Current Account Surplus Hits Record $9.15 Billion for August... Exports Decline for First Time in Three Months (Update)

Bank of Korea's "Provisional International Balance of Payments for August 2025"
28 Consecutive Months of Surplus, Second-Longest Streak in the 2000s
Imports Fall More Than Exports... Goods Account Records Second-Largest August Surplus
Exports: Semiconductors and Passenger Cars Up, Steel Products and Petrochemicals Down, Exports to US Down 12%

In August 2025, South Korea recorded a current account surplus of 9.15 billion US dollars, marking the highest figure ever for the month of August. The goods account also posted the second-largest surplus for August on record. Although exports declined for the first time in three months due to sluggish steel products, the continued growth in semiconductor and passenger car exports, coupled with a decline in imports-mainly raw materials-driven by falling energy prices, contributed to the surplus.

According to the "Provisional International Balance of Payments for August 2025" released by the Bank of Korea on October 2, South Korea's current account surplus in August amounted to 9.15 billion US dollars, the largest ever for the month of August. This marks the 28th consecutive month of surplus since May 2023, making it the second-longest streak in the 2000s. The surplus increased compared to the same period last year (6.73 billion US dollars), but decreased from the previous month (10.78 billion US dollars).

The goods account, which accounts for the largest portion of the current account, posted a surplus of 9.4 billion US dollars. This is the second-largest August surplus on record, following August 2018 (10.93 billion US dollars). The surplus widened compared to the same month last year (6.71 billion US dollars), but narrowed from the previous month (10.27 billion US dollars).

Exports totaled 56.44 billion US dollars, a 1.8% decrease from the same period last year, marking the first decline in three months. While exports of semiconductors and passenger cars increased, those of steel products, petrochemicals, and machinery declined. According to August customs clearance data, semiconductor exports surged 26.9% year-on-year to 15.3 billion US dollars. Passenger car exports rose 7.0% to 5.22 billion US dollars. In contrast, steel product exports fell 11.7% to 3.56 billion US dollars. Exports of petrochemicals (-11%), wireless communication devices (-11%), and machinery and precision instruments (-8.2%) also declined.

Imports totaled 47.04 billion US dollars, a 7.3% decrease from the same month last year. While imports of capital goods and consumer goods continued to increase, imports of raw materials continued to decline due to falling energy prices. In August, imports of raw materials, based on customs clearance data, dropped 10.6% year-on-year to 24.29 billion US dollars, mainly due to decreases in coal (-25.3%), petroleum products (-20.3%), and crude oil (-16.6%). Gas imports increased by 6.6%. Capital goods imports rose 3.1% to 18.82 billion US dollars, with increases in information and communication devices (26.4%), semiconductor manufacturing equipment (9.5%), and semiconductors (4.5%). However, imports of transportation equipment plunged 37.2%. Consumer goods imports also increased by 1.3% to 8.74 billion US dollars, with passenger cars up 40.5% and direct consumer goods up 5.2%. However, imports of grains and non-durable consumer goods fell by 10.1% and 6.7%, respectively.

The services account posted a deficit of 2.12 billion US dollars, slightly narrowing the deficit from the previous month (2.14 billion US dollars). The transport account recorded a surplus of 440 million US dollars, with increased transport income mainly from maritime transport, thereby expanding the surplus. The intellectual property rights account posted a deficit of 60 million US dollars. Seasonal increases in both income and payments for industrial property rights (patents, trademarks) and copyrights (music, video) helped reduce the deficit.

The primary income account recorded a surplus of 2.07 billion US dollars, mainly due to dividend income. Although this was a decrease from the previous month (2.95 billion US dollars), it was the second-largest August surplus on record. The dividend income account recorded a surplus of 1.58 billion US dollars. Due to seasonal factors such as quarterly dividend payments, the surplus narrowed from the previous month (2.58 billion US dollars).

Net external assets in the financial account, calculated as assets minus liabilities, increased by 7.88 billion US dollars. This was a smaller increase compared to the previous month (11.08 billion US dollars).

This content was produced with the assistance of AI translation services.