In 2024, South Korea recorded a significant current account surplus with the United States, exceeding $100 billion for the fourth consecutive year. According to provisional data from the Bank of Korea, the surplus reached $118.23 billion—a 34.7% increase from the previous year’s $87.76 billion—marking the highest level since such regional data began in 1998. This continued growth reflects strong economic ties and increasing trade volumes between the two nations.
Strong U.S. Trade Boosts Surplus, While China Deficit Signals Ongoing Structural Challenges
The record-breaking surplus was largely driven by a trade balance surplus of $108.99 billion with the U.S., bolstered by exports of semiconductors and computers. Additionally, income from dividends showed notable improvement, rising to $18.4 billion, up over $4 billion from the previous year. Despite these gains, the service account continued to show weakness, recording a deficit of $7.18 billion due to underperformance in areas such as tourism and business services.
South Korea’s U.S. Surplus Hits Record $118 Billion as China Trade Deficit PersistsIn stark contrast, South Korea’s current account with China remained in deficit for the third straight year, amounting to $29.04 billion. This is slightly improved from 2023’s $29.25 billion, but still the second-largest deficit recorded. The trade balance deficit narrowed slightly due to increased semiconductor exports and a decline in chemical product imports, decreasing from $33.13 billion to $32.53 billion. Nevertheless, the ongoing deficit indicates structural trade challenges with China.
Mixed Trade Outcomes with Key Regions Amid Rising Global Investment by South Korea
South Korea also recorded a current account deficit of $12.72 billion with Japan, an improvement of over $3 billion from the previous year. On the other hand, trade with the European Union and Southeast Asia resulted in surpluses of $17.09 billion and $56.52 billion, respectively. These surpluses were primarily attributed to strong exports of high-value products such as ships, semiconductors, and solid-state drives (SSDs).
In terms of financial accounts, foreign direct investment by South Korean residents increased across most regions, with the U.S. seeing the largest inflow of $24.71 billion—its fourth-largest ever. Investment also grew in the EU and Southeast Asia but declined in China by $3.69 billion.
Additionally, foreign portfolio investments surged to $72.25 billion, significantly up from $45.42 billion the previous year. This growth included marked increases in both foreign stock and bond investments, signaling a more outward-looking investment strategy by South Korean investors.
