According to Pulse by Maeil Business News Korea,

South Korea’s current account surplus hit a two-year high in October as exports gained for the first time in 14 months and imports declined.

According to data released by the Bank of Korea on Friday, the country’s current account surplus stood at $6.8 billion in October, extending the positive streak for a sixth month.

Korea’s current account surplus was $1.93 billion in May 2023, $5.87 billion in June, $3.74 in July, $4.98 billion in August, and $5.42 billion in September.

The most recent surplus was the biggest in two years since October 2021’s $7.9 billion figure. But Korea’s current account surplus in the January to October 2023 period stood at $23.37 billion, which is about 85 percent of the level seen during the same period last year.

The BOK projected the country’s current surplus to reach $30 billion in November 2023.

“As of now, we expect that we will be able to achieve the forecasted level amid improvements in the goods exports and other factors,”, BOK head of financial statistics Lee Dong-won said. “As we approach the end of the year, the focus should be on the increasing demand for energy imports and the growing trend of travel.”

The goods account balance maintained a surplus for the seventh month in October at $5.35 billion, and exports increased 7.6 percent in October from the same period a year ago. Outbound shipments rose for the first time in 14 months after 13 months of decline since September 2022, while automobiles exports soared 21 percent in October from a year ago and those of petrochemical products rose 17.7 percent.

The decline in chip exports and priming materials also narrowed to 4.8 percent and 5 percent respectively.

By country, exports to the United States increased 17.3 percent in October from a year ago, those to Southeast Asia rose 12.7 percent, and Japan 10.3 percent. Exports to China, however, fell 9.6 percent and those to the European Union also declined 10.7 percent.

Imports declined 4.3 percent on year to $51.65 billion in October, mainly led by a fall in imports of raw materials (13.4 percent), capital goods (6.3 percent), and consumer goods (4.1 percent).

The services account deficit narrowed to $1.25 billion in October from $3.19 billion in September as the number of foreign travelers to Korea increased. The primary income account surplus widened in October from $1.57 billion in September to $2.77 billion.

Net financial assets, or assets minus liabilities, gained $8.37 billion in October.

Korea’s direct investment overseas increased $1.69 billion while foreign direct investment at home rose $2 billion, while the country’s securities investment abroad gained $2.83 billion while foreign investment in Korea declined $1.58 billion due to weak investor sentiment..


By Pluse

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Source: Pulse by Maeil Business News Korea (December 8, 2023)