South Korea’s Current Account Deficit Persisting for the Second Consecutive Month

South Korea’s central bank data showed a current account deficit in February for the second straight month as exports continued to slow.

According to preliminary data from the Bank of Korea (BOK), the country’s current account deficit hit $520 million in February after the country posted a record deficit of $4.21 billion in January.

The change comes after the country posted a $5.87 billion surplus last year.

The deficit formed in February due to the deterioration of the commodity balance due to a decrease in exports and an increase in imports.

Exports fell 6.3% year-on-year in February due to weak demand for semiconductors, which fell 41.5% based on customs clearance.

Exports to China and Southeast Asia decreased by 24.3% and 25% respectively over the same period, while imports increased by 4.6% over the same period.

The data showed that the country posted a $1.3 billion goods account deficit in February, the fifth consecutive deficit.

Source: “Yonhap”

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