The data showed that Korea’s goods surplus with the United States remained strong, but was increasingly offset by a wider services deficit and weaker income receipts.
According to preliminary regional balance of payments data from the Bank of Korea, Korea posted a current account surplus of $123.05 billion in 2025, up from $99.97 billion a year earlier.
The improvement was led by goods. Korea’s goods account surplus rose to $138.07 billion from $110.91 billion, while the services deficit widened to $34.52 billion from $29.43 billion.
By region, Korea’s current account surplus with the United States remained the largest at $111.42 billion, but was down from a record $116.97 billion in 2024.
It marked the first annual decline since 2019.
The goods surplus with the United States increased to $111.98 billion from $109.22 billion a year earlier.
Exports to the United States also rose to $185.22 billion from $182.57 billion, as stronger shipments of semiconductors, smartphones and other information technology products offset declines in goods subject to U.S. tariffs.
Korea’s services deficit with the United States widened to $14.62 billion from $8.88 billion, mainly as payments for intellectual property rights increased, including trademark fees paid to overseas headquarters of global companies and industrial property fees paid by Korean firms.
The primary income surplus with the United States also narrowed to $16.05 billion from $18.15 billion, as earnings at overseas affiliates declined and some domestic companies paid large dividends to their overseas headquarters.
Korea’s current account deficits with China and Japan widened.
The deficit with China increased to $25.32 billion from $23.45 billion, as the goods deficit widened on weaker exports of steel products and chemicals.
The deficit with Japan widened to $20.30 billion from $17.97 billion, as exports of petroleum products fell, imports of semiconductor manufacturing equipment rose and travel payments by Koreans visiting Japan increased.
In contrast, Korea’s current account surplus with the European Union rose to $24.42 billion from $22.22 billion, helped by stronger exports of semiconductors and passenger cars and a wider primary income surplus due to lower dividend payments.
The surplus with Southeast Asia increased to $71.84 billion from $63.44 billion, as exports of semiconductors and related equipment rose and the services balance swung to a surplus for the first time in three years.
The biggest improvement came from the Middle East, where Korea’s current account deficit narrowed to $49.75 billion from $67.96 billion.
The goods deficit with the Middle East shrank sharply as lower oil prices reduced imports of crude oil, gas and other energy products. Dubai crude averaged $69.40 a barrel in 2025, down 12.8 percent from $79.60 in 2024.
Korea’s current account surplus with Central and South America also increased, led by stronger exports of ships and passenger cars.
In the financial account, Koreans’ overseas portfolio investment assets jumped to $140.28 billion from $66.97 billion, led by a surge in overseas equity investment.
Portfolio investment in the United States more than doubled to $109.13 billion from $49.54 billion, driven by gains in U.S. technology shares.
Foreign portfolio investment in Korea also expanded to $52.54 billion from $21.36 billion, as bond inflows jumped ahead of Korea’s inclusion in the World Government Bond Index.
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