Korea logs sixth month of surplus, largest in two years

Containers are stacked up at a yard in Busan on Nov. 21. Korea logged a current account surplus for the sixth consecutive month in October, reaching $6.8 billion. [JOONGANG PHOTO]

Korea logged a current account surplus for the sixth consecutive month in October on a trade surplus that was helped by a jump in exports, showed central bank data on Friday.

Korea’s current account surplus reached $6.8 billion in October compared to the surplus of $5.42 billion the previous month, according to the preliminary data from the Bank of Korea (BOK). The surplus was the largest since $7.9 billion was logged in October 2021.

In the first 10 months of the year, the country's current account surplus reached $23.37 billion, compared to $27.38 billion during the same period of last year.

The central bank expects this year's current account surplus to be roughly in line with its estimate of $30 billion.

The central bank “believes Korea will be able to meet the projection on the improvement of outbound shipments,” said Lee Dong-won, head of the financial statistics division at the BOK. “It should be noted that demand for energy imports and travel tends to increase as we near the year-end.”

October's surplus came as the country's trade balance has remained in the black for seven straight months and dividend income from overseas has increased.

The country's goods account racked up a $5.35 billion surplus in October, following a $7.42 billion surplus the previous month.

The nation's outbound shipments rose 7.6 percent on-year in October to $57 billion, an upturn for the first time in 14 months, while imports declined 4.3 percent over the cited period to $51.65, according to the central bank's data.

"Chip exports rebounded, and exports to China also recovered, signaling that a recovery in exports is increasingly gaining momentum," the central bank said.

Exports of automobiles jumped 21 percent on year, followed by petroleum products with 17.7 percent. Chip exports were down 4.8 percent, slowing from a 14.6 percent plunge the previous month.

The primary income account — which tracks the wages of foreign workers, dividend payments from overseas and interest income — reported a surplus of $2.77 billion in October, following a $1.57 billion surplus in September, the data showed.

The services account deficit also narrowed to $1.25 billion in October from a loss of $3.19 billion the previous month, the data showed.

The central bank said travelers from Southeast Asia and Japan increased, while an expected recovery in arrivals from China is being delayed.

BY JIN MIN-JI, YONHAP [jin.minji@joongang.co.kr]