South Korea’s July current-account surplus reaches $42.08 billion, topping $40 billion for a second month

South Korea’s current-account surplus climbed to $42.08 billion in July, the second-highest figure on record and the second straight month above $40 billion. The Bank of Korea said the result reflected continued strength in semiconductors, supported by demand related to artificial intelligence.

The surplus marked the 39th consecutive month in the black, making it the country’s second-longest surplus streak since the 2000s. The goods surplus reached $40.43 billion, also the second-largest on record, even as exports eased from the concentration of shipments at the end of the previous quarter.

Goods exports rose 65.3% from a year earlier to $100.45 billion, staying above $100 billion for a second month. Information-technology products increased 140.6%, while non-IT products grew 18.3%. Imports rose 21.7% to $60.02 billion, with capital goods up 36.7% and raw materials up 29.1%. Consumer goods fell 3%, their first decline in 15 months.

The services account recorded a $1.97 billion deficit. Telecommunications, computer and information services improved, but the travel balance swung to a $340 million deficit after three months of surplus. More people traveled abroad during the peak holiday season, which coincided with a temporary public holiday marking Constitution Day.

The primary-income balance posted a $4.35 billion surplus, driven largely by $3.83 billion in dividend income as overseas operating profits at semiconductor companies increased. Net financial assets rose by $40.32 billion. South Korean overseas investment increased by $3.36 billion, while foreign investment in South Korea fell by $780 million. Foreign investment in domestic shares rose to $5.98 billion, its first increase in six months, helped by weaker selling and SK hynix’s issuance of U.S. depositary receipts.