Strong exports of semiconductors and information communication devices
Improved service account deficit of $11.7 billion
Foreign securities investment increased for 6 consecutive months
[서울=뉴스핌] Reporter Baek Ji-hyun = Exports increased and converted in one month, and the current account continued a surplus for seven consecutive months.
According to the’International Balance for November 2020 (provisional)’ announced by the Bank of Korea on the 8th, the current account recorded a surplus of $8.97 billion, an increase of $3 billion from the same month last year. Compared to the same month last year, the surplus expanded for six consecutive months, but failed to make a surplus of $1 million for three consecutive months following September and October.
Cumulatively from January to November last year, it was $63.4 billion, an increase of $8.3 billion from the previous year. This is expected to achieve the BOK’s forecast of $65 billion a year.
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The goods account surplus for November was $7.39 billion, an increase of $2.15 billion from the same month last year.
Exports turned positive (+) to 47.72 billion dollars, an increase of 520 million dollars from the same month last year. Daily average exports also increased for the second consecutive month to $2.04 billion, a 3.3% increase from the same month last year. By item, semiconductors (+16.4%), information and communication devices (+23.8%), and chemicals (+10.2%) increased. On the other hand, machinery, precision equipment and petroleum products stepped backward by 6.1% and 49.1%, respectively. Exports to the US and EU increased for the third consecutive month, and Southeast Asia, China, and Latin America also increased.
Meanwhile, income decreased for two consecutive months compared to the previous year. Due to weak energy prices, it decreased mainly in raw materials. Looking at customs clearance in November, capital goods and consumer goods increased by 13.5% and 15.3%, respectively, compared with the previous year, while raw materials shrank by 17.8%.
The service balance showed a decrease of 96% in the number of immigrations due to restrictions on cross-border movement, while the deficit decreased by $1.17 billion from the same month of the previous year to $720 million. The travel balance decreased by $450 million from the same month last year.
The transportation balance recorded a surplus of $400 million and turned to a surplus from a deficit of $210 million in the same month last year. Air passenger transportation revenue decreased, but sea and air cargo transportation revenue increased. Transportation revenue increased by $160 million to $2.36 billion.
The main income account surplus was $420 million, which was a decrease of $550 million from the same month last year. This is because dividend payments to foreign direct investment corporations increased as the dividend income balance turned to deficit.
The financial account representing capital inflows and outflows represented an increase in net worth of $8.95 billion. Direct investment increased by $2 billion in net worth, while securities investment increased by $58,000. Securities investment by Koreans increased by US$ 9.41 billion, a plus for the eighth consecutive month. Overseas stock investment has expanded mainly with other financial institutions, while overseas bond investment has continued to increase, mainly with institutional investors.
Foreign investors’ domestic securities investment increased by $4.32 billion in net assets from the previous year’s decline. This is an increase for six consecutive months. Foreign investment in stocks expanded due to the easing of uncertainties related to the US presidential election and improving investment sentiment due to anticipation of the Corona 19 vaccine, and foreign bond investment has turned to a decline.