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South Korea posted its second-largest international trade surplus on record in April, buoyed by a continued boom in semiconductor exports. The country also surpassed $100 billion in cumulative surplus within just four months of the year.
According to provisional balance-of-payments data released by the Bank of Korea on the 5th, the current account surplus for April totaled $28.29 billion (about 43.4 trillion won). It was the second-largest monthly figure, after the previous record of $37.93 billion in March, and marked a 36th consecutive month of surplus—the second-longest such streak in the 2000s.
The cumulative current account surplus over the first four months of the year reached $102.67 billion, 4.3 times the figure for the same period last year ($24 billion).
"From February to April this year, the current account surplus exceeded $20 billion for three consecutive months for the first time ever," said Yoo Seong-uk, head of the Bank of Korea's financial statistics division. "It also surpassed the full-year surplus for 2024 in just four months and is approaching last year's record surplus."
Yoo added, "Compared with the current accounts of major economies, our $74.4 billion surplus in the first quarter ranked second after China." He noted, "Last year we ranked fifth behind China, Germany, Japan and Taiwan, but in the first quarter of this year we overtook Japan, Taiwan and Germany." He continued, "On an annual basis, Taiwan has had a larger surplus than us since 2019, but in the first quarter of this year our surplus was about $12 billion higher."
By item, the goods balance—the largest component—recorded a surplus of $33.88 billion in April. This was also the second-largest surplus on record, after March ($35.68 billion).
Exports ($90.59 billion) surged 54.5% from a year earlier, the second-highest on record. Information and communications technology (ICT) items continued to perform strongly, led by semiconductors and computer peripherals, while non-IT items also grew sharply, partly due to rising petroleum product prices.
By item, on a customs-clearance basis, computer peripherals (411.3%), semiconductors (171.4%), petroleum products (39.4%) and chemical products (10.7%) rose significantly.
By region, exports performed well to Southeast Asia (74.2%), China (62.6%), the United States (54%) and Japan (28.4%). Exports to the Middle East fell (-24.9%).
Imports rose 16.1% to $56.7 billion. The increase continued as oil prices climbed sharply amid the war between the United States and Iran, while imports of capital goods such as semiconductor equipment rose significantly.
By item, semiconductor manufacturing equipment (55.5%), semiconductors (52.8%), coal (26.7%), ICT equipment (23.8%) and chemical products (21.3%) all increased.
The services balance recorded a deficit of $2.42 billion, wider than the previous month's deficit of $1.31 billion.
Within the services balance, the travel balance swung to a deficit of $30 million. In March it had posted a surplus ($140 million)—its first in 11 years and four months—amid the peak spring domestic travel season, before turning back to a deficit. A Bank of Korea official explained, "The number of arrivals to Korea in April also exceeded 2 million, so the deficit improved considerably compared with the same month last year (-$530 million)."
The primary income balance swung from a $3.59 billion surplus in March to a $2.53 billion deficit in April. This was largely driven by a dividend income deficit of $3.02 billion, as dividend payments were concentrated in April due to seasonal factors and major companies increased their overseas dividend payouts.
Net assets in the financial account (assets minus liabilities) increased by $25.46 billion, a smaller gain than in March ($36.99 billion).
In direct investment, Koreans' overseas investment rose by $6.24 billion, while foreigners' domestic investment fell by $1.36 billion.
In portfolio investment, Koreans' overseas investment rose by $8.22 billion, led by equities—a larger increase than in March ($4 billion). The rise reflected greater net purchases of foreign stocks as U.S. markets rebounded.
Foreigners' domestic investment rose by $3.51 billion. Their domestic equity investment narrowed to a $1.24 billion sell-off in April, from a record sell-off of $29.33 billion in March. Foreigners' debt securities investment rose by $4.75 billion on the effects of inclusion in the World Government Bond Index (WGBI).
