SEOUL, March 07 (AJP) - South Korea posted a current account surplus for the 21st consecutive month in January, even as exports declined for the first time in 16 months, the central bank reported on Friday.
The surplus reached $2.94 billion in January, closely aligning with the $3.05 billion recorded a year earlier but sharply lower than December’s $12.37 billion, according to preliminary data from the Bank of Korea.
"In January, customs-based exports typically contract due to the base effect of concentrated shipments at the end of the previous year. This year, the surplus narrowed further because of fewer working days during the Lunar New Year holiday," said Song Jae-chang, head of the central bank’s financial statistics department.
"While the current account surplus declined from December due to seasonal factors, the trend of consistent surpluses has persisted for 21 months," he added.
The goods account surplus stood at $2.5 billion in January, down from $4.36 billion a year earlier and $10.43 billion in December. The decline was primarily attributed to a reduced number of working days during the Lunar New Year holiday.
Exports dropped 9.1 percent year-on-year to $49.81 billion, marking their first decline since September 2023, when they fell 1.6 percent. Information technology products, including computers (up 14.8 percent) and semiconductors (up 7.2 percent), continued to post gains, but non-IT sectors such as petroleum products (down 29.2 percent) and passenger cars (down 19.2 percent) saw steeper losses.
Imports also fell 6.2 percent to $47.31 billion. Raw material imports declined 9.8 percent, with coal down 35.5 percent, gas 20.2 percent, and crude oil 5.5 percent, reflecting lower energy prices.
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