Seoul: South Korea logged a deficit of more than US$7 billion in cultural and knowledge services trade last year, despite a trade surplus in the K-pop and cultural content sectors, the central bank said Wednesday. The trade deficit in cultural, information, and knowledge services amounted to $7.26 billion in 2024, according to data compiled by the Bank of Korea (BOK).
According to Yonhap News Agency, this was the first time the BOK compiled and released separate trade data on this sector, which covers four areas: intellectual property royalties; information and communication services; cultural and leisure services; and professional and business services. In detail, information and communication services reported a surplus of $2.76 billion in 2024, while cultural and leisure services, including K-pop, dramas, and other content, recorded a surplus of $870 million.
However, the country saw a deficit of $3.34 billion in intellectual property royalties and a $7.55 billion deficit in the professional and business services sector. By region, South Korea logged a trade surplus of $5.11 billion in the Asian market, while it reported a $5.73 billion deficit in trade with North America and a $2.85 billion deficit in Europe.
“Despite the deficit, the amount has been reduced at a rapid pace in recent years, down from $12.77 billion in 2010. Exports in the knowledge service sectors have shown double-digit growth in recent years,” BOK official Kim Sung-jun said.