ANN/THE KOREA HERALD – South Korea’s current account surplus surged to a record high of USD99.04 billion in 2024, a threefold increase from the USD32.82 billion surplus recorded in 2023, according to data released by the Bank of Korea (BOK) yesterday.
The significant surge was driven by robust export performance and increased dividend income.
The 2024 figure marked the second-largest amount ever and surpassed the government’s forecast of a surplus of USD90 billion.
In December alone, the current account surplus amounted to USD12.37 billion, which marked the largest reading for any previous December, and the third-highest monthly figure ever.
The BOK said its adjusted data showed that the country has reported a current account surplus for the 20th consecutive month in December.
In December, the goods account logged a USD10.43 billion surplus, marking the 21st consecutive month of surplus.
The surplus came as exports advanced 6.6 per cent on-year to USD61.38 billion on the robust sales of semiconductors. Imports added 4.2 per cent to USD52.87 billion in the month.
For the entire year of 2024, exports set a new record of USD683.8 billion by rising 8.2 per cent on-year.
The services account, however, registered a USD2.11 billion deficit in December, following a USD1.95 billion deficit a month earlier.
The deficit was due largely to rising demand for overseas travel during the vacation season, according to the central bank.
The primary income account, which tracks the wages of foreign workers, dividend payments from overseas and interest income, logged a USD4.76 billion surplus in December, compared with the previous month’s USD2.41 billion surplus, the data showed.
“Exports are expected to remain robust, though a high base effect would lead to a slower growth rate technically,” BOK’s head of statistics Shin Seung-cheol told a press briefing.
In its forecast presented in November, the BOK expected South Korea to report a current account surplus of USD80 billion in 2025. The central bank plans to announce a revised outlook later this month.
“Primary risk factors in terms of this year’s current account are the Donald Trump administration’s trade policy and responses from major nations,” Shin noted.
