The Bank of Korea said on the 5th that the current account posted a surplus of $28.29 billion in April. Following March's record surplus of $37.93 billion, it was the second largest on record. The cumulative surplus for January–April was $102.67 billion, reaching a level close to last year's record $123.05 billion in just four months.
Looking only at the first quarter, the surplus was $74.4 billion, the second largest after China, ahead of Germany, Japan and Taiwan. It was the first time since 2019 that the current account surpassed Taiwan's.
According to the Bank of Korea's balance of payments for April released that day, exports in April were $90.59 billion, up 54.5% from a year earlier. It was the second largest on record after March. The Bank of Korea said exports remained strong, led by semiconductors and computer peripherals. Looking at customs-based exports in April, IT rose 125.9% from a year earlier. Within IT, computer peripherals jumped 411.3%, and semiconductors increased 171.4%.
Imports, by contrast, were $56.7 billion, up 16.1% from a year earlier. The war between the United States and Iran pushed up international oil prices, which in turn raised import prices. Higher prices for capital goods related to semiconductors also had an impact. In customs imports, among raw materials, coal rose 26.7%, crude oil 13.1% and petroleum products 3.9%, respectively. Among capital goods, semiconductor manufacturing equipment increased 55.5% and semiconductors 52.8%.
The goods balance, which subtracts imports from exports, recorded a surplus of $33.88 billion. Although it decreased from March's record $35.68 billion, it was the largest ever for April. The Bank of Korea projected that exports and imports in May would be at a level comparable to March's record, thanks to the semiconductor boom.
The Bank of Korea assessed that it is hard to see this as a "K-shaped growth" in which only semiconductors rise and polarization widens, as exports of non-IT items such as pharmaceuticals and ships are also increasing. A Bank of Korea official said the surge likely reflects the sheer increase in semiconductor exports.
The services account recorded a deficit of $2.42 billion. The telecommunications, computer and information services balance turned to a deficit for the first time in 40 months since December 2022, and the travel account recorded a deficit of $30 million. A Bank of Korea official said it was a temporary deficit due to large computer service payments, usually made at the end of each month, being delayed to early May.
The primary income account posted a deficit of $2.53 billion. The dividend income balance recorded a deficit of $3.02 billion. This reflected both the seasonal concentration of corporations' dividends in April and an increase in corporations' payout ratios.