South Korea's Current Account Surplus Hits Nine-Month Low in January

In January, South Korea's current account surplus experienced a significant decrease, reaching its lowest point in nine months. This decline is primarily attributed to a notable drop in exports of key products, including automobiles, largely due to fewer working days during the Lunar New Year holiday.

Exports and Imports Decline

According to the Bank of Korea (BOK), the current account surplus for January was $2.94 billion, marking the smallest surplus since April of the previous year. The goods account showed a surplus of $2.5 billion, with exports and imports decreasing by 9.1 percent and 6.2 percent, respectively, compared to the previous month.

Impact on Different Sectors

The BOK highlighted that while exports of IT products like semiconductors and computers continued to rise, non-IT products such as petroleum products and passenger cars saw a significant decline. This overall drop led to the lowest export levels since April 2023.

Services and Financial Accounts

The services account recorded a deficit of $2.06 billion, mainly due to a shortfall in the travel account. However, the primary income account showed a surplus of $2.62 billion, driven by dividend income. Additionally, the net assets in the financial account increased by $3.72 billion in January, with changes in direct and securities investments.