The current account recorded a surplus of $42.08 billion in July, the Bank of Korea said on the 4th. Although it narrowed from the record surplus in June ($49.73 billion), it was higher than May ($38.61 billion), marking the second-largest on record. Boosted by strong semiconductor exports, the surplus topped $40 billion for a second straight month. The cumulative current account surplus for January–July came to $233.09 billion, about twice last year's full-year record ($123.0538 billion).
According to the Bank of Korea's "provisional balance of payments for July" released that day, the goods balance posted a surplus of $40.43 billion. This also decreased from the record in June ($47.89 billion) but was the second-largest on record.
Goods exports totaled $100.45 billion. With strong semiconductor exports continuing, exports topped $100 billion for a second consecutive month. In particular, IT items jumped 140.6% from a year earlier. Computer peripherals rose 344.5%, semiconductors 176.3%, and wireless communication devices 51.2%, respectively. Non-IT items also increased 18.3% in the same period. Petroleum products (35.7%) and chemical products (19.1%) showed clear gains.
Goods imports were $60.02 billion, up 21.7% from a year earlier. The rise in global oil prices drove a 29.1% increase in raw material imports. Among raw materials, crude oil (54.2%), gas (46.8%), and coal (36%) saw notable increases. Consumer goods, by contrast, fell 3%. It was the first decline in 15 months.
The services account posted a deficit of $1.97 billion. As artificial intelligence (AI) services increased, the intellectual property royalties balance recorded a deficit of $540 million, and with foreign tourist numbers not rising sharply, the travel balance swung to a $340 million deficit.
Foreign investors were net buyers of $5.98 billion in domestic stocks. This marked a shift to buying from the record net selling of $31.61 billion in the previous month. The domestic stock market's pullback eased selling pressure, and SK hynix issued American depository receipts (ADR). Foreign investors were also net buyers of $2.19 billion in bonds, but the amount was smaller than the previous month ($5.29 billion).
Koreans were net buyers of $12.33 billion in overseas stocks, up from the previous month ($5.29 billion). This is seen as the result of more so-called "seohak ants," who invest in U.S. stocks. Overseas bond investment shifted from net selling of $3.98 billion in June to net buying of $1.24 billion in July.
Accordingly, the financial account net worth increased by $40.32 billion. Although it was down from the record in the previous month (up $46.71 billion), it was the second-largest on record. Overseas direct investment assets came to $3.36 billion, with the pace of increase slowing, and direct investment liabilities fell by $780 million.