Last year, South Korea's trade surplus with the United States decreased as the service account deficit widened. The current account with China recorded a deficit for the fourth consecutive year.
According to preliminary statistics released by the Bank of Korea on June 19, the current account surplus with the U.S. was recorded at $111.42 billion last year.
The goods trade surplus with the U.S. increased by $2.77 billion from the previous year to $111.98 billion, driven by a rise in exports. While exports of goods subject to U.S. tariffs declined, exports of IT products, including semiconductors and smartphones, increased, totaling $185.22 billion.
The service account deficit grew from $8.88 billion the previous year to $14.62 billion last year, largely due to increased payments for intellectual property rights. Payments for intellectual property rights, including trademark fees to foreign headquarters of global companies and payments for domestic companies' overseas industrial property rights, amounted to -$4.28 billion.
Park Seong-gon, head of the Bank of Korea's International Balance of Payments Team, explained, "As production of advanced technology products increases, payments for intellectual property rights such as trademarks and industrial property rights also rise. The expansion of overseas service usage, including global OTT platforms, appears to have impacted the service account deficit as well."
The current account with China recorded a deficit of $25.32 billion, marking a deficit for the fourth consecutive year due to an increase in the goods trade deficit. The goods trade deficit grew from $29.31 billion in 2024 to $33.84 billion in 2025 due to a decline in exports.
The primary income account with China saw an increase in dividend income, which expanded the surplus, but the goods trade deficit widened due to decreased exports of chemical products and steel.
With Japan, South Korea recorded a deficit of $20.3 billion last year, widening from a deficit of $17.97 billion the previous year. The goods trade deficit increased due to a decline in exports of petroleum products and an increase in imports of semiconductor manufacturing equipment, while the service account deficit also grew due to increased travel payments.
The current account surplus with the European Union increased to $24.42 billion, up from $22.22 billion the previous year. The goods trade surplus expanded due to increased exports of semiconductors, SSDs, and passenger cars, while the primary income account surplus also grew due to a decrease in dividend payments.
Park noted, "It is difficult to quantify the exact impact of export diversification in response to U.S. tariffs, but it may have contributed to some extent. In the case of passenger cars, there was a strategic decision to shift domestic production to the EU market in response to changes in export conditions to the U.S., which appears to have led to an expanded surplus due to high demand for eco-friendly vehicles in the EU market."
In Southeast Asia, the current account surplus increased from $63.44 billion the previous year to $71.84 billion last year, driven by increased exports of semiconductors. The service account also returned to a surplus due to increased travel and other business service imports.
In the Middle East, the deficit decreased from -$67.96 billion the previous year to -$49.75 billion, influenced by a decline in energy imports due to falling international oil prices. In Latin America, the surplus grew to $7.41 billion, up from $2.03 billion the previous year.
* This article has been translated by AI.
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