August Current Account Surplus of 7.51 Billion USD... 16 Consecutive Months of Surplus

Continued Export Growth Centered on Petroleum Products and Semiconductors
Service and Transport Balances Turn to Surplus Due to Improvement

[Asia Economy Reporter Jang Sehee] In August, South Korea recorded a current account surplus of 7.51 billion dollars. This marks 16 consecutive months of surplus.

According to the "Preliminary Balance of Payments for August 2021" released by the Bank of Korea on the 7th, the current account surplus in August was 7.51 billion dollars. The surplus increased by 870 million dollars compared to a year ago. Thus, the current account has maintained a surplus streak for 16 months since May last year. The current account is a statistic that sums all economic transactions including exports and imports of goods and services, as well as capital and labor between countries.

Last month, despite a reduction in the goods account surplus, the surplus size increased due to improvements in the services account and primary income account.

The goods account surplus, which indicates the gap between exports and imports, was 5.64 billion dollars last month. The surplus decreased by 1.45 billion dollars compared to a year ago (7.08 billion dollars).

Exports recorded 52.22 billion dollars, an increase of 31.2% compared to a year ago. Supported by the global economic recovery, exports continued to perform well, centered on petroleum products and semiconductors. Based on customs clearance, petroleum product exports increased by 53.9% compared to a year ago. Chemical products rose 49.5%, steel products 47.9%, information and communication devices 43.2%, and semiconductors 41.5%.

Imports were 46.59 billion dollars, up 42.4% year-on-year. With rising prices of raw materials such as oil, ongoing facility investments, and increased durable goods consumption, imports of raw materials, capital goods, and consumer goods all increased. By item, imports of raw materials and capital goods rose by 79.1% and 21.6%, respectively. Consumer goods imports also increased by 16.3%. Since the increase in imports exceeded that of exports, the goods account surplus shrank.

Last month, the services account turned from a deficit to a surplus of 1 billion dollars due to improvements in the transportation account. With a significant increase in transportation income, the transportation account recorded a surplus of 1.52 billion dollars.

The primary income account, reflecting flows of wages, dividends, and interest, recorded a surplus of 1.11 billion dollars, an increase of 410 million dollars compared to a year ago. Dividend income recorded a surplus of 480 million dollars as dividends earned by domestic companies from overseas subsidiaries increased.

The financial account net assets, indicating capital inflows and outflows, increased by 5.8 billion dollars in August. In direct investment, domestic investors' overseas investments increased by 5.33 billion dollars, and foreign investors' domestic investments increased by 590 million dollars.

In securities investment, domestic investors' overseas securities investments increased by 5.38 billion dollars, while foreign investors' domestic investments decreased by 3.12 billion dollars.

This content was produced with the assistance of AI translation services.