Korea posts record trade surplus for cultural products

By Yi Whan-woo

Korea posted a record trade surplus for cultural products and services in 2022, amid the growing popularity of K-pop plus TV dramas and movies on streaming services.

According to the Bank of Korea (BOK), Monday, the balance of payments for sales of cultural products amounted to $1.7 billion in 2022, up 47.9 percent from a year earlier.

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During the cited period, the balance of payments from abroad for the purchase of music, films and other cultural products increased by 9.7 percent to $467 million.

The difference in cultural exports and imports resulted in a surplus of $1.23 billion ― the highest since 2006 when the relevant data was first compiled.

Korea logged its first trade surplus for cultural products and services in 2013 when the amount was worth $85.5 million.

The surplus was on an upward trajectory from 2014 to 2016 but shrank sharply from 2017 to 2020 due to China's ban on Korean cultural exports in retaliation to a U.S. Terminal High Altitude Area Defense (THAAD) missile shield deployed on the Korean Peninsula. It shrank to $220 million in 2020 from $520 million in 2016.

The surplus then bounced back to $730 million in 2021.

Industry sources said two Korean drama series ― “Squid Game” and “Extraordinary Attorney Woo” on Netflix ― are believed to be key to the international success of Korea's cultural industry in 2022.

The sources speculated the trade surplus for Korea's cultural products and services will rise again this year as Korean dramas and movies are increasingly available on multiple international streaming services, such as Apple TV and Disney+.