South Korea logged a record $49.7 billion current account surplus in June, marking the second consecutive month of record highs. The Bank of Korea released the data on Thursday, revealing that the surplus for the month reached $49.73 billion. This surplus eclipsed the previous monthly record of $38.61 billion set in May, extending a streak of record-breaking surpluses.
Exports hit $100 billion for the first time
The goods account posted a record surplus of $47.89 billion in June, up from $37.86 billion in May. Exports surged 84.5 percent from a year earlier to $112.37 billion, exceeding $100 billion for the first time in a single month. Semiconductor and information and communications technology exports continued to post strong growth, while machinery, precision instruments and passenger car exports also increased.
On a customs-clearance basis, exports of computer peripherals, including solid-state drives, soared 282.7 percent. Semiconductor exports jumped 196.9 percent and wireless communications equipment exports rose 60.6 percent. Exports to Southeast Asia surged 105.7 percent, followed by China at 92 percent, the United States at 78.6 percent, Latin America at 36.1 percent, European Union at 31.8 percent and Japan at 15.8 percent.
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Exports to the Middle East fell 8.5 percent.
Imports rise, services deficit narrows
Imports rose 38.6 percent to $64.48 billion, well below the pace of export growth. Capital goods imports increased 35.3 percent, led by semiconductors, up 64.1 percent; information and communications technology equipment, 44 percent; semiconductor manufacturing equipment, 42.4 percent; and transport equipment, 3.2 percent.
Raw material imports rose 30.5 percent, with coal up 63.0 percent, crude oil 50.3 percent, chemicals 28.8 percent, gas 22.4 percent and petroleum products 22.3 percent. Consumer goods imports increased 16.4 percent. The services account posted a $1.29 billion deficit, narrower than the $2.8 billion deficit a year earlier but wider than the $1.09 billion deficit in May.
The travel account recorded a $440 million surplus, its second-largest on record. It returned to a surplus of $50 million in May after posting a $30 million deficit in April, and remained in surplus for a second straight month in June. The surplus widened as more foreign visitors entered Korea while fewer Koreans traveled abroad, partly due to higher fuel surcharges.
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Net financial assets hit record high
Net financial assets, measured as assets minus liabilities, increased by $46.71 billion, the largest monthly increase on record. The figure surpassed the previous high of $36.99 billion set in March. Korean residents’ overseas direct investment rose by $8.01 billion, while foreign direct investment in Korea increased by $4.63 billion.
In portfolio investment, Korean residents increased overseas investment by $3.56 billion, mainly in stocks, while foreign investment in Korean securities fell by $26.32 billion, also led by stocks. Foreign investment in Korean stocks plunged by $31.61 billion, the largest decline on record, as investors engaged in record net selling to take profits and for other reasons.
Foreign investment in debt securities rose by $5.29 billion in June, down from a $6.4 billion increase in May. The slower increase came as some securities matured at the end of the quarter, offsetting inflows from funds tracking the World Government Bond Index.
