April Current Account Surplus Hits $28.3 Billion... Second-Highest on Record Despite Seasonal Foreign Dividend Payments (Update)

Bank of Korea Releases "Preliminary International Balance of Payments for April 2026"

Goods Account Posts 33.88 Billion Dollar Surplus Driven by Semiconductor-Led Export Growth

Primary Income Account Records 3.02 Billion Dollar Deficit Due to Seasonal Dividend Payments

In April, South Korea's current account posted a surplus of 28.29 billion dollars. Although the surplus narrowed compared to the previous month due to concentrated dividend payments to foreign investors, a surge in semiconductor exports drove the goods account to its second-highest level on record.

According to the "Preliminary International Balance of Payments for April 2026" released by the Bank of Korea on June 5, South Korea recorded a current account surplus of 28.29 billion dollars in April. This marked the second-largest surplus in history and the highest ever for the month of April. Although it declined from the previous month, which set an all-time record, it was nearly five times higher than the same period last year (5.7 billion dollars). The current account has remained in surplus for 36 consecutive months since May 2023, the second-longest streak in the 2000s.

The goods account, which accounts for the largest portion of the current account, also posted a surplus of 33.88 billion dollars, the second-highest on record. The surplus decreased from the previous month's all-time high (35.68 billion dollars), but far exceeded the previous year's figure for April (9.78 billion dollars).

Exports reached 90.59 billion dollars, up 54.5% from the same month last year, ranking as the second-highest on record. IT exports performed strongly, led by semiconductors and computer peripherals, while non-IT exports also rose, driven by higher petroleum product prices, maintaining a high growth rate. In April, IT exports based on customs clearance increased by 125.9% year-on-year. Non-IT exports also grew by 10.3% over the same period, with petroleum products up 39.4% and chemical products up 10.7%. However, declines in steel products (-0.6%) and passenger cars (-7.2%) partially offset these gains.

Imports stood at 56.7 billion dollars, representing a 16.1% increase from the same period last year. The sharp rise in oil prices due to the Middle East war, coupled with a significant increase in imports of capital goods such as semiconductors, sustained the upward trend from the previous month. In April, raw material imports based on customs clearance rose by 12.3% year-on-year, driven by increases in coal (26.7%), chemical products (21.3%), petroleum products (3.9%), and crude oil (13.1%). Capital goods imports also surged, with semiconductor manufacturing equipment up 55.5%, semiconductors up 52.8%, and information and communication equipment up 23.8%, resulting in a 27.7% increase from a year earlier. Consumer goods imports rose by 4.9%; durable consumer goods, led by passenger cars and gold, were up 7.4%, while non-durable consumer goods (5.1%) and direct consumer goods (1.3%) also maintained their growth.

The services account, which includes the travel and transport accounts, recorded a deficit of 2.42 billion dollars, expanding from the previous month's deficit of 1.31 billion dollars. The travel account had posted a surplus in March for the first time in 136 months due to the spring domestic travel season, but returned to a deficit of 300 million dollars in April, just one month later.

The primary income account recorded a deficit of 2.53 billion dollars, mainly due to dividend income. The dividend income account posted a deficit of 3.02 billion dollars, as seasonal dividend payouts and an increased dividend payout ratio by major companies widened the deficit.

Net external assets in the financial account, which is calculated as assets minus liabilities, increased by 25.46 billion dollars, narrowing the growth compared to the previous month (36.99 billion dollars). Direct investment rose by 6.24 billion dollars due to increased overseas investment by domestic residents, while foreign investment in Korea decreased by 1.36 billion dollars. In securities investment, Korean residents' overseas investment, mainly in stocks, increased by 8.22 billion dollars. Foreign investment in Korea decreased in stocks but increased by 3.51 billion dollars in bonds, driven by Korea's inclusion in the World Government Bond Index (WGBI). Derivatives decreased by 1.51 billion dollars. Other investments saw assets increase by 8.87 billion dollars, mainly in cash and deposits, while liabilities fell by 4.78 billion dollars, mainly due to decreased borrowing. Reserve assets increased by 1.02 billion dollars.

This content was produced with the assistance of AI translation services.