According to Yonhap News,
(Seoul = Yonhap News) Reporter Han Ji-hoon – Driven by a major boom in semiconductor exports, South Korea recorded its largest-ever monthly trade surplus in May, approaching nearly KRW 60 trillion in international trade.
According to preliminary balance of payments statistics released by the Bank of Korea on the 8th, the current account for May of this year logged a surplus of USD 38.61 billion (approximately KRW 58.6 trillion).
On a monthly basis, this represents the largest surplus in history, eclipsing the previous record of USD 37.93 billion set in March of this year.
The cumulative current account surplus from January to May of this year reached USD 141.28 billion, more than quadrupling the USD 33.9 billion recorded during the same period last year.
Breaking down the May current account by sector, the goods balance surplus marked an all-time high of USD 37.86 billion, overtaking the previous record of USD 35.68 billion set in March.
Exports (USD 94.34 billion) surged 62.9 percent year-on-year. While the sharp export expansion for semiconductors and information communications equipment sustained its strong momentum, the growth pace of petroleum products also accelerated.
By product category on a customs-cleared basis, substantial increases were observed in computer peripherals (249.4 percent), semiconductors (167.7 percent), petroleum products (49.1 percent), and chemical products (11.0 percent).
By destination, exports posted robust performances across China (80.8 percent), Southeast Asia (74.4 percent), the United States (59.4 percent), Latin America (43.2 percent), Japan (12.6 percent), and the Eurozone (EU, 3.2 percent). Conversely, exports to the Middle East dropped by 7.5 percent.
Imports (USD 56.48 billion) also grew by 22.2 percent, though the rate remained lower than the pace of export growth.
Capital goods imports rose 28.0 percent, spearheaded by semiconductors (61.1 percent), semiconductor manufacturing equipment (54.9 percent), and information communications equipment (7.7 percent).
Raw material imports increased 22.1 percent, primarily driven by petroleum products (70.5 percent), coal (37.2 percent), chemical products (27.6 percent), and crude oil (24.8 percent), while consumer goods imports edged up by 1.8 percent.
The services balance registered a deficit of USD 1.09 billion. However, the deficit size narrowed compared to both the same month last year (negative USD 2.56 billion) and the previous month (negative USD 2.42 billion).
Within the services balance, the travel balance bounced back to a surplus of USD 50 million. After logging a surplus in March (USD 140 million) for the first time in 11 years and 4 months, it had briefly dipped into a deficit in April (negative USD 30 million) before reversing back to a surplus, supported by a 19.4 percent year-on-year increase in inbound travelers during May.
The primary income balance shifted from a deficit of USD 2.53 billion in April to a surplus of USD 2.17 billion in May. As dividend payouts subsided following the resolution of seasonal factors from the prior month, the dividend income balance swung from a deficit of USD 3.02 billion to a surplus of USD 1.15 billion.
Net assets in the financial account (assets minus liabilities) increased by USD 31.08 billion, marking the second-largest expansion in history following the record-high surge in March (USD 36.99 billion).
In direct investment, overseas investment by South Korean residents grew by USD 4.56 billion, while foreign direct investment into South Korea increased by USD 2.69 billion.
In portfolio investment, overseas investment by residents rose by USD 6.24 billion, centered on equities. Meanwhile, foreign investment in South Korea dropped by USD 24.65 billion, primarily in equities.
Foreign domestic equity investment plummeted by USD 31.05 billion, marking the sharpest decline in history. This widening drop was accelerated by profit-taking sell-offs following rallies in the domestic stock market.
On the other hand, foreign investment in debt securities increased by USD 6.4 billion, propelled by inflows tracking the World Government Bond Index (WGBI).
hanjh@yna.co.kr
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Source Text
Source: Yonhap News (July 08, 2026)
** This article was translated from Korean.