South Korea’s current account surplus widened in February from a recovery in memory chip exports and reduced deficit in service balance after Koreans were prohibited venturing abroad due to the outbreak of the coronavirus.

The current account surplus in February totaled $6.41 billion, up $2.56 billion from the same month a year ago, according to the Bank of Korea on Tuesday. The surplus figure also expanded sharply from $1.01 billion in January, extending the surplus streak to 10 straight months.

This February had 3.5 more working days compared to last year with the Lunar New Year holiday falling in January this year, contributing to the increase.

Exports gained 4.0 percent on year to $41.82 billion while imports expanded 1.3 percent to $35.24 billion.

Goods account surplus stretched to $6.58 billion in February from $5.42 billion a year ago thanks to brisk sales of memory chips.

Semiconductor and information/communication device shipments jumped 51.3 percent and 27.9 percent, respectively, against the same month last year.

Shipments to China shrank 6.7 percent on year as the country, the epicenter of the COVID-19, grappled with explosive spread.

Service account deficit improved to $1.45 billion in February from $1.54 billion a year ago due to stop in overseas travel. Tourism deficit eased to $570 million from $840 million a year earlier on the plunge in the number of outbound travelers amid the virus outbreaks. The number of foreign visitors to Korea plummeted 43.0 percent on year, while Koreans traveling abroad sank 60.0 percent.

The surplus in primary income account came at $1.25 billion, up from $450 million a year earlier, on growth in dividend collection from overseas investment.

Net assets added $5.5 billion in February. Koreans’ overseas direct investment grew $2.07 billion and that of foreigners $830 million. Korean investment in foreign securities rose $2.87 billion while international investment in local securities grew $370 million.

By Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]