South Korea logs record current account surplus with US in 2024

IANS June 20, 2025 461 views

South Korea posted a historic $118.23 billion current account surplus with the US in 2024, driven by booming semiconductor and tech exports. While the surplus with America grew, deficits persisted with China and the Middle East though the EU trade gap improved significantly. The Bank of Korea credited strong ICT equipment shipments and dividend income for the record performance. Meanwhile, South Korean stocks opened higher Friday led by tech shares as markets digested the positive trade data.

"The increase was attributable to rising exports of semiconductors and ICT equipment" - Bank of Korea
Seoul, June 20: South Korea posted a record current account surplus with the United States last year, driven by strong exports of semiconductors, while it recorded a current account deficit with China, central bank data showed on Friday.

Key Points

1

Record $118B surplus with US fueled by semiconductor exports

2

$29B deficit with China narrows slightly

3

EU surplus triples to $17B on strong trade

4

Overall surplus jumps to $99B from $32.8B in 2023

South Korea's current account surplus with the US totalled an all-time high of $118.23 billion in 2024, widening from a $87.76 billion surplus the previous year, according to the Bank of Korea (BOK), reports Yonhap news agency.

"The increase was attributable to rising exports of semiconductors and information and communication technology equipment, while the primary income account surplus also expanded due to higher dividend income," the BOK said in a release.

But South Korea reported a current account deficit of $29.04 billion with China in 2024, though the figure narrowed slightly from a $29.25 billion deficit the year before.

With Japan, South Korea saw its current account deficit narrow to $12.72 billion from $15.77 billion over the same period, even as its service account deficit widened due to increased travel-related payments.

The country's current account surplus with the European Union nearly tripled from $5.85 billion in 2023 to $17.09 billion last year, driven by strong exports, according to the BOK.

The country also posted a $56.52 billion current account surplus with Southeast Asian nations last year, while it recorded a $69.02 billion deficit with the Middle East.

Overall, South Korea's current account surplus widened to $99.04 billion in 2024, up sharply from $32.82 billion a year earlier, the data showed.

Meanwhile, South Korean stocks opened higher on Friday to continue their upward momentum, driven by gains in big-cap tech shares.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 9.23 points, or 0.31 percent, to 2,986.97 in the first 15 minutes of trading.

Wall Street was closed overnight for a federal holiday commemorating the end of slavery in the United States.

—IANS

Reader Comments

Here are 6 diverse Indian perspective comments for the article:
R
Rajesh K.
Interesting to see South Korea's trade dynamics. Their semiconductor exports are really dominating global markets. India should learn from their tech manufacturing strategy - we have the talent but need better execution. Make in India needs more focus on high-tech sectors!
P
Priya M.
The deficit with China is concerning but not surprising. Many countries are struggling with trade imbalances with China. Hope South Korea diversifies its supply chains - maybe India can be an alternative partner? 🇮🇳🤝🇰🇷
A
Amit S.
$118 billion surplus with US is massive! Shows how crucial tech exports are in modern economy. Meanwhile our trade deficit with China keeps growing... When will Indian companies match this level of global competitiveness?
S
Sunita R.
The numbers with Southeast Asia are impressive too. South Korea has built strong economic ties across Asia while we're still stuck in old disputes. Maybe it's time for India to be more pragmatic in economic diplomacy like Korea.
V
Vikram J.
While Korea's success is commendable, let's not forget they had massive government support for decades to build their chaebols. India's approach is more democratic but slower. Different paths, different challenges.
N
Neha P.
The stock market reaction shows how integrated global economies are now. When US does well, Korea benefits, and vice versa. India needs to position itself better in these global value chains. PS: Love Korean tech but their beauty products are overrated 😄

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Tags:
South Korea economy US trade surplus semiconductor exports Bank of Korea current account balance