S. Korea Posts Record July Current Account Surplus On Robust Exports: BOK

(MENAFN- IANS) Seoul, Sep 4 (IANS) South Korea logged the largest current account surplus for any July driven by solid exports and an increase in income from equity, central bank data showed on Thursday.

The country's current account surplus reached US$10.78 billion in July, extending its surplus streak to the 27th consecutive month, according to data compiled by the Bank of Korea (BOK), reports Yonhap news agency.

South Korea has reported a current account surplus every month since May 2023.

While it marked the highest July figure on record, the surplus narrowed from the all-time monthly high of $14.27 billion posted in June.

During the first seven months of this year, the cumulative current account surplus stood at $60.15 billion, compared with $49.21 billion recorded during the same period last year.

The goods account logged a $10.27 billion surplus in July, as exports advanced 2.3 percent from a year earlier to $59.78 billion, while imports edged down 0.9 percent to $49.51 billion.

The services account registered a $2.14 billion deficit due mainly to rising demand for overseas travel, according to the report.

The primary income account, which tracks the wages of foreign workers, dividend payments from overseas and interest income, logged a $2.95 billion surplus in July, the data showed.

"The new U.S. tariff policies have begun to affect exports, particularly shipments of automobiles, auto parts and steel products," BOK official Song Jae-chang said during a press briefing. "As reciprocal tariffs took effect in August, the impact is expected to become increasingly apparent."

Semiconductor exports are projected to remain strong through next year, while automakers are working to diversify export markets beyond the U.S., targeting such regions as the European Union and Australia to mitigate the impact of U.S. tariffs, he added.

-IANS

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