Synopsis
South Korea's current account surplus for 2024 more than tripled year-on-year, reaching $99.04 billion, driven by robust exports and increased dividends. This marks the second-largest surplus ever, exceeding forecasts, with a notable December surplus of $12.37 billion.Key Takeaways
- Current account surplus reaches $99.04 billion in 2024.
- Exports increased by 6.6% year-on-year.
- December surplus hit a record at $12.37 billion.
- Surplus maintained for 20 consecutive months.
- Anticipated surplus of $80 billion in 2025.
Seoul, Feb 6 (NationPress) South Korea's current account surplus for 2024 has more than tripled compared to the previous year, driven by strong exports and higher dividend income, as revealed by the central bank's data on Thursday.
The nation's current account surplus reached US$99.04 billion last year, a significant increase from the $32.82 billion surplus recorded in 2023, according to information from the Bank of Korea (BOK).
This 2024 surplus marks the second-largest amount ever and exceeded the government's prediction of a $90 billion surplus, as reported by Yonhap news agency.
In December alone, the current account surplus was $12.37 billion, the largest figure for any December to date and the third-highest monthly surplus ever.
The BOK noted that its adjusted data indicated that the country has maintained a current account surplus for the 20th consecutive month in December.
Furthermore, the goods account posted a $10.43 billion surplus, marking the 21st consecutive month of surplus.
This surplus was fueled by a 6.6 percent year-on-year increase in exports to $61.38 billion, largely driven by the strong performance of semiconductors. Imports rose by 4.2 percent to $52.87 billion during the same month.
Throughout 2024, exports reached a historic high of $683.8 billion, reflecting an 8.2 percent increase from the previous year.
However, the services account reported a $2.11 billion deficit in December, following a $1.95 billion deficit in the prior month.
This deficit was primarily attributed to the increased demand for overseas travel during the holiday season, as stated by the central bank.
The primary income account, which measures wages of foreign workers, dividend payments from abroad, and interest income, recorded a surplus of $4.76 billion in December, up from $2.41 billion the previous month.
Shin Seung-cheol, the BOK's head of statistics, mentioned in a press briefing, “Exports are expected to remain robust, although a high base effect may lead to a slower growth rate technically.”
The BOK had anticipated in November that South Korea would show a current account surplus of $80 billion in 2025, with plans to release a revised forecast later this month.
Shin also noted that key risk factors for this year's current account include the Donald Trump administration's trade policy and the responses from major nations.
