South Korea Posts Record July Current Account Surplus

South Korea experienced its largest-ever July current account surplus, reaching $42.08 billion, according to preliminary balance of payments data released by the Bank of Korea on September 4. This marked the 39th consecutive month of surplus since May 2023, with the cumulative surplus reaching $233.09 billion from January through July.

Goods exports were the primary driver, surging 65.3% from a year earlier to $100.45 billion, with semiconductor exports alone growing 176.3%. This led to exports surpassing $100 billion for two consecutive months. Exports to key markets like China, Southeast Asia, and the United States also increased significantly. Imports rose 21.7% to $60.02 billion but lagged behind export growth.

The services account recorded a deficit of $1.97 billion, mainly due to a decline in passenger car imports. The primary income account, boosted by stronger operating profits of domestic semiconductor companies, recorded a surplus of $4.35 billion. Foreign investment in domestic stocks increased, and the Bank of Korea boosted its forecast for this year's current account surplus to $450 billion.