Korean cultural, knowledge services log over $7 bil. trade deficit in 2024: BOK

Netflix co-CEO Ted Sarandos, second from left, talks with South Korean producers during a meeting on Korean content at a hotel in Seoul, June 22, 2023. Yonhap

Korea logged a deficit of more than $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).

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.

But 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, 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. (Yonhap)