South Korea records world’s second-largest current-account surplus in first half as chip exports surge

South Korea’s current-account surplus reached $42.08 billion in July, the second-highest monthly figure ever recorded and the largest for the month, as semiconductor exports continued to surge.

The July result followed a record $49.73 billion surplus in June. South Korea has maintained a current-account surplus for 39 consecutive months since May 2023, marking the country’s second-longest such run since the 2000s.

Goods exports rose 65.3 percent from a year earlier to $100.45 billion. Export value exceeded $100 billion for the second consecutive month, providing the main force behind the strong external balance.

The Bank of Korea said South Korea’s cumulative current-account surplus for the first half reached $191.01 billion, about four times the $47.87 billion recorded in the first half of last year. That placed South Korea ahead of Germany, Japan and Taiwan, and second worldwide behind China.

The central bank sharply raised its full-year current-account surplus forecast on Aug. 27, from $250 billion to $450 billion. Yoo Seong-wook, head of the Bank of Korea’s Financial Statistics Department, said the current export performance appeared consistent with the revised annual projection. The travel balance, however, shifted to a $340 million deficit in July after more people traveled abroad following the government’s designation of a public holiday. South Korea recorded 2.419 million departures and 2.093 million arrivals that month.

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Given the current export situation, the results appear likely to meet the annual current-account surplus forecast.