The surplus narrowed from June's record $49.73 billion but remained above $40 billion for a second month, extending the surplus streak to 39 months, according to preliminary Bank of Korea (BOK) data.
The January-July surplus nearly quadrupled to $233.09 billion from $59.82 billion a year earlier and was already about 1.9 times the $123.05 billion recorded in all of 2025.
The BOK last week raised its 2026 current account surplus forecast to $450 billion from $250 billion, citing stronger semiconductor exports and a wider goods surplus.
The goods account posted its second-largest surplus of $40.43 billion as exports rose 65.3 percent from a year earlier to $100.45 billion, while imports increased 21.7 percent to $60.02 billion.
On a seasonally adjusted basis, the current account surplus declined 8.0 percent to $40.89 billion from $44.43 billion, compared with a 15.4 percent drop in the unadjusted figure.
Customs-cleared information technology exports jumped 140.6 percent as semiconductor shipments surged 176.3 percent to $41.17 billion, accounting for 41.6 percent of the $98.96 billion in total customs-cleared exports. Non-IT exports rose 18.3 percent.
Raw material imports increased 29.1 percent on higher purchases of crude oil, gas and coal, while capital goods imports rose 36.7 percent on increased purchases of semiconductors and chipmaking equipment.
Consumer goods imports fell 3.0 percent, marking their first decline in 15 months.
The services account deficit widened to $1.97 billion as the travel balance swung to a $340 million deficit from a $440 million surplus in June, reflecting the summer travel season and increased outbound travel, the BOK said.
The primary income surplus increased to $4.35 billion from $3.27 billion as the dividend income surplus reached $3.83 billion, which the BOK attributed to higher earnings at semiconductor companies' overseas sales units.
The financial account posted its second-largest net asset increase of $40.32 billion.
Foreign equity investment in Korea increased by $5.98 billion after falling by $31.61 billion in June. The BOK attributed the turnaround to SK hynix's American depositary receipt issuance and reduced selling of domestically issued shares.
Still, Korean residents' overseas stock purchases were more than twice foreign investment in Korean equities.
Residents increased their overseas equity investment to $12.33 billion from $7.53 billion in June, leaving portfolio investment with a $5.40 billion net asset increase. Other investment recorded a $27.56 billion net asset increase.
AJP Takeaways
• South Korea posted a $42.08 billion current account surplus in July, the second-largest on record and the second straight month above $40 billion.
• Semiconductor exports surged 176.3 percent and accounted for 41.6 percent of customs-cleared exports, while semiconductor companies' overseas units also lifted dividend income.
• Foreign equity investment in Korea rebounded by $5.98 billion after a $31.61 billion decline in June, helped by SK hynix's ADR issuance, although Korean overseas equity purchases were more than twice as large.
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