In January, South Korea reported a current account surplus of $2.94 billion, reflecting a significant decline from December's surplus of $12.37 billion. This decrease is primarily attributed to a 9.1% drop in exports, amounting to $49.81 billion, as revealed by data from the central bank. Additionally, imports also saw a decline of 6.2%, falling to $47.31 billion, which resulted in a goods account surplus of $2.50 billion. The services account, on the other hand, recorded a deficit of $2.06 billion.
Meanwhile, the primary income account experienced a surplus of $2.62 billion, largely driven by the increase in equity income. Furthermore, in the financial account, net assets surged by $3.72 billion. Notably, portfolio investment assets rose by $12.55 billion, contrasting with a fall in reserve assets, which decreased by $4.55 billion. Moreover, the recent introduction of trade tariffs by the United States on countries including China, Mexico, and Canada has sparked concern among various Asian economies, notably South Korea.
These tariffs, which primarily target sectors such as semiconductors, pharmaceuticals, steel, and aluminum, are projected to impact more than a quarter of exports from South Korean manufacturers, alongside those from Japan, Malaysia, the Philippines, and Taiwan. In response to these developments, South Korea's acting president has mandated a comprehensive review to evaluate the potential repercussions on domestic industries.
This review aims to formulate supportive measures aimed at assisting businesses that could be adversely affected by these trade policies..