SOUTH KOREA'S 2018-2022 NATIONAL INCOME
ACCOUNTS AND BALANCE OF PAYMENTS
This presentation analyzes key statistics regarding South Korea's national income accounts
and balance of payments from 2018 to 2022. The data is sourced from the Bank of Korea and
Statistics Korea.
Part 1: South Korea's National Income
Accounts
Part 2: South Korea's Balance of
Payments
•Gross Domestic Product (GDP)
•Current Account Balance and Components
•Income Per Capita
•Financial Account Balance
•Composition of GDP by Expenditure
•International Reserves
EXECUTIVE SUMMARY
National Income
Accounts
• Per capita GDP grew 3%, from
KRW 33.4M to KRW 32.2M
(2018-2022).
• Consumption's GDP
contribution dipped from
64.1% to 67.1%.
• Investment's GDP share rose
from 31.5% to 33.2%.
Balance of Payments
• Current Account went from USD
58B surplus (2018) to USD 30B
deficit (2022), impacted by
trade decline.
• Financial Account consistently
saw surpluses (USD 774.7B to
USD 298.3B), reflecting steady
foreign capital inflow.
• Trade balance crucial in current
account shift.
• Foreign direct investment
major contributor to
International Reserves.
International Reserves
of Korea Rep.
• Sizable levels > USD 400B
annually (2018-2022).
• Anchored by USD, EUR
reserves.
• Reserves shielded against
external vulnerabilities.
South Korea's economy demonstrated steady growth; however, the current account weakened
due to export challenges. Strong financial inflows and reserves outweighed risks to external
stability. The national data was analyzed according to IMF presentation guidelines.
GDP COMPONENTS IN SOUTH KOREA
• Rose from KRW
33,436 (2018) to a
peak of KRW 34,997
(2021), then declined
to KRW 32,254 (2022)
• Dropped from 64.1%
(2018) to 64.3%
(2020), then rose to
67.1% (2022)
• Grew from 31.5%
(2018) to 33.2%
(2022)
• Stable at 16-18% of
GDP annually
•Per Capita
GDP
•Consumptio
n to GDP
•Investment
in GDP
•Government
Spending
• Fluctuated between 1% and 1% due to
external factors
• Upward trend till
2021, slight dip in
2022
• Consumption down,
investment up in GDP
share
• Consistent at 16-18%
of GDP
•Net Exports
•Per Capita
GDP
•Consumptio
n vs.
Investment
•Government
Spending
BALANCE OF PAYMENT
•Initial Current Account
Balance: 76.47 billion
units of currency
(surplus)
• Net Financial Account:
77.47 billion units of
currency (surplus)
•Current Account
Balance: 38.83 billion
units of currency
(surplus)
• Net Financial Account:
29.83 billion units of
currency (surplus)
•Year 2 Current Account
Balance: 59.03 billion
units of currency
(surplus)
• Net Financial Account:
59.68 billion units of
currency (surplus)
•Foreign direct
investment, portfolio
investment, and other
financial transactions
contribute to these
balances.
•A positive balance
indicates a surplus,
meaning South Korea
earned more from its
international
transactions than it
spent.
•A positive balance
indicates a net inflow of
financial assets into
South Korea.
SOUTH KOREA'S INTERNATIONAL RESERVES 2018-2022
•Official reserves assets and other foreign currency assets
were consistently above $400 billion annually.
• Foreign currency reserves (row 1) formed the largest portion within this.
• IMF reserve position (row 2) and SDRs (row 3) also made significant contributions.
• Gold reserves (row 4) remained stable around $4.8 billion per quarter.
• Other reserve assets (row 5) increased from $870 million to over $2 billion.
•South Korea maintained substantial international
reserves, consistently exceeding $400 billion.
• Reserves mainly comprised foreign currency holdings, averaging over $400 billion.
• IMF reserves and SDRs contributed sizably, in the range of $2-3 billion.
• Gold reserves remained steady at about $4.8 billion.
• Other reserves expanded from $870 million to surpass $2 billion by the period's end.
• High reserves provided a buffer against external economic and financial volatility risks.
APPENDIX
Component of Gross Domestic Product
Current and Financial Account Balance
100%
International Foreign Reserves
9E+10
500 000,00
400 000,00
300 000,00
200 000,00
100 000,00
0,00
8E+10
100%
7E+10
100%
15 000,00
10 000,00
5 000,00
0,00
2018
Q2 2018
Q4 2018
Q1 2019
Q4 2019
Q1 2020
Q3 2020
2021
Q2 2021
Q4 2021
Q1 2022
Q3 2022
6E+10
20 000,00
5E+10
4E+10
99%
I. Official reserve assets and other foreign currency assets
(approximate market value)
3E+10
(2) IMF reserve position
2E+10
99%
2018
2019
2020
2021
2022
PER CAPITA GDP
CONSUMPTION AS % GDP
INVESTMENT % GDP
Government Spending % GDP
Net exports % to the GDP
Component of GDP
1E+10
(3) SDRs
0
2018
2019
Current account balance
2020
2021
2022
Net financial account
Current & Financial Account Balance
(4) gold (including gold deposits and, if appropriate, gold
swapped)
(5) other reserve assets
International Foreign Reserves