S. Korea posts record current account surplus in Jan-Sep on strong exports

Seoul, Nov 6 (IANS) South Korea posted a record current account surplus during the first nine months of this year, driven by solid semiconductor and automobile exports, the central bank said on Thursday.

The country's cumulative current account surplus reached US$82.77 billion from January through September, marking an all-time high for the cited period, according to data from the Bank of Korea (BOK).

The figure compares with $67.23 billion recorded during the same period last year, reports Yonhap news agency.

"Exports remained strong as semiconductors entered a supercycle, while automobile shipments also performed well thanks to market diversification beyond the United States to Europe and other regions," BOK official Shin Seung-chul told a press briefing.

For September alone, the current account surplus came to $13.47 billion, up from $9.15 billion a month earlier.

It marked the largest surplus ever recorded for any September and the second-largest monthly figure overall.

The data also marked the 29th consecutive month of surplus as the country has maintained a current account surplus every month since May 2023. September's surplus was buoyed by solid exports and increased dividend income.

The goods account posted a $14.24 billion surplus, the second-largest monthly figure on record after a $14.52 billion surplus in September 2017, as exports rose 9.6 percent on-year to $67.27 billion, driven by strong shipments of semiconductors and automobiles.

Imports increased 4.5 percent to $53.03 billion in September.

The services account recorded a $3.32 billion deficit, mainly due to a surge in overseas travel demand.

The primary income account, which includes wages of foreign workers, as well as dividend and interest income from abroad, logged a $2.96 billion surplus in September.

"The current account surplus is expected to narrow in October due to fewer working days during the Chuseok holiday," Shin said. "Going forward, the surplus will likely remain solid in November and December given robust semiconductor exports, stable global oil prices and continued surpluses in the primary income account.”

—IANS

na/