Current Account Surplus for Ten Consecutive Months... Semiconductor Boosts Positive Trend

February Current Account Surplus of $6.86 Billion
Semiconductors Remain Strong Despite Decline in Passenger Cars

[Image source=Yonhap News]

The current account recorded a surplus of $6.86 billion, maintaining a positive trend for the tenth consecutive month since May last year, driven by strong semiconductor performance.

According to the preliminary balance of payments statistics released by the Bank of Korea on the 5th, the current account surplus for February was $6.86 billion.

The current account has shown a surplus for eight consecutive months from May last year (+$1.93 billion) through December. The surplus expanded for three consecutive months after July (+$4.11 billion), decreased in November (+$3.89 billion), then expanded again to $7.41 billion in December, before shrinking again in January (+$3.05 billion). This month, however, the surplus more than doubled compared to the previous month.

Exports ($52.16 billion) saw decreases in steel products and passenger cars, but semiconductors continued to expand, recording a positive growth for five consecutive months (+3% year-on-year). Based on customs clearance data, semiconductors increased by 63%, machinery and precision instruments by 0.3%, while petroleum products decreased by 4%, passenger cars by 8.2%, steel products by 8.8%, and chemical products by 8.9%.

By region, exports continued to increase to Southeast Asia (+20.1%), the United States (+9.1%), and Japan (+1%), but declined to China (-2.4%) and the EU (-8.4%).

Imports ($45.55 billion) decreased by 12.2% year-on-year. Due to falling energy prices, raw materials continued to decline. Based on customs clearance data, raw materials decreased by 19.1%, capital goods by 5.3%, and consumer goods by 6.6% compared to the same month last year.

By detailed category, the goods balance maintained a surplus of $6.61 billion, continuing the surplus streak since April last year. The surplus expanded compared to the previous month ($4.24 billion) and turned positive compared to the same month last year (-$1.25 billion), reflecting increased exports and decreased imports.

The services balance recorded a deficit of $1.77 billion, mainly due to travel and processing services. The transportation balance turned to a surplus of $180 million as transportation payments decreased, while the travel balance (-$1.36 billion) continued its deficit streak.

The primary income balance showed a surplus of $1.82 billion, mainly from dividend income. The surplus expanded as dividend income from overseas subsidiaries of domestic companies increased. The secondary income balance recorded a deficit of $420 million.

The net financial account, calculated as assets minus liabilities, increased by $6.85 billion, a significant expansion compared to the previous month (+$2.81 billion). Direct investment saw domestic investors' overseas investment increase by $3.3 billion, mainly in the secondary battery sector, while foreign investment in Korea decreased by $710 million. Securities investment showed domestic investors' overseas investment increased by $9.05 billion, mainly in stocks, and foreign investment in Korea also increased by $10.65 billion, mainly in stocks.

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