Lead

South Korea recorded its largest-ever monthly current account surplus in March, fueled by strong exports of semiconductors and other information technology products, according to data from the Bank of Korea (BOK) released on Friday.

The current account surplus totaled US$37.33 billion in March, up from $23.19 billion in February, as reported by Yonhap News Agency. This surpassed the previous record set just a month earlier. The country has now posted a surplus every month since May 2023, extending its winning streak to 35 consecutive months, the second longest in its history.

Coverage comparison

All reporting on this story originates from Yonhap News Agency, South Korea's leading wire service, with multiple versions of the same report providing varying levels of detail. The most comprehensive version includes comments from a BOK official, data on travel accounts, and additional context on the impact of the U.S.-Iran conflict. The more concise versions contain only the headline figures: the total surplus and the fact that it was the largest ever.

Key claims

The goods account, which tracks trade in physical products, posted a surplus of $35.07 billion in March, a record high, according to the detailed Yonhap report. Exports surged 56.9 percent year-on-year to a record $94.32 billion, while imports rose 17.4 percent to approximately $59.24 billion.

The boom was concentrated in technology products. Exports of IT goods soared 111.7 percent from a year earlier, including a 149.8 percent surge in chip shipments and a 167.5 percent rise in computer peripherals, according to the same source.

The services account, covering areas like travel and business services, recorded a deficit of $1.29 billion in March, largely due to higher payments for other business services. However, the travel account logged a surplus of $140 million — the first in more than 11 years — thanks to a surge in foreign visitors, including those attending concerts by the K-pop group BTS. Yonhap reported that more than 2 million foreigners visited South Korea during the month.

The primary income account, which includes wages, dividends, and interest from abroad, posted a surplus of $3.58 billion, driven primarily by dividend earnings. The secondary income account, which covers transfers such as remittances, recorded a $790 million deficit.

In the financial account, South Korea's net assets increased by $36.99 billion in March, up sharply from a $22.8 billion rise the previous month, according to the report.

Perspectives

Kim Young-hwan of the BOK's financial statistics department, quoted in the detailed Yonhap report, said the U.S.-Iran war had hardly affected goods exports and imports in March. He noted that the impact would be seen in April, but it is not strong enough to change the overall trend. He also said the prolonged current account surplus trend is expected to continue beyond April, with the pace of chip exports and the duration of Middle East tensions as key factors.

While the record surplus highlights South Korea's export strength, the services account deficit and the ongoing impact of geopolitical tensions remain points of attention. The BOK's comments suggest that a potential slowdown in chip demand or an escalation of the Middle East conflict could alter the trajectory.