In October, South Korea's current account achieved a remarkable surplus of $9.78 billion, as revealed by preliminary figures from the Bank of Korea. This impressive outcome was primarily attributed to a significant rise in goods exports alongside a decline in imports. The goods account alone recorded an $8.12 billion surplus, driven by a 4% year-on-year increase in exports totaling $60.08 billion, contrasted with a slight 0.7% dip in imports, which reached $51.96 billion. The services account illustrated a different narrative, posting a $1.73 billion deficit, largely due to shortcomings in both manufacturing and various business services.
Conversely, the primary income account benefitted from an increasing trend, achieving a surplus of $3.45 billion, buoyed by higher equity income. On the other hand, the secondary income account revealed a minor deficit of $50 million. October also saw a net increase of $12.98 billion in net assets under the financial account.
Notably, direct investment assets experienced a rise of $280 million, although liabilities increased by $2.25 billion, leading to an overall net decrease of $1.96 billion. Portfolio investment assets surged by $2.91 billion, significantly outpacing a $1.20 billion rise in liabilities, resulting in a net increase of $1.72 billion.
Despite a small net decrease of $4.3 million in financial derivatives, other investments reported a strong net increase of $14.67 billion, with assets growing by $7.01 billion and liabilities declining by $7.66 billion. However, reserve assets fell by $1.44 billion over the month. For the first ten months of 2024, South Korea's cumulative current account surplus has reached $74.24 billion, showcasing resilient export performance amid persistent global economic challenges..