SEOUL- South Korea posted a current account deficit in April for the first time in a year, central bank data showed on Tuesday, on seasonal factors such as companies’ dividend payouts to foreigners.
The current account balance logged a deficit of $0.29 billion in April, swinging from a surplus of $6.93 billion in March. It was the first monthly deficit since April 2023, when the balance stood at a deficit of $1.37 billion, according to the Bank of Korea.
The balance of goods posted a surplus of $5.11 billion, while that of services was at a deficit of $1.66 billion. The balance of primary income swung to a deficit of $3.37 billion on a seasonal factor of large dividend payouts to foreigners, the BOK said.
South Korea’s exports rose for an eighth straight month in May, led by robust chip sales though overall growth in shipments lagged market expectations, trade data showed.
Overseas sales by Asia’s fourth-largest economy rose 11.7 percent year-on-year to $58.15 billion, a 22-month high, slowing from a gain of 13.8 percent in the prior month and undershooting a rise of 14.2 percent tipped in a Reuters survey of economists.
Exports of chips grew for a seventh consecutive month, rising 54.5 percent, along with gains in other IT products such as display panels, computers and wireless communication devices. Exports of automobiles rose 4.8 percent, while ships surged 108.4 percent.
By destination, exports to the United States rose for a 10th month, up 15.6 percent, while China-bound shipments extended gains for a third straight month by rising 7.6 percent to $11.4 billion, a 19-month high. It was the first time in four months that shipments to China had exceeded those to the United States.
“Exports are building a strong upward momentum,” said trade minister Ahn Duk-geun. “The government will provide all-out support for the upward trend to continue through the year-end.”
