S. Korea posts record-high current account surplus in May: BOK
Seoul, July 8
South Korea posted an all-time high current account surplus in May on robust exports of semiconductors, central bank data showed on Wednesday.
The current account surplus totalled $38.61 billion in May, up from $28.29 billion the previous month, according to the data from the Bank of Korea (BOK).
It marked the largest monthly current account surplus ever, renewing the previous record of $37.93 billion set in March, reports Yonhap news agency.
Compared with the same month a year earlier, the figure surged from $9.91 billion.
South Korea has reported a current account surplus every month since May 2023, extending its winning streak to 37 consecutive months, marking the second longest in history.
In the first five months of the year, the country recorded a cumulative current account surplus of $141.28 billion, sharply higher than the $33.9 billion surplus posted during the same period last year.
"We expected a current account surplus of $151.5 billion for the first half, and that figure will likely be exceeded in June," a BOK official said. "For 2026 as a whole, the annual current account surplus will likely surpass our earlier forecast of $250 billion."
The goods account posted a surplus of $37.86 billion in May, marking the largest, as exports surged 62.9 percent on-year to $94.34 billion, while imports went up 22.2 percent to about $56.48 billion.
Exports of information technology products soared 128.9 percent from a year earlier, including a 167.7 percent surge in chip shipments and a 249.4 percent rise in computer peripherals.
The services account recorded a deficit of $1.09 billion in May, narrowing the loss from the previous month's $2.42 billion on decreasing travel deficit and intellectual property-related payments.
The primary income account, which includes wages of foreign workers, as well as dividend and interest income from abroad, posted a surplus of $2.17 billion on increased dividend income.
The secondary income account recorded a $330 million deficit.
— IANS
Reader Comments
While SK celebrates this surplus, India's trade deficit is widening alarmingly. $38 billion surplus vs our $20+ billion deficit last month. We're importing too much oil and electronics. Need to build our own manufacturing base like Korea did decades ago. But easy to say, tough to do given our democratic constraints and bureaucracy.
Impressive resilience in the Korean economy. The 167% surge in chip exports is staggering. But we shouldn't ignore the deficit in services - tourism and IP payments still bleeding. For India, we should look at how they balanced goods surplus with services deficit. Our IT services surplus is great but manufacturing gap hurts.
Love seeing Asian economies doing well! But one has to wonder - at what cost? The working hours in Korean chaebols are notorious, and their birth rate is the world's lowest. Economic surplus doesn't always mean happy citizens. India should grow but not by sacrificing work-life balance and family life. Balance is key. 🙂
Respect to the BOK for accurate forecasting. They predicted $151.5B for H1 and June data might overshoot. India's RBI should take note - our forex reserves management could learn from Korea's approach. But context matters: Korea is export-dependent while India has a massive domestic market. Apples and oranges comparison.
Yaar, but compare this with India's situation. Korea's export growth is 63% while ours is struggling around 12-15%. Their semiconductors, our IT services - different game. The real lesson is infrastructure and ease of doing business. India has talent but lacks the ecosystem. Let's
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