April 20, 2024

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[THE INVESTOR] Korea’s current account surplus reached a yearly high in July on the back of solid growth in semiconductor exports, central bank data showed on Sept. 6.

The country’s current account surplus came to US$8.76 billion in July, up from US$7.25 billion a year earlier, according to the preliminary findings by the Bank of Korea.

It is the highest since September last year when the figure stood at US$12.29 billion. Korea has maintained a current account surplus for 77 straight months since March 2012, the data showed.

The goods account surplus rose to US$11.43 billion in July, which is the largest since November last year, as goods exports surged 14.8 percent on-year to US$54.06 billion on the back of rising global demand for semiconductors, according to the central bank. 

The service account remained in the red in July, logging US$3.12 billion in deficit, but it inched down from US$3.29 billion a year ago in line with a reduced travel deficit.

The deficit in the travel account contracted on-year to US$1.48 billion last month from US$1.79 billion thanks to a growing number of visitors from China and Japan.

The primary income account surplus improved to US$1.22 billion in July from US$680 million a year earlier on increased dividend payouts and interest income.

In the financial account, net assets expanded US$10.46 billion in July, according to the data. 

Direct overseas investment by Koreans rose US$2.67 billion last month, and foreigners’ investment at home added US$410 million, the data showed.

In portfolio investment, foreign investors expanded their assets by US$4.73 billion as their obtaining local bonds offset their stock selling amid woes over global trade disputes.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)