South Korea's Current Account Swings to Deficit in Nov.

The Bank of Korea announced on Jan. 10 that South Korea’s current account deficit was US$620 million in November last year. Its goods account deficit was US$1.57 billion whereas the deficit was US$1.48 billion in October last year and the surplus exceeded US$6 billion in November 2021.

Goods exports decreased 12.3 percent year on year to US$52.32 billion. The rate of decrease is the highest since May 2020, when the amount dropped 28.7 percent.

On a customs clearance basis, the exports decreased 14 percent year on year. Specifically, semiconductor and consumer electronics exports dropped 28.6 percent and 33.3 percent, respectively. Ship exports plunged more than 69 percent. Goods imports increased 0.6 percent to US$53.88 billion.

The service account deficit was US$340 million. For reference, the deficit was US$270 million in November 2021 and the surplus was US$50 million in October last year.

The primary income account surplus was US$1.43 billion whereas the surplus was US$1.17 billion in the same month of the previous year. The secondary income account deficit was US$140 million.

According to the central bank, South Korea is expected to have recorded a current account surplus in 2022. This is because its current account surplus was US$24.37 billion from January to November last year.

That month, overseas direct investment increased US$3.24 billion and foreign direct investment increased US$550 million. When it comes to securities investment, overseas investment increased US$4.08 billion and foreign investment increased US$1.49 billion.