S. Korea Posts Record Current Account Surplus on Chip Exports

South Korea recorded its largest-ever current account surplus in February, led by a surge in semiconductor exports that bolstered the goods balance. The positive trade swing may boost near-term external balances and corporate cash flows in the tech sector. However, the Iran war is starting to pressure energy markets and global shipping, posing upside risks to energy import costs and potential downside to future trade flows.

Analysis

South Korea recorded its largest-ever current account surplus in February, led by a surge in semiconductor exports that bolstered the goods balance. The positive trade swing may boost near-term external balances and corporate cash flows in the tech sector. However, the Iran war is starting to pressure energy markets and global shipping, posing upside risks to energy import costs and potential downside to future trade flows.