A Surplus for the 10th Consecutive Month
The Bank of Korea announced on April 7 that South Korea’s current account surplus was US$8.03 billion in February this year, the surplus increased US$1.62 billion compared to February 2020, and South Korea posted a surplus for the 10th consecutive month.
The goods account surplus decreased from US$6.6 billion to US$6.05 billion in one year as imports increased more than exports. Specifically, the former increased 12.6 percent while the latter increased 9.2 percent. The rate of increase in imports exceeded 10 percent for the first time since October 2018.
The service account surplus was US$130 million, the first surplus since November 2014, whereas the deficit amounted to US$1.44 billion in February 2020. “The transport account surplus increased to US$810 million to improve the overall service account,” the central bank explained, adding, “The travel account deficit fell from US$470 million to US$340 million, too.”
The net assets on the financial account indicating capital inflow and outflow increased US$7.43 billion in February this year. South Korea’s overseas direct investment increased US$3.33 billion whereas the foreign direct investment in South Korea fell US$130 million.
South Korean investors’ overseas stock and bond investments increased US$9.38 billion, led by non-financial companies and institutional investors, respectively. The overseas securities investment increased for the 11th consecutive month. Foreigners’ securities investment in South Korea rose US$7.02 billion. Especially, the bond investment jumped more than US$10.2 billion to show the highest rate of increase since November 2007, when it spiked US$11.04 billion.