In June, South Korea's current account recorded a surplus of $5.61 billion, marking a surplus for two consecutive months. The current account surplus for the first half of the year reached $24.78 billion, exceeding the Bank of Korea's initial forecast of $21 billion. However, due to a sharp rise in raw material prices, the goods balance shrank to about half compared to the same month last year, reducing the surplus by more than $3 billion.
According to the preliminary balance of payments statistics released by the Bank of Korea on the 5th, the current account surplus in June was $5.61 billion. The current account had recorded a deficit of $80 million in April, the first negative figure in two years, but returned to a surplus after one month, showing an increasing trend for two consecutive months through this month. However, the surplus in June decreased significantly by $3.22 billion compared to the same month last year.
The reduction in the surplus was due to the goods balance, which accounts for the largest portion of the current account, shrinking from $7.55 billion in the same month last year to $3.59 billion. During this period, exports increased by 9.1% to $59.53 billion, while imports surged by 18.9% to $55.94 billion. The Bank of Korea explained, "Exports have increased for 20 consecutive months, but the growth rate narrowed due to sluggish exports to China, while imports have increased for 18 consecutive months due to a sharp rise in raw materials and expansion in capital goods."
Based on customs clearance in June, raw material imports increased by 28.9% compared to the same month last year. Among raw materials, the import growth rates for coal, crude oil, petroleum products, and gas jumped to 189.0%, 53.1%, 27.7%, and 27.4%, respectively. Imports of capital goods such as semiconductors (37.0%) and semiconductor manufacturing equipment (6.8%) also increased by 13.7%.
The service balance recorded a deficit of $490 million for the second consecutive month following May. While the transportation balance surplus expanded by $530 million due to high export freight rates, the travel balance deficit increased by $200 million. The primary income balance, which reflects inflows and outflows of wages, dividends, and interest, expanded its surplus from $2.56 billion in the same month last year to $2.77 billion.
The financial account recorded a net asset increase of $4.06 billion. In direct investment, domestic investors' overseas investments increased by $3.81 billion, and foreign investors' domestic investments rose by $830 million. In securities investment, domestic investors' overseas investments increased by $2.3 billion, while foreign investors' domestic investments decreased by $1.45 billion.
The current account surplus for the first half of the year was $24.78 billion. Although this exceeded the Bank of Korea's forecast of $21 billion for the first half, the surplus decreased by $16.97 billion compared to the same period last year.
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