South Korea’s current account surplus more than triples in 2024: BOK
Seoul, Feb 6 (IANS/WISHAVWARTA) South Korea’s current account surplus for 2024 more than tripled from a year earlier, led by strong exports and increased dividend income, central bank data showed on Thursday.
The country’s current account surplus reached US$99.04 billion last year, following a surplus of $32.82 billion in 2023, according to the data from the Bank of Korea (BOK).
The 2024 figure marked the second-largest amount ever and surpassed the government’s forecast of a surplus of $90 billion, reports Yonhap news agency.
In December alone, the current account surplus amounted to $12.37 billion, which marked the largest reading for any previous December, and the third-highest monthly figure ever.
The BOK said its adjusted data showed that the country has reported a current account surplus for the 20th consecutive month in December.
In December, the goods account logged a $10.43 billion surplus, marking the 21st consecutive month of surplus.
The surplus came as exports advanced 6.6 percent on-year to $61.38 billion on the robust sales of semiconductors. Imports added 4.2 percent to $52.87 billion in the month.
For the entire year of 2024, exports set a new record of $683.8 billion by rising 8.2 percent on-year.
The services account, however, registered a $2.11 billion deficit in December, following a $1.95 billion deficit a month earlier.
The deficit was due largely to rising demand for overseas travel during the vacation season, according to the central bank.
The primary income account, which tracks the wages of foreign workers, dividend payments from overseas and interest income, logged a $4.76 billion surplus in December, compared with the previous month’s $2.41 billion surplus, the data showed.
“Exports are expected to remain robust, though a high base effect would lead to a slower growth rate technically,” Shin Seung-cheol, the BOK’s head of statistics, told a press briefing.
In its forecast presented in November, the BOK expected South Korea to report a current account surplus of $80 billion in 2025. The central bank plans to announce a revised outlook later this month.
“Primary risk factors in terms of this year’s current account are the Donald Trump administration’s trade policy and responses from major nations,” Shin noted.
