Driven by strong semiconductor exports, South Korea recorded its largest-ever current account surplus in international trade in May, nearing 60 trillion won.
According to preliminary balance of payments data released by the Bank of Korea (BOK) today (July 8), the current account surplus for May reached $38.61 billion (approximately 58.6 trillion won).
This marks the largest monthly surplus on record, surpassing the previous high of $37.93 billion set in March of this year.
The country has maintained a surplus streak for 37 consecutive months since May 2023.
This is the second-longest streak of surpluses since the 2000s, following an 83-month consecutive surplus period that ended in March 2019.
The cumulative current account surplus from January to May of this year reached $141.28 billion.
This is more than four times the figure from the same period last year ($33.9 billion) and has already exceeded last year's total annual surplus ($123.05 billion).
Yoo Sung-wook, head of the Economic Statistics Department at the BOK, stated, "We had projected a surplus of $151.5 billion for the first half of the year, but looking at the cumulative surplus from January to May, it seems we will exceed that," adding, "We also expect to surpass the annual forecast of $250 billion."
He added, "We expect a very high level of current account surplus in June, exceeding $100 billion in exports, led by semiconductors," and noted, "I think it could reach the $40 billion level."
Yoo added, "While semiconductor exports are exceptionally strong, other sectors such as petroleum products, chemicals, bio, and pharmaceuticals are also not in a bad situation."
Looking at the May current account by category, the goods account surplus reached $37.86 billion, the highest on record.
The previous record was $35.68 billion in March.
Exports ($94.34 billion) surged by 62.9% compared to a year ago.
While the strong export growth trend for semiconductors and information and communication devices continued, the growth rate for petroleum products also expanded.
By item, based on customs clearance, computer peripherals (249.4%), semiconductors (167.7%), petroleum products (49.1%), and chemicals (11.0%) saw significant increases.
By region, exports showed strength in China (80.8%), Southeast Asia (74.4%), the United States (59.4%), Latin America (43.2%), Japan (12.6%), and the Eurozone (3.2%).
Exports to the Middle East decreased by 7.5%.
Imports ($56.48 billion) also increased by 22.2%, but the growth rate was lower than that of exports.
Capital goods imports rose by 28.0%, led by semiconductors (61.1%), semiconductor manufacturing equipment (54.9%), and information and communication devices (7.7%).
Raw material imports increased by 22.1%, mainly due to petroleum products (70.5%), coal (37.2%), chemicals (27.6%), and crude oil (24.8%), while consumer goods imports also rose by 1.8%.
The services account recorded a deficit of $1.09 billion.
The deficit size narrowed compared to the same month last year (-$2.56 billion) and the previous month (-$2.42 billion).
Within the services account, the travel account recorded a surplus of $50 million.
After recording a surplus in March ($140 million) for the first time in 11 years and 4 months, it shifted to a deficit in April (-$30 million) before returning to a surplus.
The number of inbound travelers in May increased by 19.4% compared to a year ago.
The primary income account shifted from a deficit of $2.53 billion in April to a surplus of $2.17 billion in May.
As dividend payments decreased due to the resolution of seasonal factors from the previous month, the dividend income account shifted from a deficit of $3.02 billion to a surplus of $1.15 billion.
Net assets (assets minus liabilities) in the financial account increased by $31.08 billion.
This was the second-largest increase following the record high in March ($36.99 billion).
In direct investment, overseas investment by Koreans increased by $4.56 billion, and domestic investment by foreigners increased by $2.69 billion.
In securities investment, overseas investment by Koreans increased by $6.24 billion, mainly in stocks, while domestic investment by foreigners decreased by $24.65 billion, primarily in stocks.
Foreign investment in domestic stocks plummeted by $31.05 billion, marking the largest decline on record.
The decline widened due to profit-taking sales following the rise in domestic stock prices.
Foreign investment in debt securities increased by $6.4 billion, driven by inflows of funds tracking the World Government Bond Index (WGBI).
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