Korea logs $7.4 billion current account surplus as chip exports recover

This file photo taken Sept. 21, 2023, shows a port in the southeastern city of Busan. [YONHAP]

Korea logged a current account surplus for the eighth-straight month in December on the back of an increased trade surplus and increased overseas dividends, according to central bank data Wednesday.

The country's current account surplus reached $7.41 billion in December, following a surplus of $3.89 billion.

December's surplus came as the country's trade balance has remained in the black.

The country's goods account racked up an $8.04 billion surplus in December, following a $6.88 billion surplus the previous month, in part due to a chip exports recovery.

Exports of chips increased by 19.1 percent in December on-year. Passenger car exports also climbed by 19.2 percent.

Outbound shipments rose 5 percent on-year in December to $57.61 billion, while imports dropped 10.8 percent over the same period to $53.16 billion, according to central bank data.

The primary income account, which tracks the wages of foreign workers, dividend payments from overseas and interest income, reported a $2.46 billion surplus in December, following a $120 million loss in November.

The services account deficit widened to $2.54 billion in December from a deficit of $2.21 billion the previous month.

Last year, the country reported a current account surplus of $35.49 billion, compared with a surplus of $25.83 billion during the same period the previous year.

BY YONHAP, JIN EUN-SOO [jin.eunsoo@joongang.co.kr]