South Korea logs current account surplus for 22nd month in Feb

Seoul, April 8 (IANS) South Korea logged a current account surplus for the 22nd consecutive month in February on rising exports, central bank data showed on Tuesday.

The country's current account surplus reached US$7.18 billion in February, following a $2.94 billion surplus the previous month, according to the data compiled by the Bank of Korea.

It marked the third-largest surplus ever for any February. The country has reported a current account surplus every month since May 2023, reports Yonhap news agency.

The goods account logged an $8.18 billion surplus in February, marking the 23rd consecutive month of surplus.

The surplus came as exports climbed 3.6 percent on-year to $53.79 billion. Outbound shipment of computers, cars and bio-health items led the upturn, while exports of semiconductors and petroleum products went down in February.

Imports gained 1.3 percent on-month to $45.61 billion. The services account, however, registered a $3.21 billion deficit due largely to rising demand for overseas travel, according to the central bank.

The primary income account, which tracks the wages of foreign workers, dividend payments from overseas and interest income, logged a $2.62 billion surplus in February.

"Longer-term uncertainty has heightened and concerns about an economic slowdown have grown following the new U.S. tariff policy, and local exports are expected to be affected, particularly sales of vehicles, auto parts and steel products," BOK official Song Jae-chang told a press briefing.

U.S. President Donald Trump's administration pledged to impose "reciprocal" tariffs on imports from most of the world, including 25 percent duties on South Korean goods, which are set to take effect Wednesday (U.S. time).

He also implemented a 10 percent "baseline" tariff on foreign imports Saturday, leading to pledges of retaliatory tariffs by China and others.

In 2024, the country reported a current account surplus of $99.04 billion, marking a sharp increase from a surplus of $32.82 billion the previous year, the BOK said.

—IANS

na/