The Bank of Korea, Trade Balance of Intellectual Property Rights in the First Half of 2022
[Asia Economy Reporter Seo So-jung] With the Korean dramas and K-pop groups such as BTS and Blackpink creating a sensation, the intellectual property trade balance recorded a surplus of $370 million in the first half of this year, marking the largest surplus on a half-year basis ever.
According to the "2022 First Half Intellectual Property Trade Balance (Provisional)" released by the Bank of Korea on the 23rd, the trade balance for cultural and artistic copyrights in the first half of this year was recorded as a surplus of $380 million, showing the second-largest surplus on a half-year basis.
Im In-hyuk, head of the International Balance of Payments Team at the Bank of Korea's Economic Statistics Bureau, explained, "The intellectual property trade balance recorded the largest surplus ever as the deficit in industrial property rights narrowed and cultural and artistic copyrights maintained a solid surplus trend due to the strong export performance of K-content."
By type, industrial property rights recorded a deficit of -$370 million, while copyrights recorded a surplus of $870 million.
In particular, the music and video trade balance posted a surplus of $400 million, ranking second in surplus size on a half-year basis. This was influenced by the continued Korean Wave, which increased exports of music and video copyrights by domestic entertainment companies such as BTS.
Im said, "Mainly, music and video exports such as Blackpink were shipped to Japan, and exports in the music and video sectors of Korean Wave content also improved to other countries."
As local subsidiaries of domestic large corporations increased trademark exports, the trademark trade balance recorded a deficit of $420 million, narrowing the deficit compared to the same period last year.
By institution type, the trade balance of domestic large corporations recorded a surplus of $2.4 billion, the largest surplus on a half-year basis ever. This was due to increased exports of patents, utility models, and trademarks. Domestic small and medium-sized enterprises (SMEs) and mid-sized companies recorded a surplus of $430 million as exports of computer programs by domestic game developers increased. Foreign-invested SMEs recorded a deficit of $2.45 billion, with an expanded deficit compared to the same period last year, due to increased imports of computer programs centered on IT companies.
By industry, the electrical and electronic product manufacturing sector recorded a surplus of $800 million, the largest on a half-year basis, while the automobile and trailer sector recorded a surplus of $620 million, with a reduced surplus compared to the same period last year. The information and communication sector recorded a deficit of $50 million, but the deficit narrowed compared to the same period last year due to increased exports of computer programs by domestic game developers.
By trading partner country, the United States recorded a deficit of $560 million, the smallest deficit on a half-year basis, while China ($1.09 billion) and Vietnam ($1.12 billion) recorded surpluses.
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