South Korea achieved its largest July current account surplus on record, reaching $10.78 billion, marking the 27th consecutive month of surplus since May 2023 - one of the longest streaks this century. This sustained strength underscores the underlying resilience of Asia’s fourth-largest economy. Export performance was a key driver. The goods account recorded a $10.27 billion surplus, supported by a 2.3 percent year-on-year rise in exports, which totaled $59.78 billion, while imports declined slightly. Semiconductor exports surged by 30.6 percent, and ship exports skyrocketed by 114 percent. Increases in shipments to Southeast Asia (17.2 percent) and the European Union (8.7 percent) also helped offset declines to Japan (-4.7 percent) and China (-3 percent). Equity income — earnings from overseas investments — also boosted the surplus. The primary income account (which includes wages of foreign workers, dividends, and interest) posted a $2.95 billion surplus in July. However, not all segments contributed positively. The services account suffered a $2.14 billion deficit, largely driven by increased overseas travel demand. Meanwhile, new U.S. tariffs imposed in August have begun to weigh on exports of automobiles, auto parts, and steel, with shipments to the U.S. falling 12% in August — the steepest drop since 2020. The impact is being felt unevenly across the economy. While large conglomerates such as Samsung and Hyundai can redirect sales toward Europe or Australia, small and medium-sized enterprises (SMEs) are more vulnerable. With weaker Chinese demand and tighter U.S. trade barriers, SMEs face tougher challenges, lacking the scale and flexibility of major chaebol to adapt quickly. (ICE SEOUL)

Fonte notizia: KOREA JOONGANG DAILY