SEOUL, South Korea / AsiaWire.IO / – South Korea posted the second-largest current account surplus among major economies in the second quarter, exceeding the combined surpluses of Germany and Japan. The country’s surplus reached $116.63 billion in the April-June period, according to central bank data reported by Yonhap News Agency. Only China recorded a larger surplus, at $193.72 billion. Germany ranked third with $52.28 billion, followed by Japan with $50.62 billion.
The combined surplus of Germany and Japan came to $102.90 billion, which was $13.73 billion less than South Korea’s. It was the first time South Korea’s surplus had exceeded the combined figures for the two countries since comparable data for all three became available in the first quarter of 1996. Strong semiconductor exports drove the increase. Chips have been the key contributor to South Korea’s export growth this year.
Monthly figures from the Bank of Korea show how the quarter built up. The surplus stood at $28.29 billion in April before rising to $38.61 billion in May. It then reached a record $49.73 billion in June, the largest monthly surplus ever recorded. The first-half surplus totalled $191.01 billion, also a record for the period. June also marked the 38th consecutive month of surplus.
Chip exports drive record trade gains
In June, exports rose 84.5% from a year earlier to $112.37 billion, topping $100 billion for the first time. Chip shipments jumped 196.9% year on year. The goods balance showed a surplus of $47.89 billion that month. The figures reflected a global upcycle in semiconductors, which has boosted demand for South Korean chips across major markets.
The trend continued after the second quarter. The current account surplus was $42.08 billion in July and $46.11 billion in August, the second-highest monthly figure on record. August exports climbed 82.1% to $104.8 billion, while imports rose 23.8% to $57.99 billion. South Korea has now posted a current account surplus for 40 consecutive months, a run that began in May 2023. The surplus has also stayed above $40 billion for three straight months.
Surplus on track for another record year
The cumulative surplus for January to August reached $279.2 billion, nearly four times the level of a year earlier. That already far exceeds the full-year record of $123.05 billion set in 2025. In August alone, the goods balance recorded a surplus of $46.81 billion. The previous annual high before that was $105.1 billion in 2015. The services account remained in deficit in August at $1.68 billion, while primary income showed a surplus of $1.92 billion.
Semiconductor demand has continued into the final quarter of the year. Exports more than doubled in the first 20 days of October, led by chip shipments. Car and ship exports fell in August, by 30.1% and 45.2% respectively, showing that the gains remain concentrated in chips. The Bank of Korea is due to release September balance of payments data in the coming weeks.