S. Korea`s overseas royalty payments rise this year

SEOUL, July 1 (Yonhap) -- South Korean companies' payments over the use of
foreign patents and intellectual property rights topped the US$3 billion mark in
the January-May period amid the economic recovery, central bank data showed
Thursday.
South Korea's overseas payments of royalties and license fees reached $3.17
billion in the first five months of the year, up 50.1 percent from the same
period last year, according to the Bank of Korea (BOK).
In the cited period, local companies earned $1.29 billion from royalties paid by
foreign firms, resulting in the country's royalty deficit of $1.88 billion, it
added.
The balance tracks the nation's cross-border expenses and income for using patent
and copy rights as well as brand royalties.
The BOK said, as a rise in overseas patent payments resulted from the economic
rebound, the deficit cannot be seen as solely negative.
"Most companies pay overseas royalties in tandem with their sales. An increase in
such payments comes as the reviving economy is making corporate earnings rise,
pushing up the sales," a BOK official said.
The South Korean economy grew 2.1 percent on-quarter in the first quarter on
strong consumer spending and exports. The government revised up its 2010 economic
growth forecast to 5.8 percent from an earlier estimate of 5 percent.
sooyeon@yna.co.kr
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