Bank of Korea releases April balance of payments data; semiconductor exports drive 36th consecutive monthly surplus; non-IT goods and services deficit also improve
South Korea's current account surplus reached $28.29 billion in April, extending the country's streak of monthly surpluses to 36 consecutive months, driven largely by strong semiconductor exports.
The Bank of Korea released its preliminary balance of payments data for April on Friday, showing the surplus was down 25.4 percent from the all-time high of $37.93 billion recorded in March but still ranked as the second-largest monthly surplus on record.
The 36-month run of surpluses marks the second-longest such streak since the 2000s.
The goods balance posted a surplus of $33.88 billion, also the second-highest on record, following March. Exports rose 54.5 percent year-on-year to $90.59 billion, while imports climbed 16.1 percent to $56.7 billion.
The Bank of Korea said IT products led export growth, with semiconductors and computer peripherals performing particularly well. Non-IT goods also posted strong gains, boosted by rising petroleum product prices.
Among customs-cleared exports, IT shipments surged 125.9 percent year-on-year in April, led by computer peripherals (up 411.3 percent), semiconductors (up 171.4 percent) and wireless communications devices (up 5.5 percent). Non-IT exports also rose 10.3 percent, driven by petroleum products (up 39.4 percent) and chemicals (up 10.7 percent).
On the import side, the central bank said oil prices rose sharply amid the Iran war, while capital goods including semiconductors and manufacturing equipment also increased significantly. Customs-cleared capital goods imports climbed 27.7 percent year-on-year, led by semiconductor manufacturing equipment (up 55.5 percent) and semiconductors (up 52.8 percent). Raw materials and consumer goods imports rose 12.3 percent and 4.9 percent, respectively.
The services account posted a deficit of $2.42 billion in April, a slight improvement from the $2.7 billion deficit a year earlier. The travel deficit also narrowed sharply, from $530 million to $30 million. The Bank of Korea said the number of inbound visitors exceeded 2 million in April, contributing to the improvement.
The primary income account recorded a deficit of $2.53 billion. Dividend payments were concentrated in April as part of seasonal patterns, and a rise in payout ratios at major companies pushed the dividend balance to a deficit of $3.02 billion. The secondary income account also posted a deficit of $640 million.
The financial account showed net assets of $25.46 billion in April, down 31.2 percent from $36.99 billion the previous month.
In direct investment, South Korean residents increased overseas investment by $6.24 billion, while foreign investment in South Korea fell by $1.36 billion. In portfolio investment, residents expanded overseas holdings by $8.22 billion, led by shares; net share purchases totaled $5.9 billion, up roughly 50 percent from $3.94 billion the previous month, as US equity markets rebounded. Foreign portfolio investment in South Korea rose $3.51 billion overall. In shares, foreign investor sentiment improved on easing Middle East tensions and solid earnings from domestic chipmakers, with net selling falling sharply to $1.24 billion from the record $29.33 billion in March. Debt securities swung to an increase of $4.75 billion following South Korea's inclusion in the FTSE World Government Bond Index.
Financial derivatives fell by $1.51 billion. In other investment, assets rose $8.87 billion, centered on cash and deposits, while liabilities fell $4.78 billion, mainly due to reduced borrowing. Reserve assets increased by $1.02 billion.
kimstar@heraldcorp.com
