South Korea's Q2 Current-Account Surplus Topped Germany and Japan Combined for the First Time

Germany plus Japan still falls $13.7 billion short

The current account is what a country earns abroad from goods, services and income minus what it pays out. E Today, citing IMF data in the Bank of Korea's statistics system, ranks the second quarter as China $193.72 billion, Korea $116.63 billion, Germany $52.28 billion and Japan $50.62 billion.

Germany and Japan combined reach $102.89 billion, $13.74 billion below Korea. The gap with Germany is the widest since 1976 and the gap with Japan the widest since 1996.

4.1 times a year earlier, and it held in July and August

Korea's Q2 surplus is 4.1 times the $28.39 billion of a year earlier. Germany's grew 11.9% and Japan's 5.0% over the same period.

In July and August Korea's surplus of $88.19 billion again beat Germany and Japan combined, $80.82 billion, by $7.37 billion.

Chips did the heavy lifting

The driver is semiconductor exports. Per the Korea Data Agency, they reached $113.89 billion in the second quarter, up 181.6%, and $148.02 billion in the third quarter, up 218.7%. Analysts credit higher memory demand and prices as AI investment expands.

The IMF sees $421.9 billion this year

In its October World Economic Outlook the IMF projects a 2026 surplus of $421.946 billion for Korea, second among 190 economies behind China. The $298.892 billion increase is the largest in the world, and 18.8% of GDP would be the highest since 1980.

The surplus is expected to stay above $400 billion through 2028, then fall to $295.656 billion in 2029 and $177.491 billion in 2031.

A surplus that leans on one product

Observers note it remains to be seen how long a surplus concentrated in semiconductors can last. A slowdown in global AI investment, or more memory output from the US and China, could blunt export growth. The government is pushing new-industry investment and services to broaden the domestic base.