South Korea recorded a knowledge service trade deficit exceeding $6.4 billion in the first half of 2026. This marks the second-largest deficit since statistics began being compiled, with the computer and mobile software deficit reaching an all-time high for a half-year period.
According to the Bank of Korea's preliminary 'Knowledge Service Trade Statistics' released on September 17, the knowledge service trade balance for the first half of the year was a deficit of $6.44 billion. This is the second-largest deficit recorded since the statistics were first published in 2010, following the $7 billion deficit in the second half of 2010.
The knowledge service balance is divided into four main categories: intellectual property royalties, information and communication services, cultural and leisure services, and professional and business services. While information and communication services ($2.4 billion) and cultural and leisure services ($720 million) posted surpluses, deficits were recorded in intellectual property royalties (-$4.9 billion) and professional and business services (-$4.67 billion). Notably, the cultural and leisure services sector achieved its highest surplus ever.
Within intellectual property royalties, the copyright balance saw a deficit of $2.88 billion, widening by $850 million compared to the same period last year. The deficit in computer and mobile software expanded from $2.31 billion in the first half of last year to $2.84 billion this year, marking the largest deficit on record for a half-year period.
The increase in software royalty payments is attributed to expanded investments in semiconductor equipment. Park Seong-gon, head of the Bank of Korea's International Balance of Payments Team, explained, "When importing semiconductor equipment from abroad, costs for software updates necessary for operating the equipment are incurred. Recently, as investments in semiconductor facilities have increased, related royalty payments have also risen."
The multimedia copyright balance shifted to a deficit of $40 million due to a decrease in copyright exports from the information and communication sector and an increase in payments for overseas copyright usage. Fees for overseas online video service (OTT) subscriptions are included in multimedia copyright.
Regionally, Asia recorded a surplus of $2.62 billion, while North America and Europe reported deficits of $3.32 billion and $2.25 billion, respectively.
The knowledge service trade balance for the information and communication technology (ICT) industry showed a surplus of $860 million. Although there were deficits in information services (-$810 million), the game software development and production sector generated a surplus of $1.91 billion.
In the first half of the year, the content industry's knowledge service trade balance also recorded a surplus of $2.14 billion, with the gaming and music industries achieving surpluses of $1.97 billion and $660 million, respectively.
The expansion of generative artificial intelligence (AI) services is emerging as a new variable in the knowledge service trade balance. Subscription fees for overseas AI services are included in the intellectual property royalties under the computer and mobile software category.
Park noted, "Internally compiled data on AI-related items indicate that payment amounts based on card usage have roughly doubled in the first half of this year compared to the same period last year. While the absolute amount is not large, the growth rate is very rapid." He added, "Considering that AI has recently entered the market as a new service, it is likely that AI has made a significant contribution."
Looking ahead, the knowledge service trade balance is expected to continue along a similar deficit trajectory in the second half of the year. Park stated, "The fundamental deficit trend is likely to persist, although K-content presents an upside factor."
* This article has been translated by AI.
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