Current account beats BOK’s 115 billion dollar annual forecast
December surplus hits 18.7 billion dollars, the largest monthly figure on record
Driven by record exports led by semiconductors and higher dividend income
Last year, South Korea's current account surplus exceeded 123 billion dollars, setting a new all-time record. This was driven by robust semiconductor exports, among other factors.
According to the provisional balance of payments for December 2025 released by the Bank of Korea on the 6th, South Korea’s annual current account surplus last year was 123.05 billion dollars. This surpassed not only the previous record high set in 2015 (105.12 billion dollars), but also the Bank of Korea’s projection of 115 billion dollars.
In December last year, the current account posted a surplus of 18.7 billion dollars. This was the largest monthly surplus on record, far exceeding the figures for the previous month (12.9 billion dollars) and for the same month a year earlier (12.74 billion dollars). It also marked the 32nd consecutive month of surplus, the second-longest run of surpluses since 2000. The strong export performance led by semiconductors continued, while an increase in dividend income significantly widened the primary income surplus, which played a decisive role.
The main driver of the current account surplus was the goods account, which accounts for the largest share. In December last year, the goods account surplus reached 18.85 billion dollars, the highest monthly figure ever recorded. This reflected exports hitting an all-time high in value. Exports came to 71.65 billion dollars, up 13.1 percent from a year earlier. Information technology products maintained strong growth centered on semiconductors and information and communications devices, while non-IT products also increased mainly in machinery and precision instruments, as well as pharmaceuticals.
Based on customs-clearance data, semiconductor exports in December last year totaled 20.92 billion dollars, a sharp increase of 43.1 percent from the same month a year earlier. Computer peripherals (33.1 percent) and wireless communication devices (24.0 percent) also performed strongly, pushing IT exports up by 32.4 percent. Non-IT exports likewise rose 2.1 percent, led by pharmaceuticals (27.3 percent) and machinery and precision instruments (2.9 percent). Passenger cars (-4.2 percent) and steel products (-1.7 percent) declined from a year earlier.
Imports increased 1.7 percent to 52.8 billion dollars. Although lower energy prices kept raw materials on a downward trend, including petroleum products (-35.2 percent), coal (-20.9 percent), gas (-7.6 percent), and crude oil (-3.5 percent), resulting in a 1.0 percent decrease in raw materials overall, imports still rose for the second consecutive month as consumer goods imports jumped 17.9 percent, driven mainly by passenger cars and gold.
The services account recorded a deficit of 3.69 billion dollars. The deficit widened compared with both a year earlier (-2.38 billion dollars) and the previous month (-2.85 billion dollars). The travel account posted a deficit of 1.4 billion dollars. The number of outbound travelers increased during the winter vacation peak season for overseas travel, which expanded the deficit compared with the previous month (-970 million dollars).
The primary income account surplus surged to 4.73 billion dollars from 1.53 billion dollars a month earlier. This was mainly because the impact of quarterly dividend payments on portfolio investment in the previous month dissipated, causing the dividend income surplus to jump from 930 million dollars to 3.71 billion dollars.
In the financial account, net assets (assets minus liabilities) increased by 23.77 billion dollars in December last year. In direct investment, overseas investment by residents rose by 6.49 billion dollars, while investment in South Korea by non-residents increased by 5.17 billion dollars. In portfolio investment, overseas investment by residents increased by 14.37 billion dollars, mainly in equities, while investment in South Korea by non-residents grew by 5.68 billion dollars, mainly in bonds.
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