April current account surplus of $28.29 billion... second largest ever due to strong semiconductor exports
Bank of Korea 'April Balance of Payments': IT exports centered on semiconductors strong... travel balance turns to deficit
Containers stacked high at Busan Port's Sinseondae Terminal. (Yonhap News)
The Bank of Korea announced on the 5th that the country's current account surplus in April reached $28.29 billion. This is the second largest on record, following March's all-time high of $37.93 billion. The current account surplus streak has continued for 36 months, the longest since the 2000s. The longest streak since 2000 was 82 months from March 2012 to December 2018.
The large surplus was mainly driven by strong exports, particularly semiconductors, similar to the previous month. April exports were $85.87 billion, up 48.0% from the same month last year. Semiconductor exports surged 171.4% to $32.04 billion, and information and communication equipment exports rose 123.2% to $6.56 billion. Exports of petroleum products ($5.15 billion) and ships ($2.77 billion) increased by 39.4% and 49.9%, respectively. By region, exports to Southeast Asia were particularly high at 74.2%, while exports to China (62.6%) and the United States (54.0%) also saw significant increases. Exports to Japan (28.4%) and the European Union (8.5%) continued to grow.
Imports totaled $62.11 billion, up 16.7% from April last year. Imports of raw materials (12.3%), capital goods (27.7%), and consumer goods (4.9%) all increased. Among raw materials, crude oil imports rose 13.1% to $7.03 billion. Non-ferrous metals (38.1%) and minerals (28.0%) saw high import growth. In capital goods, imports of semiconductor manufacturing equipment rose 55.5%, and semiconductor imports also recorded a high increase of 52.8%. The Bank of Korea explained, "As oil prices rose due to the US-Iran war, imports of capital goods such as semiconductors and equipment also increased, continuing the upward trend."
The goods balance surplus, exports minus imports, was $33.88 billion, also the second largest after March ($35.68 billion). The services balance recorded a deficit of $2.42 billion, primarily in R&D services, other business services, and processing services. The travel balance turned from a small surplus of $0.14 billion the previous month to a deficit of $0.03 billion. The primary income balance recorded a deficit of $2.53 billion, mainly due to dividend income, and the transfer income balance was a deficit of $0.64 billion.
Senior Reporter Kim Young-bae, kimyb@hani.co.kr
