Bank of Korea reported May current account surplus reached $38.61 billion, setting a new record. The figure exceeded the previous high of $37.93 billion recorded in March, driven by strong semiconductor exports that surged 167.7% year-over-year. The cumulative January-May surplus totaled $141.28 billion, already surpassing the full-year level of $123.05 billion. Semiconductor and computer peripherals exports propelled the goods balance surplus to $37.86 billion, also exceeding March's previous record of $35.68 billion.
Goods Balance Reaches $37.86 Billion on IT Export Surge
The goods balance surplus stood at $37.86 billion in May, surpassing the previous record of $35.68 billion set in March. Exports totaled $94.34 billion, up 62.9% from the same month last year. Computer peripherals exports jumped 249.4% and semiconductor exports increased 167.7%, while petroleum products rose 49.1% and chemical products gained 11.0%. Machinery and precision equipment exports fell 4.9% and passenger car exports declined 7.5%.
Imports reached $56.48 billion, up 22.2% year-over-year. Petroleum product imports increased 70.5%, semiconductor imports rose 61.1%, and semiconductor manufacturing equipment imports grew 54.9% compared to the same month last year.
Services Account Records $1.09 Billion Deficit with Travel Surplus
The services account posted a deficit of $1.09 billion, centered on other business services and processing services. The travel balance turned to a surplus of $50 million, reversing from deficits in the previous month and the same month last year. The number of inbound visitors increased 19.4% year-over-year, contributing to the surplus conversion.
The intellectual property rights balance, a component of the services account, turned to a surplus of $70 million as imports increased due to seasonal characteristics of mid-quarter months.
The primary income account showed a surplus of $2.17 billion, centered on dividend income of $1.15 billion. This reflected the resolution of seasonality where domestic companies concentrate dividend payments in April. The secondary income account recorded a deficit of $330 million.
Foreign Equity Investment Declines $24.65 Billion
The financial account showed a net asset increase of $31.08 billion. Direct investment by domestic residents in overseas markets increased $4.56 billion, while foreign direct investment in Korea rose $2.69 billion.
In portfolio investment, domestic residents' overseas investment increased $6.24 billion, centered on equities. Foreign investment in Korea decreased $24.65 billion, centered on equities. The decline marked the second-largest outflow on record after March's $34.04 billion decrease.
The equity decline totaled $31.05 billion due to profit-taking following domestic stock price increases, marking the largest outflow on record and exceeding March's $29.33 billion. Debt securities increased $6.4 billion due to inflows tracking the World Government Bond Index (WGBI).
Derivative financial instruments increased $240 million. In other investment, assets expanded $14.31 billion centered on other assets, while liabilities grew $14.5 billion centered on cash and deposits.
FAQ
What was South Korea's current account surplus in May?
South Korea's May current account surplus reached $38.61 billion, setting a new record and exceeding the previous high of $37.93 billion recorded in March.
Why did South Korea's May exports surge?
May exports totaled $94.34 billion, up 62.9% year-over-year, driven by semiconductor exports that increased 167.7% and computer peripherals exports that jumped 249.4% compared to the same month last year.
How much did foreign equity investment in South Korea change in May?
Foreign equity investment in South Korea decreased $31.05 billion in May due to profit-taking following domestic stock price increases, marking the largest outflow on record.
