**’November Balance of Payments (Provisional)’**
Current account surplus of $9.3 billion… Surplus sustained for 7 consecutive months
Strong exports of semiconductors and other IT products
The continued strong export trend of IT items such as semiconductors and information and communication devices maintained the current account surplus for the seventh consecutive month.
According to the ‘November Balance of Payments (Provisional)’ announced by the Bank of Korea on the 8th, Korea recorded a current account surplus of $9.3 billion in November last year. The current account has stayed in surplus for seven consecutive months since May, after recording a deficit in April due to an increase in foreign dividends for the first time in a year.
The cumulative current account surplus from January to November was recorded at $83.54 billion. This is an increase of $55.47 billion compared to the same period last year ($28.07 billion).
Exports, mainly of semiconductor and IT products, expanded while imports declined, thus maintaining the current account surplus. The goods account in November last year recorded a surplus of $9.75 billion, higher than the previous month ($8.12 billion). Exports were $57.1 billion, up 1.2% from the same month last year, while imports were $47.35 billion, down 4.4%. Based on customs clearance in November, semiconductor exports increased by 29.8%, information and communication devices by 8.5%, and steel products by 0.8% compared to the same month last year. Meanwhile, exports of chemicals (-6.8%), machinery and precision instruments (-12.5%), passenger cars (-14.1%), and petroleum products (-18.6%) decreased.
By region, exports to Southeast Asia (9.1%) and the European Union (EU, 0.9%) increased compared to the same month last year. However, exports to China (-0.7%), Japan (-2.4%), and the United States (-5.2%) decreased.
Imports were $47.35 billion, down 4.4% from the same month last year. While the increase in capital goods such as semiconductor manufacturing equipment continued, the decrease in raw materials persisted and consumer goods turned to decrease. On a customs basis in November last year, raw material imports such as petroleum products (-19.4%), chemicals (-17.2%), crude oil (-16.8%), and coal (-12.5%) decreased by 10.2%. Consumer goods like passenger cars (-30.9%) and grains (-10.2%) decreased by 6.3%. On the other hand, imports of capital goods, such as semiconductor manufacturing equipment (77.4%), semiconductors (24.5%), and precision instruments (0.6%), increased by 11.3%.
The service account recorded a deficit of $2.09 billion, focusing on processing services, travel, and other business services. The travel account decreased by $760 million following the disappearance of the effect of China’s National Day holiday in the previous month, which widened the deficit compared to the previous month ($480 million). There was a deficit of $200 million in the transport account.
The primary income account showed a surplus of $1.94 billion, mainly due to interest income, while the secondary income account recorded a deficit of $300 million.
The financial account, showing capital inflow and outflow, saw net assets increase by $9.76 billion in November last year. This was a reduction from the previous month ($12.98 billion). In direct investment, domestic overseas investment increased by $2.84 billion, while foreign investment in domestic markets decreased by $100 million.
In securities investment, domestic overseas investment increased by $390 million, mainly in bonds, while foreign investment in domestic markets decreased by $2.12 billion, focusing on equities.