Current Account Surplus of $5.7 Billion in April... 24 Consecutive Months in the Black

In April, the current account recorded a surplus of $5.7 billion, marking the 24th consecutive month in the black. While seasonal factors such as foreign dividend payments reduced the figure compared to the previous month, it increased year-over-year.

According to the Bank of Korea on the 10th, the current account in April totaled $5.7 billion. This is nearly half the $9.14 billion recorded the previous month, but a significant rise from the $1.49 billion surplus a year ago.

The goods balance posted a surplus of $8.99 billion, which is larger than last month's $8.49 billion. Exports stood at $58.57 billion, a 1.9% increase compared to the same month last year. Export growth in IT products such as semiconductors (16.9%) and wireless communication devices (6.3%) continued. Apart from passenger cars (-4.1%) and petroleum products (-13.8%), non-IT exports also increased.

Conversely, imports declined by 5.1%, reaching $49.58 billion. The fall in energy prices led to a 10.4% decrease in raw material imports. Consumer goods imports also fell by 2.1%, mainly driven by a decrease in grains (-11.5%).

The service account recorded a deficit of $2.83 billion, a wider gap than the previous month’s $2.21 billion deficit. This was largely due to a $1.51 billion deficit in other business services, mainly reflecting increased payments by domestic firms for R&D services.

Travel account posted a deficit of $500 million, an improvement from the previous month's $720 million deficit, attributed to increased domestic travel by foreigners. However, the transport account shifted from a $260 million surplus to a $10 million deficit, marking the first deficit in 15 months as container shipping rates fell.

The primary income balance recorded a $190 million deficit, with the dividend income balance showing a $650 million deficit. April is a month when domestic firms concentrate their dividend distribution. Nevertheless, with Korean nationals receiving more dividends from abroad, the deficit narrowed to about one-third of last year’s $1.93 billion deficit.

In the financial account, net assets grew by $4.51 billion. Direct investment increased by $3 billion, reflecting higher investment in key industries such as automobiles and secondary batteries. In the stock market, there was a ninth consecutive month of net selling by foreigners, with the scale reaching $9.18 billion — a significant increase from last month’s net selling of $4.5 billion. Meanwhile, net overseas stock investment by the government and nationals increased by $8.8 billion.

Reporter Jin-kyu Kang josep@hankyung.com