Strong semiconductor exports have propelled South Korea to record a current account surplus of over $28.29 billion in April. The cumulative surplus for the year has now surpassed $100 billion through April.
According to preliminary statistics released by the Bank of Korea on June 5, the current account for April was recorded at a surplus of $28.29 billion (approximately 43.37 trillion won). This marks the second-largest surplus on record, following March's surplus of $37.93 billion.
The country has maintained a current account surplus for 36 consecutive months, the second-longest streak since the 2000s. Notably, the cumulative current account surplus for the first four months of this year reached $102.67 billion, which is 4.3 times higher than the $24 billion recorded during the same period last year. Additionally, the annual surplus for 2024 has already been surpassed within just four months.
Yoo Sung-wook, head of the Bank of Korea's Financial Statistics Department, stated, "The current account surplus for April is the largest ever recorded for that month, exceeding $20 billion for three consecutive months for the first time in history." He added, "In comparison with major countries, our surplus of $74.4 billion in the first quarter was the second highest after China. Last year, we ranked fifth behind China, Germany, Japan, and Taiwan, but in the first quarter of this year, we surpassed Japan, Taiwan, and Germany."
On an annual basis, Taiwan has had a larger surplus than South Korea since 2019. Last year, Taiwan's surplus exceeded South Korea's by about $57 billion, but in the first quarter of this year, South Korea's surplus was approximately $12 billion higher.
In April, the surplus in goods was recorded at $33.88 billion, marking the second highest ever, following March's $35.68 billion. Exports totaled $90.59 billion, a 54.5% increase from a year earlier, also ranking as the second highest after March's $94.9 billion. The information technology (IT) sector, particularly semiconductors and computer peripherals, continued to perform well, while non-IT items were influenced by rising oil product prices. Notable increases were seen in computer peripherals (411.3%), semiconductors (171.4%), oil products (39.4%), and chemical products (10.7%).
Imports also rose by 16.1% to $56.7 billion. Capital goods imports increased by 27.7%, driven by semiconductor manufacturing equipment (55.5%), semiconductors (52.8%), and information and communication devices (23.8%). Raw material imports rose by 12.3%, led by coal (26.7%), chemical products (21.3%), and crude oil (13.1%), while consumer goods imports increased by 4.9%.
The services account recorded a deficit of $2.42 billion. Although this was an improvement from a deficit of $2.7 billion in April of last year, it was larger than the previous month's deficit of $1.31 billion.
Within the services account, the travel balance showed a deficit of $30 million, reverting to a deficit after a surplus of $14 million in March, the first in 11 months. However, the number of inbound travelers exceeded 2 million in both March and April, reducing the deficit compared to April of last year, which was $530 million.
The primary income account shifted from a surplus of $3.59 billion in March to a deficit of $2.53 billion in April. This change was attributed to seasonal dividend payments and an increase in the dividend payout ratio among major companies, resulting in a shift from a surplus of $2.71 billion in dividend income to a deficit of $3.02 billion.
The financial account recorded a net increase of $25.46 billion in assets (assets minus liabilities), a decrease from the previous month's increase of $36.99 billion. Direct investment saw an increase of $6.24 billion in domestic investments abroad, while foreign investments in South Korea decreased by $1.36 billion.
In securities investment, domestic investments abroad increased by $8.22 billion, primarily in stocks, while foreign investments in South Korea rose by $3.51 billion, mainly in bonds.
Foreign investments in domestic stocks, which saw a record decline of $29.33 billion in March, decreased by $1.24 billion in April, indicating a reduction in the rate of decline. Improved investor sentiment, due to easing tensions in the Middle East and positive earnings reports from domestic semiconductor companies, contributed to the weakening of the sell-off.
Foreign investments in debt securities turned around from a decrease of $4.72 billion in March to an increase of $4.75 billion in April, aided by the inclusion in the World Government Bond Index (WGBI).
* This article has been translated by AI.
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