Containers are stacked at a port in Busan, Dec. 1. Yonhap
Korea’s present account surplus narrowed sharply from a month earlier as exports fell, primarily on account of fewer working days attributable to the Chuseok vacation, central financial institution information confirmed Friday.
The nation’s present account surplus got here to $6.81 billion in October, down from $13.47 billion a month earlier, based on information from the Financial institution of Korea (BOK).
However the information marked the thirtieth consecutive month of surplus because the nation has maintained a present account surplus each month since Could 2023, representing the second-longest surplus streak ever.
In the course of the first 10 months of this yr, the cumulative surplus totaled $89.58 billion, in contrast with $76.63 billion throughout the identical interval final yr, the BOK stated.
The products account posted a surplus of $7.82 billion in October, narrowing from the earlier month’s $14.24 billion surplus, as exports fell 4.7 p.c on-year to $55.88 billion on account of fewer working days amid the prolonged Chuseok vacation.
Imports additionally declined 5 p.c to $48.06 billion.
This yr’s vacation ran from Oct. 3-9 as Chuseok, the Korean fall harvest pageant, fell between two nationwide holidays — Nationwide Basis Day on Oct. 3 and Hangeul Day on Oct. 9, which marks the creation of the Korean alphabet.
The companies account recorded a deficit of $3.75 billion due primarily to a surge in abroad journey demand.
The first earnings account, which incorporates wages of overseas employees in addition to dividend and curiosity earnings from overseas, posted a surplus of $2.94 billion in October, pushed by a rise in fairness earnings.
The secondary earnings account recorded a deficit of $190 million, the info confirmed.
Within the monetary account, web belongings elevated by $6.81 billion in October.
Intimately, abroad direct funding by Korean residents rose by $1.88 billion, whereas overseas direct funding into Korea elevated by $150 million, leading to a web enhance of $1.73 billion.
In portfolio funding, abroad funding by native residents jumped by $17.27 billion, led by a surge in fairness funding, whereas overseas funding into Korean shares additionally rose by $5.2 billion, resulting in a web enhance of $12.08 billion, based on the BOK.
