The current account in March posted a surplus of $37.33 billion (54.7 trillion won) on a preliminary basis, the Bank of Korea said on the 8th. Exports rose, led by semiconductors. The surplus surpassed the previous record set in February at $23.19 billion, and the run of surpluses reached 35 straight months, the second longest since 2000. The cumulative current account surplus for January to March was $73.78 billion, about four times the same period a year earlier ($19.49 billion).
Even with the impact of the U.S.-Iran war fully reflected from April, the current account surplus trend was expected to hold as strong semiconductor exports are forecast to continue. Kim Young-hwan, Director General of Economic Statistics Department 1, said, "The Middle East impact tends to show up in April's goods imports and exports, but it wasn't enough to shake the overall trend."
Exports, boosted by strong semiconductors, came to $94.32 billion, up 56.9% from a year earlier, the largest on record. By item, semiconductors on a customs-cleared basis jumped 194.8% to $32.97 billion. Computer peripherals rose 165.7%, and petroleum products increased 69.2%.
Imports were $35.07 billion, up 17.4% from a year earlier. Capital goods imports increased 23.6% on the back of information and communications equipment and semiconductors, and raw material imports turned to growth for the first time in six months. Consumer goods imports also rose 2.1%.
The services account recorded a deficit of $1.29 billion. However, within the services account, the travel account posted a surplus of $140 million. It was the first surplus in 11 years and 4 months since November 2014 ($50 million). Boosted by events such as BTS's performance at Gwanghwamun in Seoul, the number of arrivals in March topped 2 million for the first time.
The primary income account surplus was $3.58 billion. As dividend income from direct and portfolio investment increased, the balance on dividend income posted a surplus of $2.7 billion. However, the Director General said, "In April, domestic residents' dividend income increases, so the primary income account is likely to show a deficit."
Net worth in the financial account increased by $36.99 billion. Overseas investment by domestic residents rose by $8.89 billion, and investment in Korea by foreign investors increased by $3.77 billion. Within securities investment, overseas investment by domestic residents increased by $4.0 billion, driven by stocks, but investment in Korea by foreign investors fell by $34.04 billion. However, as the Korea Composite Stock Price Index (KOSPI) recently hit an all-time high, investment in Korea by foreign investors was expected to increase in April.