Gyeongsang Surplus for 9 Months... Semiconductor Exports Up 52.8% YoY

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Thanks to strong exports of semiconductors and automobiles, the current account recorded a surplus of $3.05 billion in January this year, continuing a surplus trend for nine consecutive months.

According to the preliminary balance of payments statistics announced by the Bank of Korea on the 8th, the current account recorded a surplus of $3.05 billion in January.

The current account showed 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), expanded again to $7.41 billion in December, and then decreased again in January.

In terms of exports, the growth in semiconductors expanded significantly, and the increase in passenger cars, machinery & precision instruments continued, recording positive growth for four consecutive months. Based on customs clearance, semiconductors increased by 52.8%, passenger cars by 24.8%, machinery & precision instruments by 16.9%, petroleum products by 12%, and steel products by 5.1%, while chemical products decreased by 1%.

Imports continued to decline across raw materials (based on customs clearance -11.3%), capital goods (-3.8%), and consumer goods (-4.2%) due to falling energy prices and sluggish domestic demand.

By region, exports to the United States (+27.1%) and Southeast Asia (+24.4%) expanded, and exports to China (+16%), the EU (+5.2%) turned to growth.

By detailed items, the goods balance continued its surplus streak since April last year, recording $4.24 billion. This was due to exports increasing by 14.7% year-on-year to $55.22 billion and imports decreasing by 8.1% to $50.98 billion.

The services balance recorded a deficit of $2.66 billion, centered on travel and processing services, which continued to show deficits due to an increase in outbound travelers.

The primary income balance showed a surplus of $1.62 billion, mainly from dividend income. However, the surplus narrowed compared to the previous month ($2.46 billion) due to a decrease in dividend income from overseas subsidiaries of domestic companies. The secondary income balance recorded a deficit of $150 million.

The net financial account, which is assets minus liabilities, increased by $2.81 billion, but the increase was smaller compared to the previous month ($5.68 billion). In direct investment, domestic investors’ overseas investment increased by $2.16 billion, and foreign investors’ domestic investment increased by $220 million. In securities investment, domestic investors’ overseas investment increased by $6.51 billion, mainly in stocks, and foreign investors’ domestic investment increased by $6.52 billion, mainly in bonds.

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