August Current Account Surplus Again Hits Second-Highest Level on Record... Jan-Aug Total Reaches $279.2 Billion (Updated)

August Surplus at $46.11 Billion, Above $40 Billion for Third Straight Month
Goods Account Surplus at $46.81 Billion; Goods Exports Reach $104.8 Billion
January-August Current Account Surplus at $279.2 Billion, Closing in on $450 Billion Annual Forecast

South Korea’s cumulative current account surplus for January-August reached $279.2 billion. The current account surplus in August exceeded $45 billion, marking the second-highest monthly figure on record after June, when it came close to $50 billion. This brought the country one step closer to this year’s current account surplus forecast of $450 billion, which has been raised substantially.

According to the preliminary balance of payments for August 2026 released by the Bank of Korea on October 8, South Korea recorded a current account surplus of $46.11 billion in August. After topping $40 billion for three consecutive months, the surplus widened from $42.08 billion in the previous month and set a new record for the second-highest monthly figure, following the all-time high of $49.73 billion in June. The current account has remained in surplus for 39 consecutive months since May 2023, continuing the second-longest surplus streak on record.

The goods account, which makes up the largest share of the current account, drove the surplus. The goods account posted a surplus of $46.81 billion in August, the second-highest figure on record and a record high for the month, matching the current account.

Goods exports in August reached $104.8 billion, surpassing $100 billion for the third consecutive month on strong semiconductor performance. This was an 82.1% increase from the same month a year earlier. On a customs-clearance basis, exports of IT products rose 162.6% year on year in August, while non-IT exports increased 8.1%. IT exports grew mainly on shipments of computer peripherals, including SSDs (366.8%), semiconductors (206.1%), and wireless communication devices (3.9%). Non-IT exports increased for petroleum products (64.9%), chemicals (22.8%), steel products (13.4%), and machinery and precision instruments (9.2%). Passenger car exports, meanwhile, fell 30.1%.

Goods imports ($57.99 billion) increased at a faster pace as imports of raw materials (13.1%) and capital goods (42.9%) continued to rise, while consumer goods (4.3%) also returned to growth.

Containers are stacked at Pyeongtaek Port in Gyeonggi Province. Yonhap News Agency

The services account posted a deficit of $1.68 billion. The travel account deficit widened to $770 million, but the overall deficit narrowed as the transport account ($520 million) and the charges for the use of intellectual property account (a deficit of $390 million) improved. The transport account surplus widened amid a recent rise in export freight rates. The travel account deficit grew as travel payments increased during the peak season for overseas travel.

The primary income account posted a surplus of $1.92 billion. The surplus narrowed, mainly because the dividend income account recorded a surplus of $180 million. The dividend income account surplus narrowed due to seasonal effects from quarterly dividend payments on portfolio investments, which are concentrated in May, August, and November.

Net assets in the financial account, calculated by subtracting liabilities from assets, increased by $40.23 billion, a level similar to the previous month’s $40.32 billion. In direct investment, residents’ investments abroad increased by $6.22 billion, while foreign investment in South Korea fell by $1.61 billion. In portfolio investment, residents’ investments abroad rose by $16.6 billion, mainly in equities, while foreign investment in South Korea fell by $4.85 billion, mainly in bonds. The increase in residents’ overseas portfolio investment was the second-largest on record, following $17.29 billion in October last year. This was driven by continued net buying of equities and record-high bond investment. Residents’ overseas equity investment increased by $10.15 billion. Investment in debt securities rose by $6.44 billion, the largest increase on record.

Foreign investment in South Korean equities fell by $470 million as the temporary effect of SK hynix’s issuance of American depositary receipts (ADRs) faded. It reversed to a decline for the first time in a month after increasing by $5.98 billion in July. Foreign investment in debt securities fell by $4.38 billion as incentives for arbitrage trading weakened.

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