[DigitalToday reporter Jin-ho Lee] South Korea’s technology trade topped $40 billion for the first time. Technology exports and technology imports both hit record highs.

The Ministry of Science and ICT on Thursday announced the results of its 2024 technology trade statistics.

Last year’s technology trade (technology exports plus technology imports) was tallied at $40.57 billion. It rose $1.97 billion, or 5.1 percent, from a year earlier to top $40 billion for the first time. Technology exports rose 4.1 percent to $18.36 billion, while technology imports increased 6.0 percent to $22.21 billion, both the largest on record.

By institution type, technology exports by mid-sized companies rose 11.5 percent from a year earlier to $4.67 billion. Technology imports also increased 19.8 percent to $7.08 billion. As a result, their technology trade expanded 16.4 percent, but the technology trade balance ratio fell 0.05 percentage point from a year earlier.

Small and medium-sized enterprises posted a 7.3 percent rise in technology exports to $2.79 billion. Technology imports fell 0.6 percent to $2.88 billion. As exports rose and imports fell, the technology trade deficit improved to $90 million in 2024 from a $290 million deficit in 2023, shrinking the deficit by 70.4 percent.

Large companies’ technology exports were $10.67 billion, roughly unchanged from a year earlier. Technology imports rose 0.4 percent to $12.03 billion. Their technology trade totalled $22.7 billion, accounting for 56 percent of the overall figure, but the share fell 2.7 percentage points from a year earlier.

By industry, information and communications had the largest technology trade at $13.65 billion, accounting for 33.6 percent of the total. Technology exports in the sector rose 8.8 percent from a year earlier to $7.41 billion, making up 40.4 percent of overall technology exports. Technology imports also rose 9.8 percent to $6.24 billion. The technology trade balance recorded a surplus of $1.18 billion.

The industry with the biggest increase rate in technology exports was the chemical industry. It rose 39.1 percent to $1.28 billion in 2024 from $920 million in 2023. The technology trade balance ratio was highest in the construction industry at 3.24 among all industries.

The United States was the largest technology trading partner. Technology exports to the United States rose 6.0 percent to $5.48 billion. Technology imports increased 10.1 percent to $8.92 billion. As a result, the technology trade deficit with the United States was tallied at $3.44 billion, but the pace of the deficit’s increase slowed from a year earlier.

China, for the second straight year after 2023, had the largest technology trade surplus. Technology exports rose 29.0 percent from a year earlier, while technology imports fell 2.9 percent, expanding the surplus to $2.6 billion. That was up 47.6 percent from a year earlier.

Deputy Prime Minister and science minister Kyung-hoon Bae (배경훈) said, “The technology trade surpassing $40 billion for the first time is an important indicator showing that South Korea’s technology exchanges and cooperation are expanding.” He added, “We will continue to build a virtuous cycle that creates new added value by expanding technology exports.”