July Current Account Surplus

South Korea recorded a current account surplus of $10.78 billion in July, as announced by the Bank of Korea in its "Preliminary July Balance of Payments" report on September 4. This marks the 27th consecutive month of positive balance, although the surplus decreased from June's record high of $14.27 billion.

Export vehicles are parked at Pyeongtaek Port in Gyeonggi Province. (Captured from Yonhapnews TV)

Goods Account Performance

The goods account surplus was $10.27 billion, the third-highest ever for July. Exports increased by 2.3% year-on-year to $59.78 billion, driven by strong demand for semiconductors and passenger cars, while imports fell 0.9% to $49.51 billion.

Services and Primary Income Accounts

The services account showed a deficit of $2.14 billion, but the travel account deficit narrowed due to the summer peak travel season boosting inbound tourism. The primary income account posted a surplus of $2.95 billion, though dividend and interest income surpluses declined, reducing the overall figure.

Year-to-Date and Projections

For the first half of the year, the cumulative current account surplus reached $49.37 billion, the third-largest on record for a six-month period. The Bank of Korea projects a full-year surplus of $110 billion, with $60.7 billion expected in the second half, requiring an additional $49.9 billion from August to December.

Financial Account Details

Net assets increased by $11.08 billion in July. In direct investment, South Korean overseas investment expanded by $3.41 billion, while foreign investment in South Korea rose by $1.72 billion. Securities investment saw growth in both directions: South Korean overseas investment up $10.1 billion (led by equities) and foreign investment in South Korea up $7.64 billion (focused on bonds). Other investment assets rose by $3.16 billion, mainly in cash and deposits, while liabilities fell by $1.96 billion, and reserve assets increased by $2.05 billion.