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▲ Monthly checking account (data provided = Bank of Korea)
With a current account surplus of more than $ 7 billion, it posted the largest surplus in nine months since October last year. The current account surplus, which rose to the low of $ 7 billion in June, expanded to surplus once again in July when the economic lockdown measures were launched following the new coronavirus infection (Corona 19).
According to the Bank of Korea on the 4th, the scale of the current account surplus in July was $ 7.45 billion, an increase of $ 870 million (13.2%) over the same month last year. Compared to the previous month, it also increased by $ 570 million (8.3%).
By category, the commodity balance increased to $ 6.97 billion, an increase of $ 790 million (12.8%) from $ 6.18 billion in the same month last year. Exports decreased by $ 5.22 billion (10.8%) to $ 43.2 billion, and imports decreased by $ 6.101 million (14.2%) to $ 36.3 billion.
Exports have been declining for the fifth month, mainly of petroleum products and auto parts. In fact, when looking at the export price index for July, petroleum products were negative (-) 36% and auto parts -0.3%.
Imports also decreased for five consecutive months and continued to decline, mainly of raw materials, due to weak energy prices such as oil and gas.
By customs clearance standards, exports fell 7.1% to $ 4.83 billion. Petroleum derivatives (-42.7%), passengers and spare parts (-10.6%) decreased, while information and communication devices (9.4%) and semiconductors (5.5%) increased.
Revenue fell 11.6% to $ 3.89 billion. Imports of capital goods increased 7.2%, while raw materials (-25.6%) and consumer goods (-7.6%) decreased.
The deficit in the balance of services fell by $ 440 million to $ 1.1 billion. The travel balance deficit was improved by $ 760 million. The main income account surplus was $ 1.95 billion, down $ 520 million.
The financial account posted an increase in net worth of $ 9.59 billion. This means that the amount of investments made abroad in Korea was greater than the amount invested in Korea from abroad.
Foreign direct investment by Koreans increased by $ 3.15 billion and domestic investment by foreigners increased by $ 830 million. In the case of the securities sector, foreign investment by Koreans increased by $ 4.67 billion and domestic investment by foreigners increased by $ 5.08 billion.
In particular, foreign investment in Korean securities has increased for 4 consecutive months since April. The BOK explained that it was affected by the strength of the stock markets of the main countries.
“The management is not bad because the surplus for July increased,” said Lee Seong-ho, head of the bank’s financial statistics department. “In general, it is true that exports and imports have decreased. In the case, imports of capital goods increase, but there was a factor due to the fall in international prices of raw materials.
