Rising dependence on overseas technology

Korea has grown increasingly reliant on foreign technology since 1995, driving up technology-related deficit. The foreign technology dependency ratio shot up 22.7% in 1998, making it almost three times that of developed countries such as the U.S., Japan, Germany, and France.

According to the Bank of Korea, the technology-related deficit from 1995 to 1999 was US$ 11.013 billion, indicating that Korea paid US$ 11.731 billion to import high technology, while technology exports only amounted to US$ 718 million.

From 1980-1984, the technology-related balance was in the red at US$ 620 million, but surged in the 90s, particularly after 1995.

The mounting deficit indicates that Korea is far behind advanced industrial countries in technological terms, with the exception of certain products such as semiconductors.