TAIPEI (Taiwan News) — Taiwan’s trade deficit with South Korea reached a record NT$1.16 trillion (US$37 billion) last year, making South Korea its largest deficit partner, according to the International Trade Administration.
Last year, Taiwan’s exports to South Korea totaled NT$837.9 billion, up 28.03% year-on-year, while imports from South Korea reached NT$1.94 trillion. High-bandwidth memory imports from South Korea increased more than 80% compared with 2024, becoming the main driver of the trade deficit, per CNA.
This high-performance memory was developed by Samsung Electronics, AMD, and SK Hynix. It uses 3D-stacked technology and through-silicon vias to provide wide data paths and is used in GPUs, accelerators, networking devices, and AI-powered systems.
Taiwan’s exports to South Korea are dominated by integrated circuits, printed circuit boards, and ICT products. Strong demand from South Korea’s expanding data centers helped ICT exports increase more than 80% year-on-year, making them one of the fastest-growing categories in Taiwan’s trade with the country.
The administration highlighted that while the two countries compete in areas such as memory, panels, and mobile phones, they are highly complementary in the AI supply chain, including semiconductor foundry services and high-bandwidth memory.
Taiwan has historically run its largest trade deficits with Japan, mainly due to imports of electronics and chemicals. Last year, the trade deficit with Japan reached NT$779 billion, making it Taiwan’s second-largest deficit partner.
The administration added that Taiwan’s trade deficit with South Korea continues to grow, reaching NT$311.41 billion in 2023 and rising to NT$699.06 billion in 2024, mainly driven by high-bandwidth memory needed for AI server production.
Korean dramas, K-pop idol groups, and medical tourism have further widened the trade imbalance. Last year, more than 1.89 million Taiwanese visited South Korea, a 28.3% increase over 2024, making Taiwan the country’s third-largest source of foreign tourists.
