South Korea’s knowledge services trade deficit reached $6.44 billion, or about 8.9 trillion won, in the first half of 2026, according to Bank of Korea statistics released on the 17th. Exports totaled $20.36 billion against imports of $26.8 billion. The shortfall widened by $1 billion from the second half of last year, making it the second-largest half-year deficit since the $7 billion shortfall recorded in the second half of 2010. Intellectual property royalties drove the deterioration, with the deficit expanding to $4.9 billion from $4 billion. Computer and mobile software royalties reached a record $2.84 billion deficit as semiconductor companies paid more for foreign industrial software and spending rose on games and AI services. Multimedia royalties, including overseas OTT subscriptions, shifted from a $290 million surplus to a $40 million deficit. The AI-related classification based on card spending doubled from a year earlier, although its absolute value remains small. Culture and leisure services provided a counterweight, posting a record $720 million surplus as K-pop performances and Korean dramas sold to overseas OTT platforms lifted exports for a second consecutive half-year. Korea also recorded a $2.62 billion surplus with Asia, while it ran deficits of $3.32 billion with North America and $2.25 billion with Europe.