Last Year Current Account Surplus of 35.5 Billion USD... Exceeds Forecast of 30 Billion USD

8 Consecutive Months of Profit

The export improvement trend centered on semiconductors continued, with the current account recording a surplus of $7.41 billion in December last year. This marks eight consecutive months of surplus. The annual current account surplus reached $35.49 billion, exceeding the Bank of Korea's forecast of $30 billion.

According to the 'December International Balance of Payments (provisional)' announced by the Bank of Korea on the 7th, the domestic current account recorded a surplus of $7.41 billion. This is more than three times the $2.31 billion surplus recorded in the same month last year.

The current account has shown a surplus for eight consecutive months from May (+$1.93 billion) to December. The size of the current account surplus expanded for three consecutive months after July (+), decreased in November (+$3.89 billion), but expanded again in December.

By detailed item, the goods balance recorded a surplus of $8.04 billion, maintaining a surplus since April. This was due to exports increasing by 5.8% year-on-year to $59 billion and imports decreasing by 9.3% to $50.97 billion.

Exports increased for three consecutive months due to the expanded growth in semiconductors and continued strong performance in passenger cars. Based on customs clearance, passenger cars increased by 19.2%, and semiconductors by 19.1%. By region, increases were seen in the United States (+20.7%), Southeast Asia (+15.4%), and Japan (+2.5%).

Imports continued to decline mainly in raw materials (customs basis -14%), capital goods (-7.9%), and consumer goods (-5.8%) as energy prices fell.

The services balance recorded a deficit of $2.54 billion, mainly due to travel and other business services. The deficit widened compared to the previous month (-$2.21 billion). The travel balance (-$1.34 billion) saw a slight increase in deficit as travel income decreased due to fewer Japanese tourists visiting Korea. The intellectual property rights balance turned to a deficit of $250 million as income from patent royalties received by domestic companies from overseas subsidiaries decreased.

The primary income balance recorded a surplus of $2.46 billion, increasing from the previous month (-$120 million) but decreasing by $3.15 billion compared to December last year ($5.61 billion). Among the primary income balance, the dividend income balance showed a surplus of $2.25 billion, reflecting increased dividend income from overseas subsidiaries of domestic companies and the disappearance of the previous month's quarterly dividend payment effect.

The net financial account, calculated as assets minus liabilities, increased by $5.68 billion. In direct investment, domestic investors' overseas investment increased by $5.83 billion, centered on the secondary battery sector, and foreign investors' domestic investment increased by $1.41 billion.

In securities investment, domestic investors' overseas investment and foreign investors' domestic investment increased by $3.04 billion and $2.83 billion respectively, mainly in stocks.

Last year, the current account recorded a surplus of $35.49 billion, surpassing the Bank of Korea's forecast. In its revised economic outlook in November last year, the Bank of Korea expected the current account surplus to reach $30 billion this year.

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