Current Account in South Korea

The current account captures South Korea's balance in goods, services, primary income and secondary income against the rest of the world. Korea is a very open, export-led economy with a chronic current-account surplus, making this one of the most closely watched releases for the won. It is compiled by the Bank of Korea.

It is compiled by the Bank of Korea in line with the IMF's BPM6 manual, adding the goods, services, primary income and secondary income balances. It is released in US dollars on a monthly basis and revised in later publications.

A large surplus underpins the won and reflects export strength (semiconductors, cars, chemicals); a narrowing surplus often foreshadows a weaker global cycle and can weigh on the currency. The Bank of Korea watches it as a gauge of external soundness when setting monetary policy.

It is highly volatile month to month owing to the seasonality of dividend payments and technology exports, and it is subject to revisions. The multi-month trend is more informative than any single print.