S. Korea's current account surplus hits record US$89.6 bln through Oct.
South Korea's current account surplus narrowed sharply from a month earlier in October as exports fell due mainly to fewer working days caused by the Chuseok holiday, but the cumulative surplus during the first 10 months of this year reached an all-time high, central bank data showed Friday, Yonhap reports.
The country's current account surplus came to US$6.81 billion in October, down from $13.47 billion a month earlier, according to data from the Bank of Korea (BOK).
But the data marked the 30th consecutive month of surplus as the country has maintained a current account surplus every month since May 2023, representing the second-longest surplus streak ever.
During the first 10 months of this year, the cumulative surplus totaled $89.58 billion, compared with $76.63 billion during the same period last year, marking the largest amount ever recorded for the cited period.
"From November, the holiday effect faded and a substantial trade surplus was reported, led by strong semiconductor exports. The current account surplus, accordingly, is likely to rebound to well above $10 billion," Song Jae-chang, director of the BOK's financial statistic department, told a press briefing.
In its latest economic outlook released last month, the central bank projected this year's annual current account surplus at a record high of $115 billion.
The goods account posted a surplus of $7.82 billion in October, narrowing from the previous month's $14.24 billion surplus, as exports fell 4.7 percent on-year to $55.88 billion due to fewer working days amid the extended Chuseok holiday.
Imports also declined 5 percent to $48.06 billion.
This year's holiday ran from Oct. 3-9 as Chuseok, the Korean fall harvest festival, fell between two national holidays -- National Foundation Day on Oct. 3 and Hangeul Day on Oct. 9, which marks the creation of the Korean alphabet.
The services account recorded a deficit of $3.75 billion due mainly to a surge in overseas travel demand.
The primary income account, which includes wages of foreign workers as well as dividend and interest income from abroad, posted a surplus of $2.94 billion in October, driven by an increase in equity income.
The secondary income account recorded a deficit of $190 million, the data showed.
In the financial account, net assets increased by $6.81 billion in October.
In detail, overseas direct investment by South Korean residents rose by $1.88 billion, while foreign direct investment into South Korea increased by $150 million, resulting in a net increase of $1.73 billion.
In portfolio investment, overseas investment by local residents jumped by $17.27 billion, led by a surge in equity investment, while foreign investment into South Korean stocks also rose by $5.2 billion, leading to a net increase of $12.08 billion, according to the BOK.
To note, South Korea's yearly exports are expected to hit a record high in 2025 on the back of strong performance by key export items, such as semiconductors, automobiles and ships, the industry ministry said Thursday.
