The Year Before Last, Technology Trade Reached $34.9 Billion 'All-Time High'... Trade Deficit Increased

Ministry of Science and ICT Announces 2022 Technology Trade Statistics
Both Technology Exports and Imports Reach Record Highs

In 2022, South Korea's technology trade volume reached a record high of 34.85 billion USD. However, as technology imports increased more than exports, the trade deficit expanded by 17.1% from the previous year to 4.417 billion USD.

According to the "2022 Technology Trade Statistics" released by the Ministry of Science and ICT on the 26th, South Korea's technology exports in 2022 increased by 300 million USD from the previous year to 15.22 billion USD, and technology imports rose by 940 million USD to 19.63 billion USD, both marking all-time highs. However, the technology trade balance ratio (exports/imports) slightly declined from 0.80 in 2021 to 0.78.

Export and import cargo are piled up at Busan Port Sinsundae Pier.
Photo by Jinhyung Kang aymsdream@

The country with the most active technology trade with South Korea is the United States. With technology exports of 4.48 billion USD and imports of 6.82 billion USD, the total technology trade volume with the U.S. reached a record 11.3 billion USD. Although technology imports decreased by 170 million USD compared to the previous year, technology exports increased by 1.28 billion USD, driven by growth in the electrical and electronics (electronic components) and information and communications (gaming) industries.

In 2022, South Korea's technology trade balance with the U.S. recorded a deficit of 2.35 billion USD, the largest deficit among trading partners. However, the deficit amount decreased by about 40% compared to the previous year, and the Ministry of Science and ICT explained that it has shown gradual improvement over the past five years.

Trends of South Korea's Technology Trade from 2009 to 2022
[Image provided by the Ministry of Science and ICT]

Among trading partners, China recorded the largest technology trade surplus. In 2022, South Korea's technology trade surplus with China was 810 million USD. However, the surplus decreased by about 64% compared to the previous year and has shown a declining trend over the past five years. Technology exports fell by 17.7% year-on-year to 2.6 billion USD due to a decrease in exports from companies in the gaming sector. On the other hand, technology imports increased by 77.6% year-on-year to 1.79 billion USD, driven by increased imports of semiconductor technologies.

The Ministry of Science and ICT stated, "We have selected 12 key areas, including semiconductors, AI, and advanced mobility, as national strategic technologies that must be secured in the technology hegemony competition. We will actively support the stable acquisition and protection of core technologies and the strengthening of global competitiveness."

This content was produced with the assistance of AI translation services.