South Korea achieved a record-breaking current account surplus in May, primarily fueled by exceptionally strong semiconductor exports, according to data released Wednesday by the central bank. This impressive economic performance highlights the nation’s robust trade activity and global market standing.
Specifically, the nation’s current account surplus reached an impressive $38.61 billion in May. This figure marks a significant increase from the $28.29 billion reported in the preceding month, underscoring the strong upward trend observed in Bank of Korea statistics.
This latest achievement represents the largest monthly current account surplus ever recorded by South Korea, surpassing the previous peak of $37.93 billion established just two months prior in March. Such consecutive record-breaking figures signal sustained economic strength and competitiveness.
Further illustrating this remarkable growth, the May surplus dramatically surged from $9.91 billion recorded in the same month a year earlier, highlighting a substantial year-over-year expansion in South Korea’s external accounts.
This robust performance is not an isolated event; South Korea has consistently maintained a current account surplus every month since May 2023, extending an impressive winning streak to 37 consecutive months. This sustained positive balance is a key indicator of economic stability and strong export capabilities.
Looking at annual figures, 2025 saw the country achieve its largest annual current account surplus on record, totaling an extraordinary $123.05 billion. This significantly surpassed the prior peak of $105.1 billion, which was established back in 2015, demonstrating a long-term upward trajectory in its trade balance.
Delving into the components, the goods account significantly contributed to the overall surplus, recording a substantial $37.86 billion in May – also marking its largest ever. This remarkable achievement was driven by a powerful surge in exports, which escalated by 62.9 percent year-on-year to reach $94.34 billion. Simultaneously, imports experienced a notable increase of 22.2 percent, totaling approximately $56.48 billion.
A key driver behind this export boom was the exceptional performance of information technology (IT) products, whose exports skyrocketed by an astounding 128.9 percent compared to the previous year. This growth was particularly propelled by a massive 167.7 percent surge in semiconductor (chip) shipments and an impressive 249.4 percent rise in computer peripherals, underscoring South Korea’s technological prowess and global market demand for its advanced products.
In contrast, the services account registered a deficit of $1.09 billion in May. However, this figure represents a significant improvement, as the loss narrowed considerably from the $2.42 billion deficit reported in the preceding month. This positive shift was attributed to a decrease in the travel deficit and reduced intellectual property-related payments, indicating a more favorable balance in non-goods trade.
Finally, the primary income account, encompassing wages for foreign workers, along with crucial dividend and interest income received from overseas investments, posted a healthy surplus of $2.17 billion. This positive balance was primarily driven by a notable increase in dividend income, further bolstering South Korea’s overall external financial position.
