[Photo by Kim Ho-young]

According to Pulse by Maeil Business News Korea,

South Korea’s current account extended its positive streak for the third consecutive month in July, driven by strong chip exports.

According to data released by the Bank of Korea on Friday, the country’s current account surplus stood at $9.13 billion in July, marking the third straight month of surplus.

The surplus, however, fell by more than $3.4 billion from $12.56 billion in June, which was the largest surplus in nearly seven years.

For the month of July, this year’s surplus was the highest since 2015.

The cumulative current account surplus for the first seven months of this year came to $47.17 billion, up $41.91 billion from $5.26 billion in the same period last year.

The goods account posted a surplus of $8.49 billion in July, maintaining a positive streak for 16 consecutive months since April last year.

Exports in July reached $58.63 billion, up 16.7 percent from a year ago, marking 10 straight months of growth.

Exports of semiconductors (50.1 percent), information and communication equipment (29.8 percent), petroleum products (16.8 percent), and machinery and precision instruments (14.3 percent) rose in July from a year ago, while passenger car exports fell by 8.9 percent.

Exports to Southeast Asia rose 27.4 percent, China 14.9 percent, Japan 10 percent, and the United States 9.3 percent.

Imports increased by 9.4 percent to $50.14 billion.

Raw material imports grew by 9.5 percent, with significant rises in petroleum products (37.9 percent), natural gas (23.5 percent), and crude oil (16.1 percent).

Capital goods imports increased by 11.9 percent in July, led by gains in transport equipment (121.1 percent), semiconductors (16.3 percent), and precision instruments (15.2 percent).

Consumer goods imports, such as passenger cars (58.3 percent) and electronics (15.5 percent), rose by 10.7 percent.

The services account posted a $2.38 billion deficit, widening from a $1.6 billion deficit in June.

The travel account, in particular, recorded a deficit of $1.26 billion, widening from a $900 million deficit in June due to increased overseas travel by Korean nationals.

The primary income account increased to $3.15 billion in July from $2.71 billion in June, largely due to reduced dividend payments to foreign direct investors. The dividend income surplus rose to $2.79 billion from $2.34 billion.

Net assets in the financial account increased by $11.03 billion in July.

Direct investment of Koreans overseas rose by $4.33 billion in July while that of foreigners in Korea rose by $2.99 billion.

In securities investment, Koreans’ investment overseas gained $10.11 billion, while foreigners’ investment in Korea $3.92 billion.



By Pulse

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Source: Pulse by Maeil Business News Korea (September 6, 2024)