Korea's current account surplus streak hits record in June at $14B

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Korea's current account surplus streak hits record in June at $14B

Published: 07 Aug. 2025, 13:31 Updated: 07 Aug. 2025, 14:31

Audio report: written by reporters, read by AI

Containers for export are piled up at a port in Pyeongtaek, Gyeonggi, on Aug. 1. [NEWS1]

Korea posted its largest-ever current account surplus in June, amid a 26-month trading surplus streak.

The current account surplus reached $14.27 billion in June, up from $10.14 billion the previous month and $13.1 billion in June last year, according to preliminary balance of payments data released by the Bank of Korea on Thursday. This is the largest monthly surplus on record and marks the third-longest surplus streak since the 2000s.

From January to June, the cumulative surplus totaled $49.37 billion, a year-on-year increase of about $9.2 billion compared to the same period last year.

The goods account recorded a $13.16 billion surplus in June, up from $10.66 billion in May. It was the third-highest monthly figure on record after $14.52 billion in September 2017 and $13.32 billion in March 2016.

Exports totaled $60.37 billion, up 2.3 percent from a year earlier, driven by gains in both IT products such as semiconductors and non-IT items like pharmaceuticals. By category, exports of computer peripherals rose 13.6 percent, semiconductors 11.3 percent and pharmaceuticals 51.8 percent.

Export-made cars are seen parked at a port in Pyeongtaek, Gyeonggi, on Aug. 1. [NEWS1]

However, shipments of passenger cars, petroleum products and steel products fell by 0.3 percent, 0.9 percent and 2.8 percent, respectively.

Regionally, exports to the European Union and Southeast Asia rose by 14.7 percent and 6 percent, while exports to the United States and China slipped by 0.5 percent and 2.7 percent.

Imports stood at $47.21 billion, posting a modest increase of 0.7 percent after three months of decline. Capital goods imports rose 14.8 percent, led by semiconductor manufacturing equipment and semiconductors, which jumped 38.8 percent and 22.7 percent, respectively.

Consumer goods imports increased 7.6 percent, with direct consumer goods and passenger vehicles up 10.9 percent and 7.3 percent. However, falling energy prices led to a 6.4 percent decline in raw material imports — with petroleum products down 33.1 percent, coal 25.9 percent and crude oil 15.2 percent.

Grocery shoppers look around displays at a large supermarket in Seoul on Aug. 5. [NEWS1]

The services account posted a $2.53 billion deficit, widening from the previous month’s $2.28 billion and $1.64 billion a year earlier. The travel account was $1.01 billion in the red, compared to a $950 million deficit in May, due to a decrease in the number of inbound travelers.

The primary income account recorded a $4.16 billion surplus, nearly double the $2.15 billion in May, mainly due to a sharp rise in dividend income, which jumped from $1.59 billion to $3.44 billion.

Outbound direct investment by Korean nationals rose by $3.92 billion, while inbound foreign direct investment increased by $740 million.

In securities investment, Korean investors expanded overseas stock purchases by $9.84 billion, while foreign investors increased their holdings of Korean bonds by $5.41 billion.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JEONG JAE-HONG [[email protected]]