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The Bank of Korea reported that the current account surplus narrowed to $42.08 billion in July from a record $49.73 billion in June while still marking the 39th consecutive month of surplus. Goods trade generated a $40.43 billion surplus during the month as exports jumped 65.3 percent year on year to $100.45 billion and imports increased 21.7 percent to $60.02 billion. The central bank attributed much of the export performance to sustained global demand for semiconductors linked to artificial intelligence applications.
Bank of Korea data places the primary income surplus at $4.35 billion in July, an increase from $3.27 billion a month earlier on higher equity income. The services account widened to a $1.97 billion deficit from $1.21 billion previously, reflecting larger shortfalls in manufacturing services and intellectual property payments. The secondary income deficit also grew to $0.73 billion from $0.14 billion as outbound payments rose.
Cumulative current account surpluses for the first seven months of 2026 reached $233.09 billion, a substantial rise from $59.82 billion in the comparable period of 2025 according to the central bank’s figures. South Korea has maintained a current account surplus every month since May 2023, a run that has supported external balances amid volatile global conditions. The latest monthly outcome aligns with preliminary trade data that showed a $30.32 billion goods surplus for July.
A Bloomberg report highlighted that the AI-driven semiconductor boom has propelled recent record surpluses, with June’s goods balance reaching an all-time high of $47.9 billion on exports exceeding $112 billion. Reuters polls of economists had projected July export growth to ease from June’s pace but remain robust, forecasting a trade surplus near $30 billion that ultimately materialised close to that level. Semiconductor shipments climbed nearly 179 percent year on year in July to top $41 billion, the trade ministry separately reported.
The central bank raised its benchmark interest rate by 25 basis points to 2.75 percent in July, citing faster-than-expected economic growth and persistent inflation risks tied to the export surge. Second-quarter gross domestic product expanded 0.6 percent from the prior quarter, beating estimates and contributing to an upward revision in full-year growth forecasts. Bank of Korea officials indicated that sustained export performance could push annual growth considerably above earlier projections.
Exports in July set a record for the month at nearly $99 billion, with 19 of 20 key export categories posting gains according to the Ministry of Trade, Industry and Resources. Semiconductor and computer-related shipments led the advance while non-semiconductor exports rose 26 percent. The strength has continued into August with preliminary data showing further double-digit growth in outbound shipments.
