Korea's current account surplus in November last year surged to roughly double the previous month's level, marking the largest on record for any November. A near-39% jump in semiconductor exports appeared to lead the surplus.
According to the balance of payments (preliminary) released by the Bank of Korea on the 9th, the current account in November last year posted a surplus of $12.24 billion, up to 1.8 times the previous month's $6.81 billion. It was the largest November surplus on record. With this, the current account recorded a surplus for 31 consecutive months, extending the second-longest run of surpluses since the 2000s.
The key driver of the larger surplus was an expansion in the goods balance (exports minus imports). The current account includes several balances such as services, travel, and dividends, among which the goods balance, similar in nature to the trade balance, has the largest weight. The November goods balance posted a surplus of $13.31 billion, up $5.49 billion from the previous month's $7.82 billion. The goods balance also set a record high for November.
Export growth drove the goods surplus. Exports in November (customs-cleared basis) rose 5.5% from a year earlier to $60.11 billion. Robust exports of information technology (IT) items, led by semiconductors, drove the increase. By item, semiconductor exports jumped 38.7%, and computer peripherals (+3.2%) also continued to rise. By region, exports to Southeast Asia (+18.4%) and China (+6.9%)—major markets—increased.
Imports also fell 0.7%, led by raw materials (-7.9%), contributing to the goods surplus. In particular, gas (-33.3%), petroleum products (-16.9%), and crude oil (-14.4%) decreased sharply. Capital goods rose 4.7% as transport equipment (+20.4%) and ICT devices (+16.5%) increased. Consumer goods rose 19.9% overall as gold imports surged 554.7%.
The services account, which includes travel, transportation, and intellectual property royalties, posted a deficit of $2.73 billion, narrowing from the previous month's -$3.75 billion. The deficit shrank as the number of outbound travelers, which had surged during the Chuseok holiday period in October last year, declined. The primary income account, reflecting flows of wages, dividends, and interest, recorded a surplus of $1.83 billion, smaller than the previous month's $2.94 billion. The secondary income account posted a deficit of $180 million.
The cumulative current account surplus for January–November this year totaled $101.82 billion. That is $13.18 billion less than the Bank of Korea (BOK)'s annual forecast of $115 billion presented in November last year.
Song Jae-chang, head of the BOK's Financial Statistics Department, said, "Semiconductor exports in December were so strong that, if reflected, it appears we can clearly achieve $115 billion for the year," adding, "In that case, we would record the highest surplus, surpassing $105.12 billion in 2015." He added, "It also appears possible to achieve this year's current account forecast of $130 billion."