South Korea posts record August current account surplus

Seoul, Oct 2 (IANS) South Korea posted a record current account surplus for any August, despite weak exports, driven by declining imports and increased equity income, the central bank said on Thursday.

The country's current account surplus reached US$9.15 billion in August, extending its surplus streak to the 28th consecutive month, according to data compiled by the Bank of Korea (BOK), reports Yonhap news agency.

South Korea has reported a current account surplus every month since May 2023.

It also marked the highest figure on record for any August, though the surplus narrowed from $10.78 billion posted in July.

During the first eight months of this year, the cumulative current account surplus stood at $69.3 billion, compared with $55.94 billion recorded during the same period last year.

Exports fell 1.8 percent on-year to $56.44 billion amid weak demand for steel and chemical products, while imports dropped 7.3 percent to $47.04 billion on lower global energy prices.

The services account registered a $2.12 billion deficit, largely due to increased overseas travel demand.

The primary income account, which covers wages of foreign workers, as well as dividend and interest income from abroad, recorded a $2.07 billion surplus in August, the data showed.

The BOK said the country's current account surplus is likely to widen further in September, in line with its annual projection of a $110 billion surplus.

"Exports reached an all-time high last month on the back of strong semiconductor and automobile shipments. We expect the September surplus to exceed $10 billion," BOK official Song Jae-chang said during a press briefing.

So far, the impact of the United States' new tariff scheme has been limited due to inventory use and diversification of import sources.

"Overall, the semiconductor sector is performing well and oil prices are stable. The tariff impact on exports to the U.S. would gradually appear, but it remains to be seen," he added.

—IANS

na/