March Surplus Hits $37.33 Billion, First Above $30 Billion
South Korea’s current account surplus exceeded $30 billion on a monthly basis for the first time ever, driven by strong semiconductor exports and an increase in dividend income. (Business Korea file photo)
South Korea’s current account surplus exceeded $30 billion on a monthly basis for the first time ever, driven by strong semiconductor exports and an increase in dividend income.
According to the “Preliminary Balance of Payments for March 2026” released by the Bank of Korea on May 8, the current account recorded a surplus of $37.33 billion in March. The surplus expanded significantly compared to the previous month ($23.19 billion).
Kim Young-hwan, Director General of the Economic Statistics Department 1 at the Bank of Korea, said at a briefing held on the day, “The monthly current account has remained in surplus for 35 consecutive months since May 2023,” adding, “On a monthly basis, it surpassed $30 billion for the first time ever, marking a record surplus for two consecutive months.”
The cumulative current account surplus for January through March this year also came to $73.78 billion, the largest on record for a first quarter. The improvement in the current account was led by the goods balance. The goods balance in March posted a surplus of $35.07 billion. Exports reached $94.32 billion, up 56.9% from the same month a year earlier, while imports stood at $59.24 billion, up 17.4%.
Notably, growth in exports of IT items, centered on semiconductors, was particularly pronounced. Semiconductor exports on a customs clearance basis surged 149.8% year-on-year to $32.97 billion. Total exports of electrical and electronic products also rose 112.7%.
Kim said, “IT items continued to perform well, led by semiconductors and computer peripherals,” adding, “Non-IT items also maintained strong growth, supported by an increase in working days and rising petroleum product prices.”
The services balance recorded a deficit of $1.29 billion, but the travel balance turned to a surplus of $140 million. This marked the first time the travel balance had posted a surplus in 136 months since November 2014.
“The number of inbound visitors increased significantly due to the spring travel peak season and large-scale K-pop concerts,” Kim said. “The number of inbound visitors in March exceeded 2 million for the first time.” He added, “At this point, it appears to be more of a steady upward trend in visitor numbers rather than a one-time occurrence.”
The primary income balance recorded a surplus of $3.58 billion. In particular, the dividend income balance posted a surplus of $2.7 billion, driving the overall improvement in the primary income balance.
However, the possibility of a prolonged Middle East conflict was identified as a variable. “In March, the impact of the war was not significant, but starting in April, the effects of rising energy prices will begin to be reflected,” Kim said, warning, “If the rise in energy prices is prolonged, it could act as downward pressure on the annual current account.”
He further assessed, “The situation does not yet appear to be severe enough to significantly disrupt semiconductor production and export trends,” and noted, “The trade balance on a customs clearance basis is also at a favorable level at present.”
Meanwhile, the financial account in March recorded a net increase in assets of $36.99 billion. Foreign investment in domestic securities decreased by $34.04 billion, centered on equities, but the Bank of Korea noted that foreign net purchases of domestic equities have been partially recovering in recent months.
Jung Suk-yee
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