The current account posted a $49.73 billion surplus in June, the Bank of Korea said on the 6th. Following the previous month ($38.61 billion), it set an all-time high for the second straight month. The cumulative current account from January to June was $191.01 billion, surpassing last year's record ($123.0528 billion). At this pace, it is likely to exceed the Bank of Korea's May projection ($250 billion).
According to the "June balance of payments (preliminary)" the Bank of Korea released that day, the goods account recorded a $47.89 billion surplus, ranking No. 1 of all time for the second consecutive month. Goods exports reached $112.37 billion, breaking $100 billion for the first time ever. Thanks to strong semiconductor exports, IT items rose 160.4% from a year earlier.
The services account recorded a $1.29 billion deficit. As subscriptions to artificial intelligence (AI) services and online video services (OTT) such as Netflix increased, the intellectual property rights usage balance swung to a $440 million deficit. In contrast, as more foreign tourists arrived, the travel balance posted a $440 million surplus, the second highest on record.
In particular, foreign investors' net selling of domestic stocks reached $31.61 billion, setting a new record high. As the domestic KOSPI index surged, investors moved to take profits and rebalance. In contrast, bonds saw net buying of $5.29 billion.
Koreans were net buyers of $5.29 billion in overseas stocks. As the government and other financial institutions reduced their net purchases, the figure edged down from the previous month ($6.4 billion). For bonds, amid a shift to the view that the U.S. Federal Reserve (Fed) could raise its benchmark rate, there was net selling of $3.98 billion.
Accordingly, net worth in the financial account increased by $46.71 billion. Both direct investment assets ($8.01 billion) and direct investment liabilities ($4.63 billion) saw their increases widen. Securities investment assets rose by $3.56 billion, with the pace of increase slowing. This was due to a larger decline in debt securities (bonds). Net worth in the financial account increases when Koreans' overseas investment rises or foreign investment in Korea decreases.
The primary income account related to interest, dividends, and wages was found to have a $3.27 billion surplus. As dividend income increased, the dividend income balance posted a $2.56 billion surplus.