March Current Account Surplus of $7.82 Billion... 11 Consecutive Months of Surplus

Bank of Korea to Announce 'March 2021 Balance of Payments (Preliminary)' on 7th
Goods Balance Surplus of 7.92 Billion USD

[Asia Economy Reporter Jang Sehee] The current account balance continued its surplus trend for 11 consecutive months due to increases in shipping and air freight indices and dividend income.

According to the preliminary balance of payments statistics released by the Bank of Korea on the 7th, the current account surplus for March was recorded at $7.82 billion.

This marks the 11th consecutive month of surplus since May last year and is $1.88 billion higher than the same month last year ($5.94 billion).

The goods account surplus was $7.92 billion, an increase of $960 million compared to the same month last year ($6.96 billion).

Exports ($54.38 billion) increased by 18.5% ($8.48 billion) and imports ($46.46 billion) rose by 19.3% ($7.52 billion) compared to one year ago.

The services account recorded a deficit of $900 million. In particular, thanks to the sharp rise in shipping and air freight indices, the transportation account shifted from a $90 million deficit in March last year to a $690 million surplus this March.

The travel account deficit ($360 million) narrowed by $10 million compared to the same month last year ($370 million).

The primary income account surplus ($1.28 billion) also increased by $420 million from a year earlier, supported by higher dividend income.

The net financial account (assets minus liabilities) increased by $10.01 billion in March. In direct investment, domestic investors' overseas investments rose significantly to $4.22 billion, while foreign investors' domestic investments increased by $1.97 billion.

In securities investment, domestic investors' overseas investments increased by $6.43 billion, and foreign investors' domestic securities investments rose by $7.27 billion.