July 25, 2021

South Korea's current surplus widened by 39.9% in August

South Korea's current surplus widened by 39.9% in August

South Korea's current account surplus increased by 39.9% year-on-year in August to 8.44 billion dollars (7,319 million euros) thanks to strong sales abroad, the Bank of Korea (BoK) reported today.

The figure represents the seventy-eighth month of positive balance for the South Korean current account balance.

The August surplus was, however, 3.6% lower than that recorded in July, when the positive balance was 8,760 million dollars (7,595 million euros).

The goods account recorded a surplus of 11,240 million dollars (9,743 million euros), 24.4% more than in August 2017, thanks to the increase in world demand for semiconductors.

The service account, which measures the payments for export and import of services, remained in red in August and registered a deficit of 2,110 million dollars (1,828 million euros), although it managed to reduce the balance by 9.4% year-on-year. negative.

Specifically, the deficit of the travel account increased by 9.2% to 1,540 million dollars (1,335 million euros) compared to the eighth month of 2017 due to the fact that a greater number of South Korean tourists traveled abroad during the summer holidays .

Some 2.5 million South Koreans traveled out of the country only in August, the second highest monthly figure, while 1.39 million foreign tourists arrived in the Asian country in that month.

The surplus of the primary income account totaled 50 million dollars (43 million euros), 150% more year-on-year, while the balance of secondary income registered a net capital outflow of 730 million dollars (632 million euros) .

The balance of payments reflects payments and income from foreign trade in goods, services, income and transfers, and is considered one of the broadest trade indicators in a country.


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