Bank of Korea releases April balance of payments data

Goods balance also posts second-highest figure on record

Non-IT exports sustain strong growth momentum

Dividend payments push primary income into deficit

A DDR5 DRAM module for laptops, photographed against the backdrop of Samsung Electronics' Seocho-gu headquarters in Seoul. [Herald DB]
A DDR5 DRAM module for laptops, photographed against the backdrop of Samsung Electronics' Seocho-gu headquarters in Seoul. [Herald DB]

By Kim Byeo-ri, The Herald Business

South Korea's current account surplus reached $28.29 billion in April, extending its streak of consecutive monthly surpluses to 36 months, driven by strong semiconductor exports.

The Bank of Korea released its preliminary balance of payments data for April on Friday, showing the $28.29 billion surplus was down 25.4 percent from the all-time record of $37.93 billion set in March, but still ranked as the second-highest figure on record.

The 36-month run of surpluses marks the second-longest such streak since the 2000s.

By category, the goods balance came in at $33.88 billion — also the second-highest on record, following March. Exports rose 54.5 percent year-on-year to $90.59 billion, while imports climbed 16.1 percent to $56.7 billion.

The Bank of Korea said IT products led export growth, with semiconductors and computer peripherals performing particularly well, while non-IT goods also sustained strong gains as rising petroleum product prices boosted shipment values.

Customs-based export data showed IT exports surged 125.9 percent year-on-year in April, led by computer peripherals (up 411.3 percent), semiconductors (up 171.4 percent) and wireless communication devices (up 5.5 percent). Non-IT exports rose 10.3 percent, driven by petroleum products (up 39.4 percent) and chemicals (up 10.7 percent).

On the import side, the Bank of Korea said oil prices rose sharply amid the Iran war, while capital goods — including semiconductors and manufacturing equipment — also expanded significantly. Customs data showed capital goods imports climbed 27.7 percent year-on-year, led by semiconductor manufacturing equipment (up 55.5 percent) and semiconductors (up 52.8 percent). Raw materials and consumer goods rose 12.3 percent and 4.9 percent, respectively.

The services balance posted a deficit of $2.42 billion in April, a slight improvement from the $2.7 billion deficit a year earlier. The travel balance also narrowed sharply, from a deficit of $530 million to just $30 million. The Bank of Korea attributed the improvement to inbound visitor numbers exceeding 2 million in April.

The primary income balance swung to a deficit of $2.53 billion, as the seasonal concentration of dividend payments in April combined with higher payout ratios at major companies pushed the dividend balance to a deficit of $3.02 billion. The secondary income balance also recorded a deficit of $640 million.

On the financial account, net assets totaled $25.46 billion in April, down 31.2 percent from $36.99 billion the previous month.

In direct investment, South Korean residents increased overseas investment by $6.24 billion, while foreign investment in South Korea fell by $1.36 billion. In portfolio investment, residents expanded overseas holdings by $8.22 billion, centered on equities — net equity purchases rose roughly 50 percent from the previous month's $3.94 billion to $5.9 billion, reflecting a rebound in US stock markets. Foreign portfolio investment in South Korea increased by $3.51 billion. In equities, foreign net selling narrowed sharply to $1.24 billion from the record $29.33 billion in March, as easing tensions in the Middle East and solid earnings from domestic chipmakers improved investor sentiment. Debt securities swung to an increase of $4.75 billion, driven by South Korea's inclusion in the WGBI (World Government Bond Index).

Elsewhere, financial derivatives fell by $1.51 billion. In other investment, assets rose $8.87 billion, centered on cash and deposits, while liabilities fell $4.78 billion, mainly due to reduced borrowing. Reserve assets increased by $1.02 billion.


kimstar@heraldcorp.com