Korea continues its streak of trade surplus for 11 months

Driven by the surge in semiconductor exports, South Korea continued its streak of trade surplus for the 11th consecutive month.

According to preliminary figures released by the Bank of Korea on Thursday, the current account surplus for March amounted to $6.93 billion. This marks the 11th consecutive month of surplus since switching to surplus in May last year. The scale of surplus also increased compared to February ($6.86 billion).

Exports, totaling $58.27 billion, led the trade surplus, increasing by 3% compared to the same period last year. Semiconductor exports saw a rise of 34.5%, along with a 7.9% increase in exports of information and communication devices. Geographically, exports showed a positive trend in Southeast Asia (12.7%) and the United States (11.6%). Imports decreased by 13.1% to $50.18 billion, attributed to lower energy prices. With the simultaneous increase in exports and decrease in imports, the merchandise trade surplus for March reached $8.09 billion, the highest monthly figure since September 2021 ($9.54 billion).

With semiconductor-led export recovery, the current account surplus for the first quarter of this year reached $16.84 billion. This accounts for over 85% of the forecasted surplus for the first half of the year, which stands at $19.8 billion. There are speculations that the annual current account surplus target could be revised upwards due to the faster-than-expected export recovery. However, recent geopolitical crises in the Middle East, increased volatility in international oil prices, and the won-dollar exchange rate are considered major uncertainties. "There is a possibility of revising the annual forecast if the first quarter surplus exceeds expectations," said Shin Seung-cheol, Director of the Economic Statistics Department at the Bank of Korea. "The crude oil import prices began to rise in April, and the exchange rate volatility also remains high, so we need to continue to watch.”


이동훈 기자 dhlee@donga.com