November Current Account Surplus of $7.16 Billion... 19 Consecutive Months of Surplus

The Bank of Korea Announces November 2021 Balance of Payments (Preliminary)

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The current account surplus for November recorded $7.16 billion. The surplus continued for 19 consecutive months, but the surplus margin narrowed.

According to the "November 2021 Balance of Payments (Provisional)" announced by the Bank of Korea on the 11th, the current account surplus in November was $7.16 billion. Compared to the same month last year, the surplus margin decreased by $2.02 billion.

The goods account surplus, which is the difference between exports and imports, was $5.95 billion, narrowing by $4.5 billion compared to the same month last year.

Exports recorded $59.65 billion, an increase of $12.74 billion (27.1%) compared to the same month last year ($46.92 billion). With the global economic recovery, exports of major items continued to perform well, and overseas production exports expanded, resulting in a 13-month consecutive increase compared to the same month last year. Based on customs clearance exports in October, petroleum products increased by 127.1% compared to the same month last year, semiconductors and chemical products increased by 38.8% and 35.8%, respectively. Additionally, steel products rose by 33.7%, and passenger cars increased by 3.3%.

Imports recorded $53.7 billion, an increase of $16.74 billion (45.3%) compared to the same month last year ($36.97 billion). Due to the sharp rise in raw material prices, imports of raw materials (+72.9%) increased, and imports of capital goods (+24.2%) and consumer goods (+18.2%) also continued, marking a 12-month consecutive increase. Based on customs clearance imports in November, petroleum products surged by 192.0% compared to the same month last year, while gas and crude oil increased by 165.0% and 127.8%, respectively.

The services account deficit narrowed to $140 million due to improvements in the transportation account. The transportation account recorded a surplus of $1.71 billion, expanding by $1.26 billion compared to the same month last year ($450 million). Transportation income reached $4.49 billion due to continued increases in export freight rates. The November Container Freight Index (SCFI) was 4562, up 143.0% compared to the same month last year, and the air cargo freight index (TAC, Hong Kong-US) also rose 88.8% to 13.8 in November.

The primary income account surplus, which is income earned by Korean nationals overseas, recorded $1.49 billion, an increase of $1.01 billion compared to the same month last year ($480 million). Dividend income turned to a surplus of $670 million.

The financial account net assets, which indicate capital inflows and outflows, increased by $6.54 billion in November. In direct investment, domestic investors' overseas investments increased by $5.35 billion, while foreign investors' domestic investments decreased by $970 million.

In securities investment, domestic investors' overseas securities investments increased by $6.55 billion, and foreign investors' domestic securities investments increased by $2.95 billion.

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