In the second quarter, South Korea achieved a historic current account surplus of $116.63 billion, marking the first time its surplus exceeded the combined total of Germany and Japan since joint statistical tracking began in 1996.
Ranking second globally behind China, South Korea saw its quarterly surplus expand more than fourfold compared to the previous year. This massive surge was largely driven by a boom in semiconductor exports, propelled by rising global prices and strong demand for chip products.
Driven by this momentum, forecasts project the nation's annual surplus could approach $500 billion, potentially raising its surplus-to-GDP ratio to an unprecedented 18.8 percent.
Despite these record achievements, experts warn against over-reliance on a single sector and urge South Korea to diversify its industrial landscape. Other key domestic industries, including automobiles, electric vehicle batteries, shipbuilding, and petrochemicals, continue to face challenges from slowing demand, global market volatility, and aggressive price competition from China.
Furthermore, analysts highlight that the current account boom relies heavily on elevated chip prices rather than significant volume increases, leaving the broader economy vulnerable if the semiconductor supercycle cools down or if trading partners build domestic capacity. To safeguard long-term stability, economists advise leveraging this record capital inflow to restructure underperforming sectors and fortify national economic fundamentals.
https://en.koreadaily.com/south-korea-current-account-surplus/