South Korea's June current account surplus hits record $49.73 billion

South Korea achieved a record-breaking current account surplus of $49.73 billion in June, propelled by a surge in semiconductor exports. This figure represents the highest monthly surplus ever recorded, surpassing May's record by over $10 billion.

The cumulative surplus for the first half of the year reached $191.01 billion, four times the amount recorded in the same period last year. The goods account, a key component of the current account, also set a monthly record with a surplus of $47.89 billion. This was largely due to a strong performance in exports, which exceeded $100 billion, fueled by growth in both IT and non-IT product categories.

Despite the strong goods trade, the services account recorded a deficit of $1.29 billion. While improvements in the transport and travel balances offered some relief, deficits in communication, computer, information services, and intellectual property rights payments widened the overall services deficit. The travel balance saw an increase in surplus due to more inbound travelers, even as outbound travel decreased due to rising fuel surcharges.

The primary income account also expanded, primarily driven by dividend income. This increase was attributed to higher dividend receipts and a base effect from the previous quarter's dividend payments. The financial account showed a net increase in assets of $46.71 billion, an expansion from the previous month, with increased overseas investment by domestic entities and foreign investment within South Korea.