Economy
Korea’s chip boom drives current-account surplus past Germany and Japan combined
South Korea recorded a $116.6 billion current-account surplus in the second quarter, exceeding Germany and Japan’s combined total, as semiconductor exports and overseas investment income surged. Chip exports rose sharply alongside demand linked to AI servers and data centers. Economists cautioned that the gains could weaken if AI investment slows or rival suppliers add capacity, and urged diversification beyond semiconductors. IMF projections also point to a substantial decline in Korea’s surplus after 2028.
Editorial summary · Publisher article
What matters
- Korea’s second-quarter surplus rose 310% from a year earlier, according to the report.
- Semiconductor exports reached $113.89 billion in the second quarter and $148.02 billion in the third.
- The IMF expects the surplus to remain above $400 billion in 2027 and 2028 before falling later.
- An economist called for restructuring industries such as petrochemicals and steel toward higher-value products.
Dependence on AI demand
The report presents the surplus as vulnerable to a slowdown in global AI investment, tighter regulation or increased chip supply from competing exporters.
Context & caveats
- The projections are forecasts, and the report says the current gains may partly reflect unusually strong semiconductor prices and demand.
Why this made the edition
The report supplies detailed current-account and export figures, compares Korea with Germany and Japan, and includes explicit warnings about concentration in semiconductors and possible AI-demand risks.
Source material