Strong Exports Sustain Six-Month Surplus Streak

South Korea has maintained a current account surplus for six consecutive months, thanks to robust exports of semiconductors and automobiles. According to preliminary statistics released by the Bank of Korea on December 6, the current account surplus in October stood at $9.78 billion.

Record-Breaking Surplus Despite Slight Decline

After recording a deficit of $290 million in April, the country achieved consecutive surpluses of $8.92 billion in May, $12.56 billion in June, $8.97 billion in July, $6.52 billion in August, and $10.94 billion in September. While the October surplus is slightly lower than September's, it ranks as the third-highest on record for October. The cumulative current account surplus from January to October was $74.24 billion, up $63.3 billion from $24.18 billion during the same period last year.

Exports and Imports Dynamics

The goods account recorded a surplus of $8.12 billion in October. Exports reached $60.08 billion, up 4 percent from a year earlier. Semiconductor exports rose by 39.8 percent year-on-year, with other notable increases in steel products, passenger cars, information and communication devices, and petrochemicals. However, machinery and precision instruments decreased by 4.2 percent, while petroleum products declined by 34.5 percent. Imports decreased by 0.7 percent to $51.96 billion, driven by reductions in raw materials, including crude oil, petroleum products, coal, and petrochemicals.

Services and Financial Accounts

The services account recorded a deficit of $1.73 billion, larger than the deficit of $1.28 billion a year earlier but narrower than the $2.24 billion deficit in the previous month. The travel account deficit was $480 million, narrower than September's deficit of $940 million, as travel revenue increased during China's National Day holiday period. The primary income account posted a surplus of $3.45 billion, slightly up from $3.09 billion in the previous month. Net assets in the financial account increased by $12.98 billion in October, with direct and portfolio investments seeing significant growth.