According to Yonhap News Agency's report on October 25, South Korea's current account surplus reached $116.63 billion in the second quarter of this year, exceeding the combined amount of Germany and Japan, which was $102.89 billion. This is the first time since 1996 when comparable data became available that South Korea has achieved such a surplus.
According to the Economic Statistics System of the Bank of Korea, among the 36 major economies that have released their second-quarter data, South Korea’s trade surplus ranks second only to China. South Korea’s trade surplus in this quarter was 4.1 times higher than the same period last year, mainly driven by rising semiconductor prices and increased exports.
The International Monetary Fund (IMF) estimates that South Korea will have a current account surplus of approximately 421.9 billion US dollars this year, making it the country with the largest surplus among the 190 economies included in the statistics. The surplus will account for 18.8% of the country's gross domestic product (GDP), setting a new record since statistics began in 1980.
Korea Gatu University economics professor Liang Junyi warned that the current trade surplus is mainly due to the rising prices of semiconductors. If the investment boom in artificial intelligence (AI) cools down or competitors increase supply, the trade surplus could significantly narrow.
The Korean government has indicated that it is expanding investment in new industries and enhancing the competitiveness of the service sector in order to strengthen domestic demand as a support for the economy, in response to the slowdown in external demand.
