![Export-bound containers are stacked at Pyeongtaek Port in Gyeonggi on Sept. 4. [NEWS1]](https://imgnews.pstatic.net/image/640/2025/09/04/0000076207_001_20250904180114714.jpg?type=w860)
Korea logged the largest current account surplus for the month of July, driven by solid exports of chips and vessels as well as an increase in income from equity, central bank data showed Thursday.
Asia's fourth-largest economy's current account surplus reached $10.78 billion in July, extending its surplus streak to the 27th consecutive month, according to data compiled by the Bank of Korea (BOK).
Korea has reported a current account surplus every month since May 2023. This is the second-longest surplus streak for Korea in the 2000s.
The current account measures all economic transactions between Korea and the rest of the world, including trade in goods and services as well as income, and serves as a key gauge of the economy's underlying strength.
While it marked the highest July figure on record, the surplus narrowed from the all-time monthly high of $14.27 billion posted in June.
During the first seven months of this year, the cumulative current account surplus stood at $60.15 billion, compared to $49.21 billion recorded during the same period last year.
The goods account, which makes up the largest portion of the account balance, logged a $10.27 billion surplus in July. Exports advanced 2.3 percent from a year earlier to $59.78 billion, while imports edged down 0.9 percent to $49.51 billion.
![Export-bound cars are lined up at Pyeongtaek Port in Gyeonggi on Sept. 4. [YONHAP]](https://imgnews.pstatic.net/image/640/2025/09/04/0000076207_002_20250904180114785.jpg?type=w860)
The trade surplus climbed on exports of semiconductors, which gained 30.6 percent on year, and ships, which surged 114 percent.
Exports to Southeast Asia and the European Union (EU) jumped 17.2 percent and 8.7 percent, respectively, on year. By contrast, exports to Japan slid 4.7 percent and those to China declined 3 percent over the same period.
Nevertheless, the BOK warned that U.S. tariffs, implemented in early August, are starting to weigh on exports, particularly on key industries like auto, auto parts and steel. The central bank expects car shipments to decline as higher tariffs push up prices, dampening demand after companies had refrained from passing on costs.
Korea's exports in August rose 1.3 percent from a year earlier, as a sharp decline in shipments to the United States — down 12 percent, the steepest drop since May 2020 — weighed on overall growth.
"The new U.S. tariff policies have begun to affect exports, particularly shipments of automobiles, auto parts and steel products," BOK official Song Jae-chang said during a press briefing held Thursday in central Seoul. "As reciprocal tariffs took effect in August, the impact is expected to become increasingly apparent."
Still, semiconductor exports are projected to remain strong through next year on the back of increased AI infrastructure investment, Song said.
Automakers are working to diversify export markets beyond the United States, targeting such regions as the EU and Australia to mitigate the impact of U.S. tariffs, he added.
Korea's services account registered a $2.14 billion deficit due mainly to rising demand for overseas travel.
The primary income account, which tracks the wages of foreign workers, dividend payments from overseas and interest income, logged a $2.95 billion surplus in July, BOK data showed.
The secondary income account posted a $290 million deficit, narrowing from a $530 million shortfall the previous month but widening from a $110 million gap a year earlier, reflecting net outflows from transfers such as aid and remittances.
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