'Third Largest Surplus on Record'... September Current Account Surplus of $11.12 Billion (Update)

'September International Balance of Payments (Preliminary)'
Current Account Surplus of $11.12 Billion... Largest Since June
Continued Strong IT Exports Including Semiconductors

Exports of semiconductors and mobile phones continued to perform well, resulting in a current account surplus for five consecutive months. It recorded the largest surplus since June and achieved the third highest surplus on record as of September.

According to the 'September Balance of Payments (provisional)' released by the Bank of Korea on the 7th, South Korea's current account surplus in September amounted to $11.12 billion. The current account recorded a deficit for the first time in a year in April due to an increase in foreign dividends but has maintained a surplus for five consecutive months since May.

The surplus size was the largest since June ($12.56 billion), ranking third highest on record for September. Last September, the current account surplus was $6.07 billion.

The cumulative current account surplus from January to September was $64.64 billion, an increase of $47.89 billion compared to the same period last year ($16.75 billion).

By category, the goods balance ($10.67 billion) expanded its surplus compared to the previous month, mainly driven by strong IT product performance. Exports increased by $61.67 billion, up 9.9% compared to the same month last year. Based on September customs clearance, semiconductor exports rose 36.7%, information and communication devices increased 30.4%, and passenger cars grew 6.4% year-on-year. On the other hand, the decline in non-IT products widened. Exports of petroleum products (-17.6%), chemical products (-8.4%), machinery and precision instruments (-7.8%), and steel products (-1.6%) decreased.

By region, exports increased to Southeast Asia (16.2%), China (6.3%), the EU (5.1%), and the United States (3.4%) compared to the same month last year, while exports to Japan (-0.8%) decreased.

Imports increased by $51 billion, up 4.9% year-on-year. Although imports of raw materials such as crude oil and coal turned to a decline, the increase in capital goods such as semiconductors expanded. Based on September customs clearance, imports of raw materials such as chemical products (-12.5%) and crude oil (-11.6%) decreased by 6.8% year-on-year. In contrast, imports of capital goods such as semiconductor manufacturing equipment (62.1%), semiconductors (26.5%), and precision instruments (7.6%) increased by 17.6%. Consumer goods imports rose by 0.3%.

The services balance recorded a deficit of $2.24 billion, centered on travel, processing services, and intellectual property royalties. The deficit in the travel balance narrowed as the peak overseas travel season ended. The deficit in intellectual property royalties widened due to seasonal factors reducing receipts from trademarks and research and development copyrights.

The primary income balance showed a surplus of $3.09 billion, mainly from dividend income. The secondary income balance recorded a deficit of $390 million.

The financial account net assets, which show capital inflows and outflows, increased by $12.68 billion in September, expanding the surplus compared to the previous month ($4.93 billion). Direct investment saw an increase of $2.47 billion in outbound investment by domestic investors and a $1.44 billion increase in inbound investment by foreigners.

Securities investment showed a $75 increase in outbound investment by domestic investors, mainly in bonds. Foreigners' domestic investment decreased by $1.3 billion, mainly in stocks.