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In March, the commodity balance failed to get out of the red for the sixth consecutive month, but thanks to dividend income, the overall current account balance managed to turn black for the first time in three months.
According to the provisional statistics on the balance of payments released today (10th), the current account balance in March this year was recorded as a surplus of 270 million dollars (about 358.2 billion won).
It is the first surplus in three months after posting two consecutive months of deficits in 11 years in January (-$4.21 billion) and February (-$520 million).
However, the surplus is $6.5 billion less than in March last year ($6.77 billion).
In the first quarter (January-March), the overall current account balance posted a deficit of $4.46 billion.
Compared to a year ago ($14.88 billion), the current account balance decreased by $19.34 billion.
Looking at the itemized balance, the balance of goods was in deficit of $1.13 billion.
Not only was it in deficit for the sixth consecutive month, but the balance of payments plunged by $6.69 billion from a year ago ($5.57 billion).
However, the deficit narrowed from January (-$7.32 billion) and February (-$1.3 billion), which were the largest since the statistics were compiled.
Preferential exports ($56.4 billion) were down 12.6% ($8.16 billion) from March last year.
Earlier, exports in September last year fell for the first time in 23 months from the same month a year earlier, marking the seventh consecutive month of recession.
Due to the impact of the global economic slowdown, semiconductors (-33.8%), chemical products (-17.3%), petroleum products (-16.6%) and steel products (-10.8%) were particularly sluggish, while exports to China (-33.4%), Southeast Asia (-23.5%), Japan (-12.2%) and the EU (-1.2%) contracted.
However, passenger car exports increased by 65.6% from a year ago.
Imports ($57.52 billion) were down 2.5% ($1.47 billion) from a year ago.
In particular, imports of raw materials decreased by 10.0% from the same month last year.
Among commodities, gas, petroleum products and crude oil declined by 25.2%, 19.1%, and 6.1%, respectively.
Semiconductors (-10.8%), other capital goods (-2.4%), grains (-17.3%), household appliances (-3.5%) and other consumer goods (-1.2%) Imports have also shrunk.
The services balance also posted a deficit of $1.9 billion.
From a surplus of $170 million in March last year, the balance of payments shrank by $2.08 billion in one year.
Specifically, the transportation balance, which was a surplus of $1.36 billion a year ago, turned into a $20 million deficit.
This is because the Ship Container Freight Index (SCFI) fell by 80.0% in March over the same period.
As COVID-19 restrictions eased, the travel deficit increased from $450 million to $740 million in one year.
The principal income surplus ($3.65 billion) increased by $2.61 billion from March last year ($1.04 billion).
Among the principal income balances, the dividend income surplus ($3.15 billion) was the most affected, which increased by $2.86 billion from a year ago.
Financial account net assets (assets-liabilities) decreased by $1.38 billion in March.
In terms of direct investment, foreign investment by Koreans increased by $4.52 billion and foreign investment in the country by $2.64 billion.
In securities investment, foreign investment by Koreans increased by $3.02 billion, but foreign investment in the country decreased by $3.33 billion.