Did South Korea Achieve a Record Current Account Surplus with the US in 2024?
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Synopsis
South Korea has made headlines with a record current account surplus with the US, primarily driven by semiconductor exports, while facing challenges with China. This remarkable economic performance sheds light on the evolving trade dynamics in the region.
Key Takeaways
- Record current account surplus of $118.23 billion with the US.
- Surplus driven by strong semiconductor exports.
- Current account deficit with China narrowed slightly.
- Significant surplus increase with the EU and Southeast Asia.
- Overall current account surplus rose to $99.04 billion.
Seoul, June 20 (NationPress) South Korea has reached a historic current account surplus with the United States last year, primarily fueled by robust semiconductor exports. Meanwhile, the nation experienced a current account deficit with China, as indicated by data from the central bank released on Friday.
The surplus with the US soared to an unprecedented $118.23 billion in 2024, an increase from the $87.76 billion surplus recorded the prior year, according to the Bank of Korea (BOK), as reported by Yonhap news agency.
“This growth is attributed to the surge in exports of semiconductors and information and communication technology equipment, alongside a growing surplus in the primary income account due to enhanced dividend income,” stated the BOK in a release.
Conversely, South Korea recorded a current account deficit of $29.04 billion with China in 2024, a slight improvement from the $29.25 billion deficit in the previous year.
With Japan, the deficit also narrowed to $12.72 billion from $15.77 billion, despite an expansion in the service account deficit linked to increased travel expenditures.
The current account surplus with the European Union nearly tripled, rising from $5.85 billion in 2023 to $17.09 billion last year, bolstered by strong export activity, as per the BOK.
Additionally, South Korea reported a $56.52 billion surplus with Southeast Asian countries last year, while facing a $69.02 billion deficit with the Middle East.
Overall, South Korea’s current account surplus grew to $99.04 billion in 2024, a significant increase from $32.82 billion a year earlier, according to the data.
In the meantime, South Korean stocks opened positively on Friday, continuing their upward trend, led by gains in major tech shares.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 9.23 points, or 0.31 percent, to 2,986.97 in the first 15 minutes of trading.
Wall Street was closed overnight due to a federal holiday in the United States marking the end of slavery.
Point of View
It’s essential to recognize South Korea’s impressive economic performance, particularly in its trade with the US. The surge in semiconductor exports showcases our competitive edge in technology, while ongoing deficits with China highlight the complexities of international trade. Our economic strategies must adapt to these dynamics for sustained growth.
NationPress
20/06/2025
Frequently Asked Questions
What was the current account surplus of South Korea with the US in 2024?
The current account surplus of South Korea with the US reached an all-time high of $118.23 billion in 2024.
What factors contributed to the increase in South Korea's surplus with the US?
The increase was primarily driven by rising exports of semiconductors and information and communication technology equipment.
How did South Korea's current account perform with China in 2024?
South Korea recorded a current account deficit of $29.04 billion with China in 2024, though it was a slight improvement from the previous year's deficit.
What was the overall current account surplus of South Korea in 2024?
Overall, South Korea's current account surplus widened to $99.04 billion in 2024.
How did the KOSPI perform recently?
The KOSPI rose 9.23 points, or 0.31 percent, reaching 2,986.97 in early trading on Friday.
