May Current Account Surplus Hits Record High on Strong Semiconductor Exports

[Anchor]

South Korea's current account surplus reached an all-time monthly high in May, driven by strong semiconductor exports. This marks a new record just two months after the previous high in March, extending the country's streak of surplus to 37 consecutive months.

Reporter Lee Tae-gwon has the story.

[Reporter]

The Bank of Korea announced that the nation's current account surplus for May stood at 38.61 billion dollars.

This surpasses the previous record of 37.93 billion dollars set in March, marking a new high in just two months.

The surplus has continued for 37 consecutive months since May 2023, the longest streak since March 2019 in the 2000s.

The record-breaking current account surplus was fueled by strong exports, led by semiconductors.

Exports in May reached 94.34 billion dollars, an increase of 62.9 percent compared to the same month last year.

IT-related items, including computer peripherals and semiconductors, surged by 128.9 percent, while non-IT items such as petroleum products also saw an expansion in growth.

Imports also rose by 22.2 percent year-on-year to 56.48 billion dollars, with increases across capital goods, raw materials, and consumer goods.

The Bank of Korea explained that imports increased due to a rise in capital goods such as semiconductors and equipment, amid a sharp increase in international oil prices following the war between the United States and Iran.

The central bank also noted that the cumulative surplus from the beginning of the year through May reached 141.3 billion dollars, projecting that the first-half performance will exceed initial expectations.

[Interview] Yoo Sung-wook / Director of Economic Statistics Department, Bank of Korea: We had projected a surplus of about 151.5 billion dollars for the first half, but it seems likely to exceed that forecast, which could potentially lead to a higher annual figure as well....

Although the service account recorded a deficit of 1.09 billion dollars, the travel account shifted to a surplus, narrowing the overall deficit compared to the previous month.

The primary income account, which reflects dividends and interest earned from abroad, posted a surplus of 2.17 billion dollars.

The financial account, which tracks capital flows, showed a net asset increase of 31.08 billion dollars, the second-largest increase on record.

However, foreign investment in domestic stocks saw a record-high decrease of 31.05 billion dollars as investors continued to take profits following the rise in the stock market.

Reported by Lee Tae-gwon | Video by Kim Jin-won
※ Please note: This article was translated by AI and may contain errors.