South Korea's current account surplus narrowed sharply in October due to fewer working days from the Chuseok holiday, central bank data showed. Exports fell amid the extended break, but the cumulative surplus for the first 10 months hit a record high.
The Bank of Korea (BOK) reported a current account surplus of $6.81 billion for October, down sharply from $13.47 billion in September. This marked the 30th consecutive month of surplus since May 2023, the second-longest streak on record.
The cumulative surplus for the first 10 months of 2025 reached a record $89.58 billion, up from $76.63 billion in the same period last year. The goods account showed a $7.82 billion surplus, narrowed from $14.24 billion in September, as exports fell 4.7 percent year-on-year to $55.88 billion due to fewer working days during the extended Chuseok holiday from October 3 to 9. Imports declined 5 percent to $48.06 billion. Chuseok, the Korean harvest festival, fell between National Foundation Day on October 3 and Hangeul Day on October 9.
The services account recorded a $3.75 billion deficit, mainly from surging overseas travel demand. The primary income account, including foreign worker wages and overseas dividends and interest, posted a $2.94 billion surplus driven by higher equity income. The secondary income account showed a $190 million deficit.
In the financial account, net assets rose by $6.81 billion. Direct investment saw a net increase of $1.73 billion, with Korean residents' overseas direct investment at $1.88 billion and foreign direct investment into Korea at $150 million. Portfolio investment netted a $12.08 billion increase, as local residents' overseas investments jumped $17.27 billion, led by equities, while foreign investment in Korean stocks rose $5.2 billion.
Song Jae-chang, director of the BOK's financial statistics department, said at a briefing, "From November, the holiday effect faded and a substantial trade surplus was reported, led by strong semiconductor exports. The current account surplus is likely to rebound to well above $10 billion." The central bank projects an annual surplus of $115 billion this year.
