S. Korea logs deficit in cultural, knowledge services trade in H1: BOK

SEOUL, Sept. 17 (Yonhap) -- Despite a trade surplus in the K-pop and other cultural content sectors, South Korea logged a deficit in cultural and knowledge services trade in the first half of 2025, central bank data showed Wednesday.

The trade deficit in cultural, information and knowledge services reached $4.53 billion in the January-June period, widening from $3.76 billion of deficit in the second half of 2024, according to preliminary data from the Bank of Korea (BOK).

The services here cover the four areas of intellectual property royalties; information and communication services; cultural and leisure services; and professional and business services.

"The wider deficit came as domestic companies placed more specialized research and development (R&D) orders with foreign firms, while app purchases through app stores and the use of overseas over-the-top (OTT) services have grown," a BOK official said.

In detail, information and communication services reported a surplus of $1.96 billion during the first half, and cultural and leisure services, including K-pop, dramas and other content, recorded a surplus of $440 million.

But the country saw a deficit of $2.45 billion in intellectual property royalties and a $4.48 billion deficit in the professional and business services sector.

By industry, the information and communications sector posted a surplus of $1.64 billion, while the manufacturing sector and digital intermediary platforms recorded a deficit of $2.47 billion and $2.2 billion, respectively.

By region, South Korea logged a trade surplus of $3.57 billion in the Asian market, while it reported a $3.77 billion deficit in trade with North America and a $2.18 billion deficit in Europe, the data showed.

graceoh@yna.co.kr
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