South Korea's April current account surplus hits record $28.29 billion, second-highest ever

South Korea's current account surplus hit $28.29 billion in April, marking the second-highest monthly surplus ever recorded. This sustained positive balance, now in its 36th consecutive month, is the longest streak since the year 2000, surpassing previous records. The strong performance is largely attributed to robust exports, particularly in the semiconductor sector.

Exports in April climbed by 48.0% year-on-year to $85.87 billion. Semiconductor exports alone saw a dramatic increase of 171.4%, reaching $32.04 billion. Information and communication technology equipment exports also grew significantly, up 123.2% to $6.56 billion. Other sectors like petroleum products and ships also contributed to the export boom, with increases of 39.4% and 49.9% respectively. Exports to Southeast Asia led the regional gains, rising 74.2%, followed by China (62.6%) and the United States (54.0%).

Despite the export strength, imports also rose by 16.7% to $62.11 billion. This increase was driven by higher imports of raw materials, capital goods, and consumer goods. Notably, crude oil imports increased by 13.1% to $7.03 billion, and imports of semiconductor manufacturing equipment and semiconductors themselves also saw substantial growth. The Bank of Korea attributed the continued import growth to rising oil prices due to the U.S.-Iran conflict and increased imports of capital goods like semiconductors.

The trade balance, the difference between exports and imports, recorded a surplus of $33.88 billion, the second-largest on record. However, the services account registered a deficit of $2.42 billion, primarily due to deficits in research and development services and processing services. The travel balance also shifted from a slight surplus to a deficit of $30 million. Other income and current transfers also contributed to deficits, resulting in an overall current account surplus.