South Korea's current account surplus broke $60 billion for the first time in September, and semiconductor exports became the main engine

The Zhitong Finance App learned that South Korea's current account surplus jumped to a record high in September, driven by booming semiconductor exports. Global investment in artificial intelligence continues to drive demand for Korean technology products. According to data released by the Bank of Korea on Thursday, the current account surplus in September widened from 46.1 billion US dollars in August to 61.5 billion US dollars. According to the Bank of Korea, this figure exceeds the previous record of 49.7 billion US dollars set in June, and is also the first time that the monthly current account surplus has exceeded 60 billion US dollars.

This record highlights the growing dependence of the Korean economy on the global AI boom: soaring demand for advanced memory chips is driving exports and driving economic growth. Strong export performance provided a buffer for weakness in other sectors of the economy, although the market still has questions about how long the unprecedented rate of AI spending will continue.

After the Democratic Party swept through the US midterm elections, these doubts were further heated. The Democratic Party's victory raised the possibility of more strict scrutiny of data center projects and could slow down the pace of AI construction.

According to the data, South Korea's merchandise trade surplus also reached a record high of 62.8 billion US dollars in September, surpassing the previous peak of 47.9 billion US dollars in June. Exports increased 92.4% year over year to US$13.7 billion, exceeding US$100 billion for the fourth consecutive month. Among them, exports of information technology products surged by about 196%, and exports of non-IT products increased by 13.4%. Imports increased by 29.4%.

Financial accounts show an increase of $54.3 billion in net assets. South Koreans' foreign direct investment increased by 11.4 billion US dollars, and securities holdings increased by 16.6 billion US dollars. Meanwhile, net sales of Korean stocks by foreign investors amounted to 13.7 billion US dollars, mainly involving large semiconductor stocks; South Korean investors' purchases of overseas bonds reached a record high.

The Bank of Korea suspended the austerity cycle in October after raising interest rates twice in a row. Policymakers are weighing stronger than expected economic growth with continued inflationary pressure. The Bank of Korea has hinted that the economic growth rate may be significantly faster than previously anticipated, leaving a possibility for further policy tightening. The Bank of Korea's next interest rate decision meeting is scheduled to be held on November 26.