According to Pulse by Maeil Business News Korea,

South Korea logged a current account surplus for the sixth consecutive month in October 2024 on the back of robust exports of chips and automobiles.

The surplus, however, narrowed from the previous month due to a decline in the exports of non-IT products such as petroleum goods.

According to data released by the Bank of Korea on Friday, the country’s current account surplus reached $9.78 billion in October. The surplus surpassed the $7.44 billion logged in the same month in 2023 but fell short of $10.94 billion in September.

When compared to historical October figures, the 2024 surplus ranks as the third-largest.

Cumulative surpluses for the first 10 months of 2024 totaled $74.24 billion, up from $24.18 billion during the same period last year.

The goods account posted a surplus of $8.12 billion in October 2024, maintaining 19 straight months of surplus since April 2023. The surplus, however, declined from $10.49 billion in September.

Exports totaled $60.08 billion in October, up 4 percent year-on-year, continuing 13 consecutive months of growth. Semiconductors led the surge with a 39.8 percent increase, steel products increased 6.8 percent, passenger vehicles 5.2 percent and IT devices 5.2 percent.

By destination, exports to China rose by 10.8 percent, while those to Southeast Asia increased 7.7 percent, the European Union 5.7 percent, and the United States 3.4 percent.

Imports totaled $51.96 billion in October, down 0.7 percent from the previous year. Declines in raw material imports, particularly crude oil (-17.9 percent), petroleum products (-13.3 percent), coal (-9.5 percent), and chemical products (-6.7 percent), accounted for much of the drop.

In contrast, capital goods imports increased by 7.5 percent, driven by semiconductor manufacturing equipment (48.6 percent), semiconductors (18.2 percent), and precision instruments (3.3 percent). Consumer goods imports, including luxury items such as jewelry, grew by 8.8 percent, with jewelry and related products surging by 72.9 percent.

The services account recorded a $1.73 billion deficit, smaller than the previous month’s $2.24 billion but larger than the $1.28 billion deficit recorded a year ago.

The travel account showed a $480 million deficit, narrowing from September’s $940 million deficit due to increased tourism revenue during China’s Golden Week holiday. However, the transport account moved into a $230 million deficit in October, reversing a $400 million surplus in September, as container shipping rates declined.

The primary income balance posted a $3.45 billion surplus, an improvement from $3.09 billion in September.

Dividend income remained stable at $2.49 billion, maintaining the upward momentum in income from overseas investments.

In the financial account, which tracks net changes in national assets and liabilities, Korea recorded a net increase of $12.98 billion in October.

Outbound direct investment rose by $280 million, while foreign direct investment into Korea increased by $2.25 billion. Securities investments showed a net inflow, with Korean investments in foreign bonds increasing by $2.91 billion and foreign investments in Korean bonds rising by $1.2 billion.


By Pulse

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