South Korea Achieves Current Account Surplus for 22nd Month in February

Synopsis

South Korea's current account surplus reached $7.18 billion in February, marking the 22nd consecutive month of surplus, driven by rising exports. The Bank of Korea reports a notable increase in the goods account, despite challenges in global trade.

Key Takeaways

Current account surplus of $7.18 billion in February.
Exports increased by 3.6% year-on-year.
Goods account surplus at $8.18 billion for 23 months running.
Concerns over economic slowdown and U.S. tariffs.
2024 surplus projected at $99.04 billion.

Seoul, April 8 (NationPress) South Korea recorded a current account surplus for the 22nd consecutive month in February, driven by increased exports, as indicated by central bank data released on Tuesday.

The nation’s current account surplus amounted to US$7.18 billion in February, an increase from a $2.94 billion surplus in January, according to data from the Bank of Korea.

This surplus marks the third-largest for any February on record. The country has maintained a current account surplus every month since May 2023, as reported by Yonhap news agency.

The goods account recorded an $8.18 billion surplus in February, marking 23 consecutive months of surplus.

The surplus was bolstered by a 3.6 percent year-on-year increase in exports, reaching $53.79 billion. Key drivers included the outbound shipment of computers, automobiles, and bio-health products, although exports of semiconductors and petroleum products saw a decline in February.

Imports rose by 1.3 percent month-on-month to $45.61 billion. However, the services account experienced a $3.21 billion deficit largely due to heightened demand for overseas travel, according to the central bank.

The primary income account, which encompasses wages of foreign workers, dividends from abroad, and interest income, recorded a $2.62 billion surplus in February.

“Concerns about economic slowdown have escalated in light of the new U.S. tariff policy, which may impact local exports, especially in the automobile, auto parts, and steel sectors,” stated BOK official Song Jae-chang during a press briefing.

The administration of U.S. President Donald Trump announced plans to impose “reciprocal” tariffs on imports from many countries, including a 25 percent duty on South Korean goods, effective Wednesday (U.S. time).

Additionally, a 10 percent “baseline” tariff on foreign imports was implemented last Saturday, resulting in promises of retaliatory tariffs from China and other nations.

In 2024, South Korea reported a current account surplus of $99.04 billion, a significant rise from a surplus of $32.82 billion the previous year, according to the BOK.