The current account in September returned to the black after a month, and the goods balance also posted a surplus despite the continued effects of rising international prices for commodities.
The Bank of Korea’s preliminary data on balance of payments released on Nov. 8 said September’s current account saw a surplus of USD 1.61 billion (KRW 2.25 trillion), but this was USD 8.89 billion less than USD 10.51 billion in the same month last year.
From January to September this year, the cumulative current account surplus was USD 24.14 billion, down USD 43.27 billion from the same period last year.
The current account remained in the black from May 2020 to March this year before posting a deficit in April due to a surge in imports and scheduled payment of overseas dividends. The surplus came back in May and also returned to the black in September after posting a deficit of USD 3.05 billion in August.
The goods balance saw a surplus of USD 490 million, up a whopping USD 5 billion from August, which saw a deficit of USD 4.45 billion, and the first turnaround in three months.
Exports reached USD 57 billion, down 0.7% from USD 420 million over the same period last year, and imports rose 18% or USD 8.63 billion to USD 56.59 billion.
On a customs clearance basis, export growth was led by petroleum products (51.3%) and cars (34.9%) while declines were seen in semiconductors (5%) and steel products (16.5%). By market, shipments to the U.S. (16%) and Japan (2.4%) saw positive growth but those to the European Union (0.7%), Southeast Asia (3%) and China (6.5%) decreased.
The service account posted a deficit of USD 340 million. Amid the easing of COVID-19 regulations, the tourism deficit reached USD 540 million, up USD 60 million from that in the same month last year.
Source: Korea.net