Current Account Surplus of $1.61 Billion in September... Exports Decline for the First Time in 23 Months

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jung] The current account, which had turned to a deficit for the first time in four months due to a significant expansion of the trade balance deficit last month, returned to a surplus in September.

According to the "September Balance of Payments (Provisional)" released by the Bank of Korea on the 8th, the domestic current account recorded a surplus of $1.61 billion. Compared to the same month last year, the surplus decreased by $8.89 billion.

The current account posted a deficit of $79 million in April, then increased its surplus to $3.86 billion in May and $5.61 billion in June. After sharply reducing the surplus to $790 million in July, it turned to a deficit of $3.05 billion in August, but returned to a surplus this month.

Within the current account, the trade balance recorded a surplus of $490 million, a sharp decrease of $9.06 billion compared to the same month last year.

During this period, exports amounted to $57.09 billion, a decrease of $42 million compared to the same month last year. Customs-cleared exports continued to increase mainly in petroleum products and passenger cars, but slightly decreased due to a slowdown in net re-exports.

This marks the first time in 23 months since October 2020 (-3.5%) that exports have turned to a decline.

Imports ($56.59 billion) increased by $8.63 billion compared to the same month last year. With increased imports of raw materials and expansion in capital goods and consumer goods, imports have shown an increase for 21 consecutive months compared to the same month last year.

The service account also recorded a deficit of $340 million for two consecutive months as the surplus in the transportation account shrank. The deficit widened by $280 million compared to the same month last year.

The net financial account, which is assets minus liabilities, increased by $4.59 billion. In direct investment, domestic investors' overseas investment increased by $4.78 billion, and foreign investors' domestic investment increased by $470 million. Domestic investors' overseas securities investment decreased by $500 million, while foreign investors' domestic securities investment expanded by $1.49 billion.

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