September Current Account Surplus for 5 Consecutive Months... 'Recession-Type' Limits Remain

September Balance of Payments Preliminary Statistics
Surplus of 5.42 Billion USD
Imports Decreased More Than Exports

South Korea's current account recorded a surplus of $5.42 billion in September. The surplus trend continued for the fifth consecutive month as imports decreased more than exports.

According to the preliminary balance of payments statistics released by the Bank of Korea on the 8th, the current account surplus for September this year was $5.42 billion.

After posting a deficit of -$790 million in April, the surplus continued for five months with $1.93 billion in May, $5.87 billion in June, $3.74 billion in July, and $4.81 billion in August.

By category, the goods balance showed a surplus of $7.42 billion, maintaining a surplus since April. However, this was a recession-type surplus caused by imports decreasing more than exports.

Exports amounted to $55.65 billion, down only 2.4% compared to the same month last year, while imports decreased by 14.3% to $48.23 billion. Both the amount and rate of decrease in imports exceeded those of exports.

In exports, passenger cars (based on customs clearance, 9.1%) continued to increase, but semiconductors (-14.6%) and chemical products (-7.3%) declined, marking a 13th consecutive month of year-on-year decrease.

By region, exports increased to the United States (8.5%), the EU (6.5%), and Latin America (18.2%), but decreased to China (-17.6%) and Southeast Asia (-7.4%).

Imports decreased mainly in raw materials (-20.9%), capital goods (-12.2%), and consumer goods (-9.0%), showing a year-on-year decline for seven consecutive months.

Capital goods imports, including semiconductors (-21.4%) and information and communication devices (-28.0%), decreased by 12.2%, while consumer goods imports such as grains (-30.3%) also shrank by 9%.

The services balance showed a deficit of $3.19 billion, more than doubling the deficit of -$1.57 billion in August. The travel balance recorded a deficit of $970 million, reducing the deficit compared to the previous month (-$1.14 billion), and the intellectual property rights balance turned to a deficit of $670 million.

The primary income balance showed a surplus of $1.57 billion, mainly from dividend income. It has been in surplus for five consecutive months since turning positive in May. The surplus slightly increased compared to the previous month ($1.46 billion) but decreased compared to the same month last year ($2.7 billion).

The net financial account, which is assets minus liabilities, increased by $4.52 billion in September.

Direct investment saw an increase of $2 billion in overseas investment by domestic investors and $350 million in domestic investment by foreign investors.

In securities investment, overseas investment by domestic investors increased by $6.57 billion, and domestic investment by foreign investors increased by $1.37 billion.

[Image source=Yonhap News]

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