South Korea's current account surplus hit an all-time high in February, powered by robust semiconductor exports. However, analysts warn the surplus could narrow in April when rising global oil prices triggered by the Iran war begin to fully impact imports.
According to preliminary balance of payments data released by the Bank of Korea (BOK) on Tuesday, the current account surplus reached $23.19 billion in February. The surplus extended Korea's streak to 34 consecutive months in the black. The cumulative surplus for January-February totaled $36.45 billion, roughly 3.7 times the $9.9 billion recorded in the same period last year.
The surplus expansion was driven by surging exports, particularly in information technology products. The goods account surplus hit a record $23.36 billion in February, with exports reaching $70.37 billion, up 29.9% from a year earlier. On a customs-cleared basis, computer peripherals (183.6%), semiconductors (157.9%), and wireless communication devices (23.0%) posted notable gains. However, some categories including passenger vehicles, machinery, and chemical products underperformed.
Imports ($47 billion) rose just 4%. The modest increase reflected a 2.0% decline in raw material imports, including crude oil (-11.4%) and petroleum products (-21.0%), due to lower energy prices. The impact of the Iran war, which broke out in late February, has not yet been reflected in import statistics. Meanwhile, capital goods imports rose 16.7%, led by telecommunications equipment (53.8%), semiconductor manufacturing equipment (34.2%), and semiconductors (19.1%). Consumer goods imports also increased 13.6%, driven by gold (46.2%) and passenger vehicles (58.6%).
The services account recorded an $1.86 billion deficit. However, the travel account deficit narrowed to $1.26 billion from $1.74 billion the previous month, reducing the overall services deficit compared to the prior month ($3.8 billion) and the same month last year ($3.38 billion).
