Last year, Korea's current account posted a surplus exceeding $123.0 billion, setting an all-time record. Strong information technology (IT) exports led by semiconductors continued to drive the gains. The current account in December also recorded a $18.7 billion surplus, a new record high for a single month, extending the surplus streak to 32 consecutive months.
According to the balance of payments (preliminary) released by the Bank of Korea on Feb. 6, last year's current account recorded a surplus of $123.05 billion. This is the largest amount since related statistics began. Compared with 2024 ($99.97 billion), the surplus widened by $23.08 billion. It also exceeded the forecast presented by the Bank of Korea in November last year ($115.0 billion) by $8.05 billion.
The current account is a composite indicator that summarizes all economic transactions between countries—not only exports and imports of goods and services but also capital and labor—and consists of the goods balance, services balance, primary income balance, and secondary income balance.
Among these, the goods balance, which is exports minus imports, led the current account surplus with a $138.07 billion surplus. The surplus grew by $27.16 billion from the previous year ($110.91 billion), also a record high since statistics began. The previous record was $120.275 billion in 2015.
Exports (customs-cleared basis) rose 3.8% ($25.8 billion) from a year earlier to $709.4 billion. Semiconductor exports increased 21.9%, while ships (24%) and electrical and electronic products (13.3%) also rose, lifting overall exports. By region, exports to Southeast Asia increased 12.8%, followed by Latin America (6.8%), the Middle East (3.8%), and the European Union (EU, 3%). In contrast, exports to Japan (-4.4%), the United States (-3.8%), and China (-1.7%) declined.
Imports were $631.75 billion, down slightly from the previous year ($631.77 billion). While energy imports fell sharply—coal (-24.1%), petroleum products (-15%), gas (-12.1%), and crude oil (-11.8%)—imports of semiconductor manufacturing equipment rose 18.6% and passenger cars 10.3%. By item, imports of raw materials fell 7.4%, while capital goods and consumer goods increased 6.9% and 7.2%, respectively.
The services balance, which includes travel, transportation, and intellectual property royalties, posted a deficit of $34.52 billion. The deficit widened by $5.09 billion from a year earlier. The largest deficit was in other business services at $15.54 billion, followed by travel (-$13.49 billion), processing services (-$6.89 billion), and intellectual property royalties (-$4.16 billion). The construction balance recorded a $3.3 billion surplus.
The primary income balance, reflecting flows of wages, dividends, and interest, showed a $27.92 billion surplus. Although compensation of employees recorded a $2.25 billion deficit, investment income posted a $30.17 billion surplus, driving the overall surplus. Both primary income and investment income hit a record high. However, the secondary income balance recorded a $8.42 billion deficit.
Net worth in the financial account, which shows capital inflows and outflows, increased by $119.76 billion. Direct investment rose by $25.43 billion, and securities investment by $87.73 billion. Compared with the previous year, direct investment decreased by $11.43 billion, while securities investment increased by $42.12 billion.
In December last year, the current account recorded a $18.7 billion surplus, the largest on record. The surplus has continued for 32 consecutive months, the second-longest streak since the 83-month run from May 2012 to March 2019 in the 2000s. In December, the goods balance posted a $18.85 billion surplus as export growth outpaced imports, the services balance recorded a $3.69 billion deficit, and the primary income balance showed a $4.73 billion surplus.
The Bank of Korea (BOK) expects the current account to set a new all-time record again this year as strong semiconductor exports continue. In its Revised Economic Outlook released in November last year, the Bank of Korea (BOK) projected this year's current account surplus at $130.0 billion. That is $7.0 billion more than last year's result.
Kim Young-hwan, Director General of the Bank of Korea (BOK) Economic Statistics Department 1, said, "This year, the current account is expected to be influenced by the semiconductor supercycle," adding, "Although uncertainty over the U.S. reciprocal tariff and geopolitical risks are a concern, if international oil prices remain stable, the favorable trend we are seeing now should continue."
However, Kim noted that narrowing the gap between the information and communications technology (IT) sector and the non-IT sector is a task. He said, "Annual exports rose 2.1% last year, but excluding the IT sector they fell 1.1%. It would be desirable for our economy if the positive momentum in the IT sector spreads evenly across industries."