S. Korea posts US$ 5.7 bil. current account surplus in April, extending two-year streak

On a positive note.

South Korea's current account remained in the black in April but the surplus stood substantially lower on month amid the U.S.'s tariff campaign.

Shin Se-byuck has the latest numbers.

South Korea posted a current account surplus of 5-point-7 billion U.S. dollars in April.

That marks 24 consecutive months in the black since May 2023.

According to data released by the Bank of Korea on Tuesday, the surplus shrank sharply from the previous month's 9-point-1 billion dollars.

But it was still a notable jump from the 1-point-5 billion dollar surplus recorded a year earlier.

The decline was mainly driven by a sharp reversal in the dividend income balance, which swung from a 2-point-6 billion dollar surplus in March to a 650 million dollar deficit due to concentrated payouts to foreign investors.

April's goods account, the largest component of the current account, posted a surplus of around 9 billion dollars, backed by solid export performance.

Exports rose nearly 2 percent on-year to 58-point-6 billion dollars, led by semiconductors and wireless devices.

IT exports jumped almost 11 percent, while auto exports fell by just over 4 percent.

Imports, meanwhile, fell 5-point-1 percent to nearly 50 billion dollars, largely due to lower global energy prices, including coal and crude oil.

The services account remained in deficit, posting a 2-point-8 billion dollar shortfall in April, a wider gap than the previous month, as Korean firms spent more on tech licensing, consulting, and platform services.

In the first four months of the year, the cumulative current account surplus reached nearly 25 billion dollars, up almost 7 billion from the same period last year.

But one expert pointed out that these figures reflect the period before new U.S. tariffs took effect, and warned the surplus could narrow further in the months ahead.

"Lower energy prices may ease imports, but Trump's tariffs could hit exports harder, narrowing the surplus compared to last year."

He also noted that, with the global economy slowing, a sharp rise in stock prices is unlikely, and that gains in the primary income account are also likely to remain limited, further narrowing the overall surplus.

Shin Se-byuck, Arirang News.