The Republic of Korea recorded its largest-ever current account surplus for any November, buoyed by robust exports amid an upcycle in the global semiconductor industry, central bank data showed.
According to the Bank of Korea (BOK), the country posted a current account surplus of $12.24 billion in November of last year, nearly doubling from $6.81 billion in October. It marked the highest November figure since the BOK began compiling the data in 1980.
South Korea’s exports rise 8.2 percent in early November on strong semiconductor, auto demand
Longest surplus streak since 2023
Korea has now logged a current account surplus every month since May 2023, representing the second-longest surplus streak on record.
For the first 11 months of last year, the cumulative surplus reached $101.82 billion, up sharply from $86.68 billion during the same period a year earlier, marking the largest surplus ever recorded for that timeframe, the BOK said.
Goods account surplus widens on export growth
The goods account posted a surplus of $13.31 billion in November, widening from $7.82 billion in the previous month, as exports climbed 5.5 percent on-year to $60.11 billion.
Semiconductor exports surged 38.7 percent from a year earlier, reflecting strong global demand, while automobile shipments rose 10.9 percent. Imports edged down 0.7 percent on-year to $46.8 billion, further supporting the trade surplus.
Services deficit narrows despite travel demand
The services account recorded a deficit of $2.73 billion in November, largely due to increased overseas travel by Koreans. However, the shortfall narrowed from a $3.75 billion deficit in October.
Income accounts show mixed results
The primary income account, which includes wages paid to foreign workers as well as dividend and interest income from overseas investments, posted a surplus of $1.83 billion, driven mainly by dividend earnings.
By contrast, the secondary income account recorded a deficit of $180 million, the data showed.
Financial account sees higher net asset growth
In the financial account, net assets increased by $8.27 billion in November, widening from $6.81 billion the previous month, reflecting continued outward investment and capital flows.
