South Korea's May current account surplus hits record high

South Korea achieved a record-high current account surplus of $38.61 billion in May, driven by robust exports, particularly in the semiconductor sector. This figure surpasses the previous monthly record set in March and highlights a strong performance in international trade.

The goods account surplus reached $37.86 billion, also a monthly record. Exports surged by 62.9% compared to the previous year, significantly outpacing the 22.2% increase in imports. Semiconductor exports were a key driver, soaring by 128.9% year-on-year, while other IT products also saw substantial growth. Non-IT exports also maintained a double-digit increase.

For the first five months of the year, South Korea's cumulative current account surplus exceeded $121.9 billion, a fivefold increase compared to the $24.77 billion recorded in the same period last year. The service account deficit narrowed to $1.09 billion, partly due to an improvement in the travel balance and intellectual property payments. The primary income account also shifted to a surplus of $2.17 billion, mainly due to dividend income.