In May, South Korea's current account surplus exceeded $38.6 billion, setting a new record. This figure surpassed the previous record set in March by just two months and has already exceeded last year's total surplus for the first five months of the year. The strong performance in exports, particularly in semiconductors, suggests that the annual current account surplus could exceed the Bank of Korea's forecast of $250 billion.
According to provisional statistics released by the Bank of Korea on July 8, the current account surplus for May was recorded at $38.61 billion, marking the largest monthly surplus on record. This figure surpassed the previous high of $37.93 billion set in March. The cumulative current account surplus from January to May reached $141.28 billion, already exceeding last year's total surplus of $123.05 billion.
Yoo Sung-wook, head of the Bank of Korea's financial statistics department, stated, "We initially projected a current account surplus of $151.5 billion for the first half of the year, but based on the results through May, it is likely to exceed that estimate. We also expect the annual surplus to surpass the previous forecast of $250 billion." He added that exports in June, driven by semiconductors, exceeded $100 billion, maintaining a high level, and that the current account for June is expected to show a surplus of around $40 billion.
By category, the goods balance recorded a surplus of $37.86 billion, the largest ever. Exports of goods reached $94.34 billion, a 62.9% increase compared to the same period last year. Notably, exports of information technology (IT) products surged by 128.9%, with computers and peripherals increasing by 249.4% and semiconductors by 167.7%. Non-IT products also saw a 10.0% increase, led by petroleum products (49.1%) and chemical products (11.0%).
While the services balance recorded a deficit of $1.09 billion, the shortfall was significantly reduced compared to May of last year (-$2.56 billion) and the previous month (-$2.42 billion). The travel balance turned to a surplus of $50 million as the number of inbound travelers increased by 19.4% year-on-year. The primary income balance shifted from a deficit of $2.53 billion in April to a surplus of $2.17 billion in May, as seasonal factors related to dividend payments were resolved. The dividend income balance also improved from a deficit of $3.02 billion to a surplus of $1.15 billion.
The financial account recorded a net increase of $31.08 billion, marking the second-largest increase on record. Direct investment saw an increase of $4.56 billion in domestic investments abroad and $2.69 billion in foreign investments in South Korea.
In securities investment, domestic investments abroad increased by $6.24 billion, primarily in stocks, while foreign investments in South Korean stocks decreased by $24.65 billion. Notably, foreign investment in domestic stocks recorded a net outflow of $31.05 billion, the largest decrease on record, attributed to profit-taking sales amid rising domestic stock prices. Conversely, foreign investment in debt securities increased by $6.4 billion, supported by inflows into funds tracking the World Government Bond Index (WGBI).
* This article has been translated by AI.
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