Home > Business > Finance

Surplus, overseas stocks at near-record numbers in January

Published: 06 Mar. 2026, 16:23

Containers are stacked at Pyeongtaek Port in Pyeongtaek, Gyeonggi, on March 1 as Korea’s exports surge on strong semiconductor shipments. [YONHAP]

Overseas stock investment by Korean retail investors surged in January, marking the second-largest monthly increase on record. Meanwhile, the current account posted the fifth-largest surplus in history, supported by strong semiconductor exports.

The Bank of Korea (BOK) released its preliminary balance of payments data for January 2026 on Friday.

Net assets in the financial account, meaning assets minus liabilities, increased by $5.63 billion in January, according to the BOK. The financial account records changes in transactions of external financial assets and liabilities by all residents. Overseas investment by Korean residents is recorded as assets, while foreign investment in Korea is recorded as liabilities.

In January, under the financial account’s direct investment category, overseas investment by Korean residents increased by $7.04 billion, while foreign direct investment in Korea rose by $5.34 billion.

In securities investment, overseas investment by Korean residents — mainly in stocks — increased by $13.46 billion, while foreign investment in Korea — largely in bonds — rose by $4.69 billion.

Amid strong investor sentiment in the U.S. stock market early in the year, overseas stock investment by Korean residents increased by $13.2 billion, the second-largest increase on record.

The current account remained in surplus for a 33rd straight month, the second-longest streak since entering the 2000s. The January current account surplus came to $13.26 billion, the largest ever for the month of January.

With strong exports in the information technology sector continuing, the goods account, referring to exports minus imports, posted a $15.17 billion surplus. That was slightly smaller than the $18.85 billion surplus in December last year but still the third-largest on record. Exports rose 30 percent from a year earlier to $65.51 billion, led by semiconductors, wireless communication devices and passenger cars.

[BANK OF KOREA]

More working days in January also contributed to the increase. The Lunar New Year holiday fell in January last year but came in February this year, widening the year-on-year increase. Imports rose 7 percent from a year earlier to $50.34 billion, as raw materials imports edged down on lower energy prices.

The services account posted a $3.8 billion deficit. With fewer inbound travelers, the travel account deficit widened to $1.74 billion from $1.4 billion the previous month. As dividend income from overseas securities investment fell from the year-end period, the primary income surplus narrowed to $2.72 billion from $4.73 billion the previous month.

Although strong exports are keeping the current account in the black, a prolonged bout of geopolitical risk in the Middle East could deal an unavoidable blow. If oil prices rise and imports increase, the current account surplus could shrink. A global slowdown could also flash warning signs for manufacturing exports. If the Strait of Hormuz is blocked and shipping is disrupted, freight costs could rise and affect the transportation balance as well.

The BOK announced, however, that the impact on the current account could be limited if the war ends in a short period.

“Looking at past cases, including last year’s 12-day war between Iran and Israel, oil prices rose temporarily and then fell,” a BOK official said. “For now, the armed conflict is still in its early stage and uncertainty is high, so it is hard to prejudge the outcome and we will need to watch how the situation develops.”

If international oil prices hold near an annual average of around $80 a barrel, the impact on economic growth, down 0.1 percentage points, and the current account, down $5.8 billion, is expected to be limited, according to the Hyundai Research Institute. If the annual average oil price reaches $100 a barrel, the current account is projected to fall by $26 billion and economic growth to drop by 0.3 percentage points.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY OH HYO-JEONG [[email protected]]