South Korea recorded a current account surplus of over $46.1 billion in August, driven by strong semiconductor exports. This marks the second-largest surplus on record, following June's figures. Semiconductor exports surged more than 200% compared to the same month last year, while total merchandise exports surpassed $100 billion for the third consecutive month.
According to the Bank of Korea's preliminary statistics on the international balance of payments for August 2026, the current account surplus was recorded at $46.11 billion. This marks the 40th consecutive month of surplus since May 2023, the longest streak since March 2019.
On a monthly basis, this figure is the second highest ever, following June's surplus of $49.73 billion. It exceeded July's previous record of $42.08 billion by $4.03 billion, setting a new record just a month later. The surplus has remained above $40 billion for three consecutive months.
For the first eight months of this year, the cumulative current account surplus reached $279.2 billion, nearly four times the $69.67 billion recorded during the same period last year. The Bank of Korea has revised its annual current account surplus forecast from $250 billion to $450 billion.
The merchandise trade balance recorded a surplus of $46.81 billion, also the second highest on record, expanding by $6.38 billion from the previous month’s surplus of $40.43 billion. Exports totaled $104.8 billion, an 82.1% increase compared to the same month last year, marking three consecutive months of exports exceeding $100 billion. Imports rose to $57.99 billion, a 23.8% increase.
Bank of Korea official Yu noted that the trend of merchandise exports exceeding $100 billion for three consecutive months is largely driven by semiconductors. He explained that both semiconductor prices and volumes are at high levels, suggesting that future export trends may depend on the semiconductor market conditions.
According to customs data, semiconductor exports surged by 206.1%, driving overall exports. Other categories such as SSDs (up 366.8%), petroleum products (up 64.9%), and chemical products (up 14.1%) also saw increases. In contrast, exports of passenger cars fell by 30.1%, and ship exports dropped by 45.2%. IT product exports rose by 162.6%, while non-IT product exports increased by 8.1%.
Yu Seong-wook, head of the Bank of Korea's Financial Statistics Department, stated, "Semiconductor prices have risen by over 100%, and in August, volumes also increased by nearly 10%. The non-semiconductor sector is not performing poorly either."
The services balance recorded a deficit of $1.68 billion, a reduction from the previous month's deficit of $1.97 billion. The travel balance deficit widened from $340 million to $770 million due to the peak travel season, but the transportation balance surplus increased from $60 million to $520 million.
The primary income balance recorded a surplus of $1.92 billion, down from $4.35 billion the previous month. The surplus from dividend income decreased from $3.83 billion to $1.18 billion due to quarterly dividend payments.
The financial account net assets increased by $40.23 billion. Domestic investors' overseas securities investments rose by $16.6 billion, marking the second-largest increase on record. Notably, overseas bond investments increased by $6.44 billion, the highest ever. However, foreign investments in domestic securities decreased by $4.85 billion.
Park Seong-gon, head of the Bank of Korea's International Balance of Payments Team, noted, "Recent investments in U.S. long-term government bonds have continued, particularly among institutional and individual investors. The decline in foreign investments in domestic government bonds compared to the first half of the year is due to a significant reduction in arbitrage incentives."
The Bank of Korea believes that the current account surplus could reach the revised annual forecast of $450 billion. Yu stated, "Based on the current account trends up to August, we are generally aligned with the annual forecast. The trade balance for September has also shown a surplus exceeding expectations, suggesting we may achieve the forecast by year-end. However, large corporate dividends and uncertainties from the Middle East conflict are factors to consider."
Regarding the September current account outlook, he added, "September customs exports appear to be very high, so we expect September to perform even better than August."
* This article has been translated by AI.
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