2020 Technology Trade Statistics Results
Total Transactions of $29.878 Billion
Recorded Deficit of $4.318 Billion
Decline in Scale and Worsening Balance Due to COVID-19 Trade Slump
Technology Trade Trends in Korea (2007~2020). / Source = Ministry of Science and ICT, 2020 Technology Trade Statistics
[Asia Economy Reporter Kim Bong-su] South Korea recorded a deficit of $4.318 billion in 2020 through technology exports and imports. Additionally, China replaced the United States as South Korea's top technology export destination.
The Ministry of Science and ICT announced the 2020 technology trade statistics on the 21st. The total technology trade volume, including both exports and imports, was $29.878 billion in 2020. Technology exports amounted to $12.78 billion, while technology imports reached $17.098 billion. The technology trade balance ratio (exports/imports) was analyzed at 0.75. Although the technology trade volume slightly decreased compared to 2019, the deficit slightly increased. In 2019, technology trade totaled $31.63 billion, with exports of $13.756 billion and imports of $17.876 billion, resulting in a deficit of $4.121 billion.
By industry, the technology import and export volume in the information and communication industry increased by 29.5% compared to the previous year, reaching $12.669 billion, surpassing the electrical and electronics industry ($9.143 billion, a 29.0% decrease from the previous year) for the first time. The increase in technology imports in the information and communication industry was led by medium-sized and small enterprises. Medium-sized enterprises' technology imports rose significantly from $1.94 billion in 2019 to $2.65 billion in 2020, and small enterprises also increased substantially from $2.73 billion in 2019 to $3.52 billion in 2020. Conversely, the decrease in technology imports in the electrical and electronics industry was largely influenced by large corporations, dropping from $7.84 billion in 2019 to $5.18 billion in 2020. Except for the construction and technology services sectors, all industries recorded technology trade deficits. However, the materials industry showed the most significant improvement in the technology trade balance ratio (from 0.05 to 0.25). This was largely due to a substantial increase (212.6%↑) in technology exports by small and medium-sized enterprises in the materials industry. The total technology export volume in the materials industry more than doubled compared to the previous year (from $13 million to $27 million). Technology imports in the materials industry also fell by more than 60% (from $284 million to $109 million), contributing to the balance improvement.
By institution type, large corporations had a significant impact on the decrease in technology trade. The scale of technology exports was led by large corporations ($5.585 billion, 43.7%), followed by small enterprises ($3.717 billion, 29.1%) and medium-sized enterprises ($3.336 billion, 26.1%). While technology exports by large and medium-sized enterprises decreased compared to the previous year, small enterprises saw a slight increase. Technology imports were led by large corporations ($7.687 billion, 45.0%), small enterprises ($4.73 billion, 27.5%), and medium-sized enterprises ($4.67 billion, 26.9%). Compared to the previous year, technology imports by large corporations decreased by about 24%, whereas imports by medium-sized and small enterprises increased by more than 20%, showing contrasting trends.
By country, it was confirmed that South Korea's top technology export destination changed from the United States to China. With an increase in content exports, technology exports to China rose by 17.3% compared to the previous year, surpassing the United States, which had been the top destination until then. The technology trade volume with China was approximately $3.644 billion, ranking third overall. However, technology exports reached $3.08 billion, surpassing the United States ($2.555 billion). Technology imports from China were only $636 million, resulting in a technology trade surplus of $2.372 billion with China, accounting for more than half of the total surplus. The technology trade volume with the United States was $8.43 billion, with exports of $2.555 billion and imports of $5.876 billion, resulting in a deficit of $3.323 billion. The technology trade volume with Japan, which had conflicts over materials, parts, and equipment, totaled $1.339 billion, with exports of $489 million and imports of $850 million, resulting in a deficit of $361 million.
The Ministry of Science and ICT explained, "Although the scale and balance ratio of South Korea's technology trade (exports + imports) have continuously increased and improved over time, in 2020 the scale decreased and the balance slightly worsened (a 0.02-point decline compared to the previous year). This is presumed to be due to the contraction of the global economy caused by the COVID-19 pandemic." In 2020, global merchandise trade volume decreased by 5.3% compared to the previous year, and real GDP fell by 3.6%. Domestically, merchandise trade volume decreased by 6.3% compared to the previous year, and the trade balance of intellectual property rights, excluding copyrights, saw exports and imports decrease by 21.1% and 8.4%, respectively, compared to the previous year. Detailed information is available on the Ministry of Science and ICT website, and statistics can be found on the National Statistical Portal and the National Science and Technology Knowledge Information Service.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
