South Korea's current account surplus hits record high for second month

South Korea's economy posted a record current account surplus of $49.73 billion in June, extending a streak of surpluses to 38 months. This figure surpasses the previous record set in May and highlights the robust performance of the nation's trade balance.

The goods account, a key component of the current account, reached an all-time high of $47.89 billion. This surge was fueled by a remarkable 84.5% year-on-year increase in exports, which exceeded $100 billion for the first time. Both IT and non-IT product exports contributed to this growth.

Imports also rose by 38.6%, reaching $64.48 billion, with increases across capital goods, raw materials, and consumer goods. The service account recorded a deficit of $1.29 billion, though the travel account showed a surplus of $440 million for the second consecutive month, aided by increased inbound travelers and reduced outbound travel due to higher fuel surcharges.

Meanwhile, financial accounts saw a net asset increase of $46.71 billion, the largest on record. This was driven by domestic investors increasing overseas investments and foreign investors increasing domestic investments. However, foreign investment in South Korean stocks saw a record decrease of $31.61 billion, surpassing the previous month's decline, as investors engaged in profit-taking sales.