With annual exports surpassing $700 billion for the first time last year, the annual current account surplus hit a record $123 billion (approximately 176 trillion won). The scale of residents’ overseas securities investment, including individual investors and the National Pension Service, also exceeded $100 billion for the first time.

According to the Bank of Korea’s provisional “Balance of Payments for December 2025” released on the 6th, the current account posted an $18.7 billion surplus in December last year, marking 32 consecutive months in the black since May 2023. As the surplus grew by $5.8 billion from the previous month, it surpassed the previous record monthly surplus set in September last year ($14.22 billion).

Buoyed by December’s surplus, the cumulative current account for last year also recorded a large surplus. The annual current account came to a surplus of $123.05 billion, surpassing the previous annual record set in 2015 ($105.12 billion) and setting a new high after 10 years.

The main driver was exports rising much more than imports. Thanks to stronger exports, the goods balance in December posted a record surplus of $18.85 billion, leading the overall current account surplus. Exports in December totaled $71.65 billion, up 13.1% from a year earlier, the largest on record.

Semiconductors led exports. IT items saw robust shipments centered on semiconductors and information and communications equipment, while non-IT items such as machinery also increased, resulting in export growth for the second consecutive month. By item, export growth was strong for IT (32.4%), semiconductors (43.1%), and computer peripherals (33.1%).

Despite lower energy prices, imports increased for the second straight month to $52.8 billion as consumer goodsespecially passenger cars and goldrose sharply. Consumer-goods imports grew 17.9%, with gold imports surging by 461.9%.

On an annual basis as well, the goods surplus reached a record $138.07 billion, and exports totaled $718.94 billion, topping $700 billion for the first time.

In December, the services account recorded a $3.69 billion deficit, as the travel balance posted a $1.4 billion deficit on demand for overseas travel during the winter break. The primary income account logged a $4.73 billion surplus, the third largest on record on a monthly basis, driven by dividend income.

Although last year’s current account surplus was the largest ever, substantial funds also flowed out through residents’ overseas securities investment. The cumulative amount of overseas securities investment by domestic investors last year was $140.28 billion, the largest on record. It was the first time the annual amount exceeded $100 billion. In December, overseas securities investment by domestic investors increased by $14.37 billion, led by equities.

Kim Young-hwan, Director-General of Economic Statistics Department 1 at the Bank of Korea, said, “Residents’ overseas stock investment during the year also totaled a record $114.3 billion, an amount comparable to the current account surplus,” adding, “By investor type, asset managers, insurers, and securities firms invested $42.1 billion, public institutions such as the National Pension Service invested $40.7 billion, and individuals invested $31.4 billion. Taking into account individuals’ investments in exchange-traded funds (ETFs), it appears that the scale of individuals’ direct and indirect overseas stock investment exceeded that of public institutions such as the National Pension Service.”

On the exchange rate impact, he said, “The surge in residents’ overseas securities investment appears to have largely offset, in terms of foreign exchange supply and demand, the effects of the current account surplus stemming from economic fundamentals.”