South Korea Posts Largest-ever November Current Account Surplus Driven By Exports And Chip Upcycle

The Republic of Korea recorded its biggest current account surplus for any November on record, as strong semiconductor and vehicle exports lifted external earnings. The Bank of Korea reported a surplus of US$12.24 billion for November, almost double October’s US$6.81 billion figure.

Korea has posted a current account surplus every month since May 2023, forming the second-longest positive run ever recorded. Since the central bank began tracking the data in 1980, November 2023 marked the highest surplus for that month, according to figures cited by Yonhap News Agency.

Across the first eleven months of 2023, the cumulative current account surplus reached US$101.82 billion. The Bank of Korea said this exceeded the US$86.68 billion recorded over the same period in 2022, setting a new high for that January-to-November timeframe and underlining resilient external balances.

The goods account posted a surplus of US$13.31 billion in November, improving from October’s US$7.82 billion. Exports rose 5.5 percent year-on-year to US$60.11 billion. Semiconductor shipments jumped 38.7 percent from a year earlier, while vehicle exports increased 10.9 percent. Imports slipped 0.7 percent to US$46.8 billion.

Key elements of Korea’s November external position are summarised below in line with the Bank of Korea release.

The services account showed a deficit of US$2.73 billion in November, mainly reflecting higher spending by Korean travellers overseas. However, this gap narrowed from a US$3.75 billion deficit in October. The primary income account recorded a surplus of US$1.83 billion, supported largely by dividend earnings, while secondary income posted a US$180 million deficit.

Korea current account surplus and financial account developments

In the financial account, Korea’s net external assets increased by US$8.27 billion during November. This compared with a US$6.81 billion rise a month earlier. The wider gain suggests continued overseas investment and lending activity alongside the strong current account position.

Taken together, November’s record surplus, solid goods trade and firmer primary income flows highlight a robust external profile for Korea. The ongoing surplus streak and higher net external assets may remain an important reference point for global investors and regional policymakers tracking trade and capital trends.

With inputs from WAM