South Korea recorded its largest July current account surplus on record, buoyed by strong exports and higher investment income, according to central bank figures released on September 4, the Yonhap News Agency has reported.

The Bank of Korea reported a surplus of $10.78bn for July, extending the country’s run of consecutive monthly surpluses to 27, dating back to May 2023. Although the figure set a new record for the month, it was lower than June’s all-time monthly peak of $14.27bn.

Between January and July, the current account surplus accumulated to $60.15bn, well above the $49.21bn registered in the same period last year and is already being seen as an indicator that the nation's economy is on the mend after more than six months of political turmoil that led to former President Yoon being impeached. 

Trade performance remained the key driver. Exports rose 2.3% year-on-year to $59.78bn, while imports fell slightly by 0.9% to $49.51bn, leaving the goods account with a surplus of $10.27bn.

Services continued to weigh on the overall balance, posting a $2.14bn deficit, largely attributed to strong outbound travel demand. By contrast, the primary income account – covering interest, dividends and wages of foreign workers – posted a $2.95bn surplus.

Officials also noted that new United States tariff measures are already being felt in some sectors, particularly affecting exports of cars, car parts and steel. The impact is expected to deepen as reciprocal tariffs, introduced in August, take hold.