Korea‘s current account surplus extends for 9th month in January

[Photo by Yonhap]

South Korea’s current account surplus kept its positive streak for the 9th month in January, driven by strong exports of semiconductors and automobiles, data showed Friday.

According to data released by the Bank of Korea, the country’s current account surplus stood at $3.05 billion in January, extending the surplus streak for the 9th month in a row since May 2023. The surplus, however, fell from $7.41 billion in December 2023.

The goods account recorded a surplus of $4.24 billion in January, maintaining its positive territory for the 10th month since April 2023.

Exports jumped 14.7 percent on year to $55.22 billion in January, continuing an upward trend for four months in a row since a rebound in October last year after 14 months of decline.

Outbound shipments of semiconductors increased 52.8 percent in January from a year ago while those of automobiles increased 24.8 percent, machinery and precision equipment 16.9 percent, and petroleum products 12 percent.

By region, exports to the U.S. rose 27.1 percent in January from a year ago, those to Southeast Asia increased by 24.4 percent, and to China gained 16 percent.

Imports declined by 8.1 percent on year to $50.98 billion in January.

In particular, raw material imports decreased by 11.3 percent due to the impact of falling energy prices. Among raw materials, imports of gas fell by 42.3 percent, chemical industrial products by 16.3 percent, and coal 8.2 percent.

Imports of crude oil and petroleum products, however, rose by 6 percent and 24.2 percent, respectively.

[Graphics by Song Ji-yoon]

Capital goods imports fell by 3.8 percent, largely led by the decline in the imports of information and communication equipment with a fall of 16.1 percent, while consumer goods like passenger cars and grains also saw a decline of 44.6 percent and 6.5 percent in imports, respectively, due to sluggish domestic demand.

The services account posted a deficit of $2.66 billion, widening from a deficit of $2.54 billion in December 2023.

The primary income account recorded a surplus of $1.62 billion in January, with the surplus slightly lower compared to the $2.46 billion in the previous month and $6.67 billion a year ago.

This was primarily due to the decrease in dividend income from overseas subsidiaries of domestic companies, reducing the surplus in dividend income to $1.35 billion from $2.25 billion in just one month.

Net assets in the financial account rose by $2.81 billion in January.

Direct investment of Koreans overseas added $2.16 billion while that of foreigners in Korea $220 million. Koreans’ investment gained $6.51 billion in January and foreigners’ $6.52 billion.