Bank of Korea releases August 2026 balance of payments (preliminary)

Goods balance reaches second-highest ever at $46.81 billion

Computer peripherals, semiconductors drive export surge

Travel deficit doubles; shipping surplus nearly ninefold

Overseas bond investment hits record high

Export and import cargo is stacked at Sinseondae Pier in Busan Port. [Yonhap]
Export and import cargo is stacked at Sinseondae Pier in Busan Port. [Yonhap]

South Korea's current account surplus reached $46.11 billion in August, the second-highest monthly figure on record, buoyed by strong semiconductor exports. The surplus has exceeded $40 billion for three consecutive months.

The Bank of Korea said Thursday the August current account posted a surplus of $46.11 billion, based on preliminary balance-of-payments data for August 2026. The figure surpassed the previous month's $42.08 billion — itself the second-highest on record at the time — reclaiming the No. 2 spot within a month. The all-time high remains June's $49.73 billion.

"The August current account surplus expanded from the previous month, led by the goods balance," the Bank of Korea said. "The surplus has exceeded $40 billion for three consecutive months."

By category, the goods balance came in at $46.81 billion, also the second-highest on record. Goods exports totaled $104.8 billion, topping $100 billion for the third straight month.

In terms of year-on-year growth in customs-cleared exports, IT shipments surged 162.6 percent in August, driven by computer peripheral SSD exports (up 366.8 percent), semiconductors (up 206.1 percent) and wireless communications devices (up 3.9 percent). Non-IT exports also rose 8.1 percent, led by petroleum products (up 64.9 percent), chemical products (up 14.1 percent) and steel products (up 13.4 percent).

Goods imports over the same period rose to $57.99 billion, with the pace of increase widening. Among customs-cleared imports, raw materials climbed 13.1 percent, led by coal (up 42.7 percent) and chemical products (up 22.8 percent), while capital goods jumped 42.9 percent, driven by semiconductor manufacturing equipment (up 96.5 percent) and semiconductors (up 70.6 percent). Consumer goods also increased 4.3 percent, with durable goods up 7.1 percent and non-durable goods up 5.9 percent.

The services balance posted a deficit of $1.68 billion in August, narrowing from a $1.97 billion deficit the previous month. The Bank of Korea said the improvement came despite a wider travel deficit, as the transportation and intellectual property royalties balances both improved.

The travel balance deficit more than doubled, from $340 million to $770 million, as overseas travel payments increased during the peak summer travel season. The transportation balance, by contrast, expanded nearly ninefold from $60 million to $520 million over the same period, lifted by rising export freight rates.

The primary income balance shrank from a surplus of $4.35 billion to $1.92 billion, mainly due to a contraction in the dividend income balance. The dividend income balance narrowed from $3.83 billion to $1.18 billion, reflecting seasonal effects from quarterly dividend payments on securities investments.

On the financial account, net assets increased by $40.23 billion in August, slightly below the previous month's $40.32 billion, which had been the second-highest on record.

By category, the direct investment surplus widened from $4.13 billion to $7.82 billion. Residents' overseas investment rose by $6.22 billion, while foreign investment in South Korea fell by $1.61 billion.

Portfolio investment assets grew by $16.6 billion, led by debt securities, marking the second-largest increase on record after October last year's $17.29 billion. Equity investment growth slowed from $12.33 billion to $10.15 billion, centered on general government and non-financial corporations, but debt securities surged $6.44 billion — a record high — as overseas bonds became more attractive to investors.

Foreign investment in South Korea fell by $4.85 billion. The Bank of Korea said equity investment declined as the temporary effect of SK hynix's American depositary receipt issuance faded, while debt securities also turned negative as arbitrage incentives deteriorated.

Elsewhere, financial derivatives decreased by $4.68 billion. Other investment assets fell by $5.03 billion, centered on other assets, while liabilities declined by $8.48 billion, also led by other assets. Reserve assets increased by $12.19 billion.


kimstar@heraldcorp.com