The current account with the United States last year posted a surplus of $111.42 billion, down from the previous year's $116.97 billion surplus, the Bank of Korea said on the 19th. It was the first time since 2020 that the size of the current account surplus with the U.S. had decreased. The Bank of Korea explained that U.S. tariff policy reduced exports of key items such as automobiles, steel and machinery. The current account refers to the difference between money Korea earned and spent through transaction with foreign countries.
According to the "2025 regional balance of payments preliminary figures" released that day by the Bank of Korea, the goods balance with the U.S. recorded a surplus of $111.98 billion. Exports of IT items such as semiconductors and mobile phones increased. In contrast, the services balance posted a deficit of $14.62 billion, widening from the previous year's shortfall. The increase was driven by higher intellectual property royalties, including artificial intelligence (AI) subscriptions and online video services (OTT) such as Netflix.
Meanwhile, the current account with China recorded a deficit of $25.32 billion, marking a deficit for the fourth straight year since turning negative in 2022. A Bank of Korea official said, "Domestic demand in China is weak and growth is slowing," and noted, "Imports of China-made automobiles into Korea have also increased."
Southeast Asia was the next-largest source of a current account surplus after the United States. The current account with Southeast Asia was $71.84 billion, up from $63.44 billion a year earlier. Exports of semiconductors and semiconductor equipment increased, and the services balance also swung to a surplus as the number of Southeast Asian travelers visiting Korea rose.
Japan's current account posted a deficit of $20.3 billion. Imports of semiconductor manufacturing equipment from Japan increased, and more Korean tourists traveled to Japan. In particular, as the number of departures to Japan hit an all-time high, the travel balance recorded a deficit of $5.71 billion.