South Korea Current Account Surplus Sets New Record in June

(MENAFN) South Korea’s current account surplus soared to an all-time monthly high in June, driven by surging exports of semiconductors and ships alongside stronger dividend returns from overseas investments, according to Bank of Korea (BOK) data released Thursday.

The country posted a surplus of $14.27 billion, the highest since records began, marking 26 straight months in the black since May 2023 for the broadest gauge of cross-border trade.

Exports rose 2.3% year-on-year in June, reversing a 2.9% drop in May, propelled by heightened global demand for Korean-made chips and ships. Imports edged up 0.7% from a year earlier, following a 7.2% decline the month before.

Goods trade led the gains with a $13.16 billion surplus, up from $10.66 billion in May.

However, the services sector remained a drag. The service account recorded a deficit of $2.53 billion, widening from May’s $2.28 billion shortfall.

Meanwhile, the primary income account posted a surplus of $4.16 billion, buoyed by higher dividends from overseas equity holdings.

Capital outflows continued, as the financial account posted a net outflow of $17.29 billion in June.

Domestic residents increased their overseas direct investment by $3.92 billion, while inbound foreign direct investment rose $740 million.

Portfolio investment also saw a surge: South Korean investors boosted their holdings abroad by $9.84 billion, while foreign investors raised their positions in Korean stocks and bonds by $5.41 billion.

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