June Monthly Current Account Surplus Surpasses Last Year's First-Half Performance...Annual Figure May Top $300 Billion (Comprehensive)

Current Account Surplus Hits $49.73 Billion in June, Setting New Record for Second Consecutive Month
Goods Account Surplus Tops $47.89 Billion—Highest Ever; Exports Surpass $100 Billion for First Time
Travel Account Remains in Surplus for Two Mo

In June 2026, South Korea's current account surplus approached USD 50 billion, setting a new all-time monthly record just one month after the previous high. The monthly surplus surpassed the total surplus for the first half of last year, marking an unprecedented performance. Robust semiconductor exports drove the goods balance to break its previous monthly surplus record, thereby leading the overall current account surplus. An increase in foreign tourists helped generate a surplus in the travel balance for the second consecutive month, while the widening of the primary income surplus further fueled the current account rally.

This year alone, monthly record highs were set in March, May, and June, resulting in the accumulated current account surplus for the first half of 2026 already exceeding the annual record. The year-to-date surplus in the first half reached USD 191.01 billion, which is roughly four times the USD 47.87 billion surplus in the same period last year. With strong export momentum expected to continue in the second half, it appears likely that the Bank of Korea's annual forecast of USD 250 billion will be exceeded with ease. There is even market speculation that the annual surplus could surpass USD 300 billion. Achieving a monthly surplus of just USD 20 billion in the second half would make this possible.

Current Account Surplus Sets Another All-Time High in June... Triple Crown for Goods Balance and Exports

According to the "Provisional International Balance of Payments for June 2026" released by the Bank of Korea on August 6, the nation's current account surplus reached USD 49.73 billion in June. This surpasses the previous record of USD 38.61 billion set in May and marks the highest figure ever. This was also the first time the monthly surplus exceeded USD 40 billion, representing an increase of USD 11.12 billion from the prior month. The current account has been in surplus for 37 consecutive months since May 2023, continuing the longest surplus streak since March 2019.

The record-breaking surplus was mainly driven by the goods balance, which accounts for the largest share of the current account. The goods balance posted a surplus of USD 47.89 billion in June, breaking the all-time monthly record alongside the current account surplus.

The goods balance widened as export growth, led by semiconductors and computer peripherals, far outpaced the growth in imports. Goods exports in June reached USD 112.37 billion, up 84.5% from the same month a year earlier. This is the first time monthly goods exports exceeded USD 100 billion.

Buoyant exports of semiconductors and computer peripherals, along with increases in non-IT items such as petroleum products and chemical products, contributed to the growth. Exports of IT items surged by 160.4% year-on-year, while non-IT item exports increased by 18.6%. By product, SSD (Solid State Drive) exports—classified under computer peripherals—soared by 282.7%, and semiconductor exports jumped by 196.9% year-on-year in June.

Goods imports stood at USD 64.48 billion, a 38.6% increase from a year earlier. The ongoing war in the Middle East led to higher imports, particularly in raw materials and capital goods. Imports of raw materials increased by 30.5% and capital goods rose by 35.3%. Due to the rise in energy prices, imports of crude oil grew by 50.3% and coal imports surged by 63.0%. For capital goods, increases were concentrated in semiconductors (up 64.1%), telecommunications equipment (up 44.0%), and semiconductor manufacturing equipment (up 42.4%).

Yonhap News Agency

Travel Balance Posts Second Consecutive Surplus... Dividend Income Also Expands

The services account recorded a deficit of USD 1.29 billion in June, widening slightly from the previous month's deficit of USD 1.09 billion. Although transportation and travel balances improved, a turnaround into deficit for both telecommunications/computer/information services and intellectual property rights royalty accounts contributed to the overall deficit. However, the travel balance posted a surplus for the second straight month, reaching USD 440 million in June and widening further. This is the second-largest travel surplus on record. The increase is attributed to a sharp rise in travel income driven by a surge in foreign tourists. Conversely, as the number of outbound Korean travelers declined due to factors such as higher fuel surcharges in May, the travel surplus grew further.

The primary income balance recorded a surplus of USD 3.27 billion, up from the previous month's surplus of USD 2.17 billion. The expansion was largely driven by increased dividend income as well as a base effect from decreased dividend payments, following a large-scale quarterly payout in the prior month. This pushed the dividend income surplus up to USD 2.56 billion.

Net financial assets, calculated as total assets minus liabilities in the financial account, rose by USD 46.71 billion—a new all-time high surpassing the previous record of USD 38.05 billion set in March. Direct investment saw outbound investment by Koreans increase by USD 8.01 billion and inbound investment by foreigners rise by USD 4.63 billion. In portfolio investment, Korean investment abroad—driven by stocks—increased by USD 3.56 billion, while foreign investment in Korea decreased by USD 26.32 billion, mainly due to a record net outflow of USD 31.61 billion from stock sales by foreigners seeking profit realization.

Difficult to Find Downside Risk in Second Half..."Current Account Surplus Likely to Exceed USD 250 Billion Forecast"

The current account surplus of USD 191.01 billion in the first half of this year accounts for 76% of the annual forecast. This is approximately USD 39.5 billion higher than the expected surplus of USD 151.5 billion for the first half. Younghwan Kim, Director of the Economic Statistics Department 1 at the Bank of Korea, stated, "We posted a much higher surplus than projected in the first half, and the full-year figure is also expected to exceed the forecast."

In its economic outlook released in May, the Bank of Korea raised its annual current account surplus projection by USD 80 billion—from USD 170 billion to USD 250 billion—citing stronger-than-expected first-half performance. With results exceeding expectations, the annual forecast is expected to be revised upward again this month.

On the morning of the 6th, a briefing on the 'International Balance of Payments for June 2026' is underway at the Bank of Korea in Jung-gu, Seoul. (From left) Junyoung Kim, Manager of the International Balance of Payments Team; Younghwan Kim, Director of the Economic Statistics Department 1; Sunggon Park, Head of the International Balance of Payments Team; Yeonbin Lim, Manager of the International Balance of Payments Team. Provided by the Bank of Korea.

Analysts believe it will be difficult to identify obvious downside risks strong enough to overturn the dominant trend of robust semiconductor exports in the second half. Director Kim noted, "Although the customs-based trade balance in July decreased compared to the previous month, semiconductor exports continue to show strong momentum. There is a possibility that the goods balance will hit another all-time high on a monthly basis."

According to the Ministry of Trade, Industry and Energy, South Korea's exports in July totaled USD 98.89 billion, up 62.8% year-on-year. Exports of semiconductors—the nation's largest export item—topped USD 40 billion for the second consecutive month. The trade surplus reached USD 30.32 billion, marking a surplus above USD 30 billion for two consecutive months.

Sunggon Park, Head of the International Balance of Payments Team at the Bank of Korea, commented, "The surge in semiconductor exports is so significant that it somewhat overshadows the growth in non-IT sectors, but the trend in non-IT items is also positive—semiconductors continue to lead exports, yet other categories are also making meaningful contributions."

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