South Korea Posts Record $123 Billion Surplus Amid Diplomatic Hopes, Market Slide, and Cold Wave

Updated 2026-02-06 04:30:00+00:00 (5 articles)

Image: Yonhap

Containers are stacked at a port in the southeastern city of Busan, in this file photo from Jan. 28, 2026. (Yonhap) Source Full size
Image: Yonhap

This combined image shows the logos of Samsung Electronics Co. (L) and SK hynix Inc. (Yonhap) Source Full size

Record‑size current‑account balance confirmed for 2025 South Korea’s current‑account balance reached a historic US$123.05 billion in 2025, surpassing the Bank of Korea’s forecast of $115 billion and the previous peak of $105.1 billion set in 2015[2]. The surplus rose from $99.97 billion in 2024, reflecting strong external demand despite global headwinds[1][2]. Bank of Korea officials attributed the jump to a semiconductor super‑cycle and lower oil prices, while noting lingering U.S. tariff and geopolitical uncertainties[2].

Export surge driven by semiconductor boom and shipbuilding gains Goods exports hit a $138.07 billion surplus as total export value climbed 2.1 % to a new record $718.94 billion[2]. Semiconductor shipments jumped 21.9 % to $175.3 billion, anchoring the goods surplus, while vehicle exports rose modestly and ship exports surged 24 %[2]. The robust export performance underpinned the overall current‑account strength and helped set an $18.7 billion monthly surplus in December, the largest ever recorded[2].

Services deficit widens while primary‑income surplus modestly improves The services account posted a $34.52 billion deficit in 2025, larger than the $29.43 billion shortfall in 2024, driven mainly by weaker travel receipts and higher overseas IP payments[2]. Primary income contributed a $27.92 billion surplus, a slight increase from the previous year’s $26.78 billion, reflecting higher overseas dividends and interest earnings[2]. These component shifts balanced the overall current‑account picture, keeping the surplus robust despite the services weakness.

Parallel diplomatic, market, and weather developments unfold senior Seoul official in Washington signaled “new progress in a few days” on North Korea‑related issues, though not a restart of U.S.–Pyongyang talks, amid speculation about a possible Trump‑Kim meeting in April[1]. The U.S. State Department reaffirmed its nuclear umbrella for South Korea, emphasizing extended deterrence and denuclearization goals despite recent security document omissions[1]. Domestically, the KOSPI fell 4.77 % to 4,917.15 points as AI‑related investment concerns rattled markets, while a cold‑wave alert expanded to central and southern regions with temperatures expected between –15 °C and –5 °C[1]. Additionally, Coupang’s interim CEO Harold Rogers faced a second police interview over alleged perjury concerning a December data‑breach probe[1].

Sources

Timeline

2015 – South Korea records a $105.1 billion current‑account surplus, the previous all‑time high before the 2025 record is set, highlighting the rarity of such large balances in the country’s history[1].

May 2023 – South Korea begins a run of monthly current‑account surpluses, launching a streak that later becomes the second‑longest in national history and sets the stage for record‑breaking balances in 2025[5].

Oct 2025 – South Korea posts its 30th consecutive monthly surplus of $6.81 billion, keeping the streak alive since May 2023 and raising the year‑to‑date cumulative surplus to $89.58 billion[5].

Nov 2025 – South Korea posts a record November current‑account surplus of $12.24 billion, the largest November reading since data began in 1980, driven by a $13.31 billion goods surplus and a 38.7 % jump in chip exports; the 11‑month cumulative surplus reaches $101.82 billion, a new record[3][4].

Dec 2025 – South Korea posts an $18.7 billion current‑account surplus for December, the biggest monthly surplus ever, as a $18.85 billion goods surplus and 13.1 % export growth to $71.65 billion lift the balance[1].

2025 – South Korea’s current‑account balance totals $123.05 billion for the year, the highest on record and above the Bank of Korea’s $115 billion forecast, thanks to a 21.9 % surge in semiconductor shipments and a 24 % rise in ship exports[1].

Feb 6, 2026 – A senior South Korean official in Washington tells reporters that “some new progress in a few days” is expected on North‑Korea‑related issues, though it does not involve restarting U.S.–Pyongyang talks[2].

Feb 6, 2026 – U.S. State Department Deputy Spokesperson Mignon Houston reaffirms Washington’s commitment to an extended nuclear deterrence umbrella for South Korea and to “complete” denuclearisation of North Korea, while urging Seoul to address trade barriers under the pending bilateral trade deal[2].

Feb 6, 2026 – The Korea Composite Stock Price Index falls 246.42 points (‑4.77 %) to 4,917.15, slipping below the 5,000 level after Wall Street tech losses raise concerns that AI‑related investments could become financial burdens for major firms[2].

Feb 6, 2026 – The Korea Meteorological Administration expands the cold‑wave alert to cover most of the central region and parts of the south, forecasting morning temperatures of –15 °C to –5 °C and warning of heightened energy demand and daily‑life disruptions[2].

Feb 6, 2026 – Coupang interim CEO Harold Rogers faces a second police interview this week over alleged perjury concerning the company’s handling of a massive data breach disclosed in a parliamentary hearing late December[2].

Feb 2026 – Bank of Korea official Kim Young‑hwan attributes the record surplus to a “semiconductor supercycle” and to falling global oil prices, while noting lingering uncertainties from U.S. tariff policy and geopolitical risks, and he expects the surplus to remain solid through the year[1].

April 2026 – Speculation circulates that President Donald Trump may seek a meeting with North Korean leader Kim Jong‑un during an April visit to China, a development that could reshape regional diplomatic dynamics[2].

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