deficit

(MENAFN) South Korea recorded a trade deficit of 4.53 billion U.S. dollars in knowledge services during the first half of 2025, according to data released by the Bank of Korea (BOK) on Wednesday.

This figure marks a significant increase from the 3.76 billion dollar deficit recorded in the second half of 2024. Knowledge services, as defined by the BOK, encompass four key sectors: intellectual property royalties, information and communication services, cultural and leisure services, and professional and business services.

The largest deficits were seen in the intellectual property royalties, which amounted to 2.45 billion dollars, and professional and business services, which posted a deficit of 4.48 billion dollars for the January-June period. On the positive side, trade in information and communication services generated a surplus of 1.96 billion dollars, while cultural and leisure services added a smaller surplus of 440 million dollars.

In terms of industry performance, the information and communication sector was a notable contributor, posting a surplus of 1.64 billion dollars in the first half of the year. However, South Korea's manufacturing sector and digital intermediary platforms faced significant challenges, with deficits of 2.47 billion dollars and 2.20 billion dollars, respectively.

Geographically, South Korea saw a positive balance of 3.57 billion dollars in knowledge service trade with Asia during the period, while its trade with North America and Europe resulted in deficits of 3.77 billion dollars and 2.18 billion dollars, respectively.

The data underscores the growing challenges South Korea faces in balancing its knowledge service trade, with widening deficits in key areas despite gains in certain sectors.

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