In March, the current account recorded a surplus of $9.14 billion. South Korea's current account maintained a surplus for 23 consecutive months. The increase in exports of IT items, including semiconductors and computers, is evaluated as a driving force behind the current account surplus.
The current account is a comprehensive statistic that summarizes the results of the import and export of goods and services between countries. It is one of the key indicators used to evaluate a country's economic situation. The current account consists of the goods account, services account, primary income account (investment and earned income), and transfer account (gifts and remittances).
According to the 'March 2025 balance of payments (preliminary)' announced by the Bank of Korea on the 9th, the current account recorded a surplus of $9.14 billion in March. This has maintained a surplus for 23 consecutive months since May 2023. The surplus increased compared to $7.18 billion in February and $6.99 billion in the same month last year.
Over 90% of the current account surplus came from the goods account. The goods account surplus for March was calculated at $8.49 billion. This was an increase of $300 million compared to the previous month and over $100 million compared to the same month last year.
Exports recorded $59.31 billion, an increase of 2.2% compared to the same month last year. In February, semiconductor exports ($13.2 billion) showed a year-on-year decline of 2.5%, but in March, they increased by 11.6%, marking a turnaround to growth in just one month. Although exports of petroleum products (-28.2%) and home appliances (-22.9%) declined, significant increases in ships (52.6%) and information and communication devices (21.0%) led to overall export growth.
Imports also recorded $50.82 billion, an increase of 2.3% compared to the same month last year. Excluding energy sources such as crude oil and coal, the increase level was 6.0% compared to March of last year. In terms of specific items, semiconductor manufacturing equipment (85.1%), machinery and precision instruments (29.3%), and durable consumer goods (18.1%) increased, while coal (-34.6%), grains (-17.3%), and petroleum products (-15.1%) decreased.
The services account, which includes transactions in travel, transportation, and construction, recorded a deficit of $2.21 billion. The deficit improved by $1 billion compared to the previous month ($3.21 billion). The reduction in the travel account deficit was significant, with March's travel account deficit recorded at $720 million, which is half the level of the previous month's travel account deficit ($1.45 billion).
In contrast, the scale of the transportation account surplus ($330 million to $260 million) decreased, and the deficit in intellectual property royalties increased from -$580 million to -$630 million.
The primary income account, reflecting the flow of wages, dividends, and interest, recorded a surplus of $3.23 billion. The interest income account decreased from $1.2 billion in the previous month to $800 million, but the dividend income account increased from $1.68 billion (February) to $2.6 billion (March) due to an increase in dividend receipts from direct investments.
The transfer account, which refers to amounts exchanged without compensation between residents and non-residents, recorded a deficit of $370 million. The deficit decreased compared to the previous month (-$410 million) and the same month last year (-$540 million).
The financial account net worth, indicating capital inflows and outflows, increased by $7.82 billion. Direct investment increased by $4.75 billion as domestic investors increased overseas investments. Foreign investment in the domestic market also increased by $760 million. Securities investment, primarily focused on domestic investments in overseas stocks, increased by $12.13 billion, while foreign investment in the domestic market, centered on bonds, increased by $4.5 billion.