SEOUL- South Korea’s current account posted the biggest monthly surplus in almost seven years in June, thanks to robust exports, central bank data showed on Wednesday.
The current account balance in June stood at a surplus of $12.26 billion, widening from a surplus of $8.92 billion in May to the biggest since September 2017.
The balance of goods logged a surplus of $11.47 billion, the biggest since September 2020, as exports rose and imports fell, according to the Bank of Korea.
South Korea’s exports rose at the fastest pace in six months in July on strong chip sales but missed market expectations, trade data showed, amid worries about a sustained recovery in China demand.
Overseas sales by Asia’s fourth-largest economy rose 13.9 percent year-on-year to $57.49 billion, after a 5.1 percent rise the previous month and marking the fastest growth since January.
It was, however, weaker than an 18.4 percent increase tipped in a Reuters survey of economists.
Exports of semiconductors grew for the ninth consecutive month, rising 50.4 percent, along with gains across other IT products, but automobiles fell 9.1 percent due to earlier summer vacation periods at major auto firms.
By destination, exports to the United States rose for the 12th straight month, up 9.3 percent, while China-bound shipments jumped 14.9 percent to a 21-month high of $11.4 billion.
“Last month was somewhat disappointing, even after taking base effects into account,” said Park Sang-hyun, chief economist at HI Investment Securities.
“Exports momentum is seen weakening. China will be key, but recent signs raise doubts over whether its economic recovery will be sustained.”
China’s manufacturing activity weakened in July as factories grappled with falling new orders and low prices, a survey showed on Wednesday, pointing to a grinding second half for the world’s production powerhouse.
“Exports got off to a good start in the second half of the year,” trade minister Ahn Duk-geun said, reaffirming the government’s goal to achieve record-high exports this year.
