South Korea’s current account surplus in September exceeded 60 billions USD for the first time, with semiconductor exports becoming the main driver

According to the Zhihu Finance APP, driven by strong growth in semiconductor exports, South Korea's current account surplus soared to a record high in September. Global artificial intelligence investment continues to boost demand for South Korean tech products. Data released by the Bank of Korea on Thursday showed the current account surplus widened to $61.5 billion in September from $46.1 billion in August. The Bank of Korea stated that this figure surpasses the previous record of $49.7 billion set in June and also marks the first time the monthly surplus has exceeded $60 billion.

This record highlights South Korea's increasing reliance on the global AI boom: surging demand for advanced memory chips is driving exports and spurring economic growth. The robust export performance has cushioned weaknesses in other sectors of the economy, although there are still doubts about how long the unprecedented pace of AI spending can continue.

These concerns have intensified following the Democratic Party’s sweep of the US midterm elections. The Democratic victory raises the likelihood of stricter scrutiny on data center projects and could slow the pace of AI expansion.

Data shows South Korea’s goods trade surplus in September also reached a record $62.8 billion, topping the previous June peak of $47.9 billion. Exports jumped 92.4% year-on-year to $130.7 billion, exceeding $100 billion for the fourth consecutive month. Among them, exports of information technology products surged roughly 196%, while non-IT exports grew 13.4%. Imports increased by 29.4%.

The financial account showed a net asset increase of $54.3 billion. Overseas direct investment by Koreans rose by $11.4 billion, and securities holdings increased by $16.6 billion. Meanwhile, foreign investors were net sellers of $13.7 billion in Korean stocks, mainly involving large semiconductor shares; purchases of overseas bonds by Korean investors hit a record high.

After two consecutive rate hikes, the Bank of Korea paused its tightening cycle in October, as decision-makers weigh stronger-than-expected economic growth against persistent inflationary pressures. The Bank of Korea has indicated that the economic expansion may be significantly faster than previously expected, leaving room for further policy tightening. The central bank’s next interest rate decision meeting is scheduled for November 26.