Korea's current account surplus hits 2-yr high in Oct. on recovering exports
Containers for exports and imports are stacked at a pier in Korea's largest port city of Busan, Nov. 21, 2022. Yonhap
Korea logged a current account surplus for the sixth straight month in October to hit the largest amount in two years on the back of a trade surplus, a reduction in the service deficit and increased dividend income from overseas, central bank data showed Friday.
The country's current account surplus reached $6.8 billion in October, widening from the surplus of $5.42 billion the previous month, according to preliminary data from the Bank of Korea (BOK).
The October surplus marks the largest since October 2021, when the comparable figure was $7.9 billion.
In the first 10 months of the year, the country's current account surplus reached $23.37 billion, compared with $27.38 billion during the same period of last year.
The central bank expects this year's current account surplus to be roughly in line with its estimate of $30 billion.
October's surplus came as the country's trade balance has remained in the black for seven straight months and dividend income from overseas has increased.
The country's goods account racked up a $5.35 billion surplus in October, following a $7.42 billion surplus the previous month.
The nation's outbound shipments rose 7.6 percent on-year in October to $57 billion, an upturn for the first time in 14 months, while imports declined 4.3 percent over the cited period to $51.65, according to the central bank's data.
"Chip exports rebounded, and exports to China also recovered, signaling that a recovery in exports is increasingly gaining momentum," the central bank said.
The primary income account, which tracks the wages of foreign workers, dividend payments from overseas and interest income, reported a surplus of $2.77 billion in October, following a $1.57 billion surplus in September, the data showed.
The services account deficit also narrowed to $1.25 billion in October from a loss of $3.19 billion the previous month, the data showed.
The central bank said travelers from the Southeast Asian region and Japan increased, while an expected recovery in arrivals from China is being delayed. (Yonhap)