South Korea Achieves Record Current Account Surplus in July
South Korea has posted its biggest current account surplus for a July month, driven by strong exports and higher income from investments. The country’s central bank, the Bank of Korea, announced this news on Thursday, highlighting the nation’s economic resilience.
In July, South Korea’s current account surplus hit $10.78 billion. This marks the 27th month in a row that the country has enjoyed a surplus, showing steady economic strength. While July’s figure is the highest ever for that month, it is slightly below June’s record-high surplus of $14.27 billion.
Looking at the first seven months of this year, South Korea’s cumulative current account surplus reached $60.15 billion, up from $49.21 billion during the same period last year. This growth indicates continued economic stability and active trade.
The goods account, which measures exports and imports, showed a surplus of $10.27 billion in July. Exports rose by 2.3% compared to last year, totaling nearly $59.78 billion. At the same time, imports dropped slightly by 0.9%, reaching around $49.51 billion.
However, the services account recorded a deficit of $2.14 billion. This was mainly due to more South Koreans traveling abroad and spending overseas. Meanwhile, the primary income account—which includes earnings from foreign investments, dividends, and wages—showed a surplus of $2.95 billion in July.
Experts from the Bank of Korea say recent U.S. tariffs are starting to impact Korean exports, especially for automobiles, auto parts, and steel products. Song Jae-chang, a BOK official, mentioned that reciprocal tariffs introduced in August could make the effects more visible over time.
To protect its exports, South Korea is actively diversifying its markets. While semiconductor exports are expected to stay strong through next year, automakers are also reaching out to regions like the European Union and Australia to reduce dependence on the U.S. market and offset potential tariff impacts.
This positive trade data reflects South Korea’s ongoing economic growth and its ability to adapt to global trade challenges.
