South Korea Records Second-Largest Global Current Account Surplus

South Korea recorded a current account surplus of 116.63 billion USD in the second quarter of 2026, the second-largest among major economies behind China's 193.72 billion USD. This figure is more than four times the 28.39 billion USD recorded in the same quarter the previous year and marks the first time since 1996 that South Korea's quarterly surplus exceeded the combined totals of Germany (52.28 billion USD) and Japan (50.62 billion USD).

Lee Jae Myung, President of South Korea, declared the nation a leading player in the global economy, attributing the success to the global demand for semiconductors during the artificial intelligence boom. Semiconductor exports surged 181.6 percent year-on-year to 113.89 billion USD. While the International Monetary Fund projects a total 2026 surplus of approximately 421.94 billion USD, the Bank of Korea suggested the final figure may exceed its previous 450 billion USD forecast.

Despite the trade success, government data showed a decline in domestic labor stability, with temporary and daily workers falling to 5.73 million in the third quarter—the lowest level since 1995—due to a slump in the construction sector. The International Monetary Fund expects the surplus to remain above 400 billion USD through 2028 before declining in 2029 as the semiconductor boom peaks and competition from China intensifies.