Over the past 10 years, South Korea's technological trade volume has grown nearly twofold from $18.9 billion (27.1914 trillion won) to $38.6 billion (55.5338 trillion won). In particular, the scale of technology exports recorded an all-time high of $17.648 billion (29.3937 billion won), up 16.0% from the previous year in 2023.
The Ministry of Science and ICT announced the results of the '2023 Technological Trade Statistics' that contain this information. This study was conducted by the Korea Industrial Technology Association.
In 2023, South Korea's technological trade volume (exports + imports) reached a record high of $38.6 billion, an increase of $3.747 billion (10.8%) compared to the previous year. The technological trade balance ratio (exports/imports) rose by 0.06 percentage points from the previous year (0.78) to 0.84.
Technology exports reached $17.648 billion, a 16.0% increase from the previous year, while technology imports grew by 6.7% to $20.952 billion, both recording the highest figures ever.
Looking at the characteristics by industry, the technological trade volume in the electric and electronics industry accounted for the largest share at $14.375 billion (37.2%), surpassing the information and communications industry, which was ranked first the previous year at $12.491 billion (32.4%). The machinery industry saw a 23.4% increase in technological trade volume. Though the construction industry was small in scale, the technological trade balance ratio was the highest at 4.56.
In the electric and electronics industry, technology exports increased by 28.9% to $5.283 billion (29.9%), accounting for about half (48.8%) of the increase in technology exports. Technology imports rose to $9.09 billion, an increase of 10.1%. Major corporations were analyzed as the main cause of the increase in technology exports and imports in the electric and electronics sector.
The information and communications industry recorded the largest surplus, with technology exports increasing by 3.2% to $6.81 billion (38.6%). However, technology imports decreased by 4.4% to $5.68 billion, resulting in a technological trade surplus of $1.132 billion. The decline in technology imports was analyzed as being primarily due to a decrease in technology imports from small and medium-sized enterprises, down 37.5%.
By type of institution, large corporations showed a larger increase in technology exports (23.9%) compared to technology imports (16.3%), resulting in an improved trade balance. Small and medium-sized enterprises saw an increase in technology exports (18.7%) but a decrease in technology imports (23.7%), reducing their deficit. In contrast, mid-sized enterprises experienced a decrease in technology exports (2.3%) while technology imports increased (8.6%).
By country, the United States was South Korea's largest technology export and import partner, while China was shown to have the largest technological trade surplus.
In the United States, the increase in technology exports ($690 million, 15.4%) was overshadowed by the larger increase in technology imports ($1.28 billion, 18.7%), leading to a slight increase in the technological trade deficit. The trade deficit with the United States has been decreasing since 2016 but has shown fluctuations since 2021.
China surpassed Vietnam, which had the largest surplus the previous year, becoming the country with the largest technological trade surplus in 2023. Technology exports increased (7.0%) while technology imports decreased (42.7%), resulting in a rise in the technological trade surplus. This was largely attributed to a decrease in technology imports in China's electric and electronics industry.
The Ministry of Science and ICT noted that this technological trade statistics report shows South Korea's gradual advancement as a technological powerhouse amidst global competition for technological supremacy.
Minister Yoo Sang-im stated, "The growth trend in technological trade volume indicates that South Korea's global technological competitiveness is continuously growing."
He continued, "We will actively support the establishment of global cooperation networks with various countries, along with securing core technologies such as national strategic technologies, to facilitate technology transfers and commercialization, thereby building a growth ecosystem based on R&D results."