September Current Account Surplus of 10.07 Billion USD... 17 Consecutive Months of Surplus

'September 2021 Balance of Payments (Preliminary) Announcement'

[Asia Economy Reporter Jang Sehee] In September of this year, South Korea recorded a current account surplus of 10.07 billion dollars. This marks 17 consecutive months of surplus. The current account balance improved significantly due to continued strong exports and increased transportation income supported by rising maritime freight indices.

According to the "Preliminary Balance of Payments for September 2021" released by the Bank of Korea on the 5th, the current account surplus in September reached 10.07 billion dollars. The surplus decreased by 270 million dollars compared to the same month last year. This marks the 17th consecutive month of surplus since May last year. The current account is a statistic that aggregates all economic transactions between countries, including exports and imports of goods and services, as well as capital and labor.

Last month, despite a reduction in the goods account surplus, improvements in the services account and others led to an increase in the overall surplus. The goods account surplus, which reflects the gap between exports and imports, was 9.45 billion dollars. The surplus narrowed by 2.65 billion dollars compared to the previous year.

Exports amounted to 56.44 billion dollars. Due to the global economic recovery, exports continued to perform well, marking an 11-month consecutive increase compared to the same month last year. Based on customs clearance data, exports of petroleum products increased by 77.2% compared to a year ago. Steel products rose by 32.3%, chemical products by 29.2%, information and communication devices by 35.1%, and semiconductors by 26.9%.

Imports reached 46.98 billion dollars, increasing by 9.78 billion dollars compared to the same month last year. Driven by a sharp rise in raw material prices such as natural gas and crude oil, imports centered on raw materials increased for the 10th consecutive month. By item, imports of raw materials and capital goods rose by 61.5% and 10.0%, respectively. Imports of consumer goods also increased by 7.3%. The increase in imports outpaced that of exports, resulting in a reduced surplus in the goods account.

The services account recorded a deficit of 20 million dollars last month. However, transportation income surged, resulting in a transportation account surplus of 2.06 billion dollars. The surplus increased by 1.77 billion dollars compared to a year ago, maintaining a surplus for 15 consecutive months since July last year.

The primary income account, reflecting flows of wages, dividends, and interest, recorded a surplus of 750 million dollars, expanding by 60 million dollars compared to a year ago. Dividend income increased to 10 million dollars as domestic companies earned more dividends from overseas subsidiaries.

The financial account net assets, indicating capital inflows and outflows, increased by 9.78 billion dollars in September. While domestic investors' overseas direct investment rose by 4.35 billion dollars, foreign investment in South Korea decreased by 340 million dollars.

Securities investment by domestic investors abroad increased by 7.76 billion dollars, continuing an 18-month consecutive growth trend. Both overseas stock and bond investments expanded. Foreign investors' domestic securities investment turned positive, recording 7.83 billion dollars. Foreign investment in domestic stocks turned positive, and bond investment also saw an expanded increase.

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