ID :
47991
Fri, 02/27/2009 - 19:24
Auther :
Shortlink :
https://www.oananews.org//node/47991
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S. Korea's current account swings to deficit in Jan.
SEOUL, Feb. 27 (Yonhap) -- South Korea's current account swung to a deficit in four months in January as the global economic slump dealt a heavy blow to exports, the mainstay of the local economy, the central bank said Friday.
The current account shortfall reached US$1.36 billion in January, a turnaround
from a $860.8 million surplus the previous month, the Bank of Korea (BOK) said in
a report. The country's current account remained in the black for the third
consecutive month in December.
The current account is the broadest measure of trade, service and investment
flows into and out of the country.
The report comes one day after the South Korean currency hit a near 11-year low
against the U.S. dollar with its value dipping 17 percent so far this year. The
current account shortfall puts downward pressure on the local currency.
The local foreign exchange market has been gripped by fears that Japanese
financial firms may pull their money out of the Seoul market en masse in March,
leaving local banks unable to pay back debts amid a dollar shortage.
The goods balance posted a deficit of $1.46 billion in January compared with a
$1.5 billion surplus the previous month, as exports tumbled hit by a global
recession and January had shorter working days due to the Lunar New Year holiday.
The goods balance logged the largest shortfall in five months.
Customs-cleared exports plunged 33.8 percent on-year to $21.4 billion last month
and imports declined 31.9 percent to $24.7 billion.
The shortfall of the service account, which includes South Korean spending on
overseas trips, narrowed to $708.5 million in January, compared with $1.52
billion a month earlier.
The income account, which tracks wages for foreign workers and dividend payments
overseas, logged a surplus of $564 million last month, down from $576 million
from a month earlier.
The capital account, which tracks cross-border investments, posted a net inflow
of $4.86 billion in January, compared with a net outflow of $4.83 billion a month
earlier.
The central bank predicted the country's current account for this year will
remain in the black at around $22 billion. Last year, the country posted its
first annual current account shortfall of $6.41 billion in 11 years as soaring
oil prices raised import bills.
sooyeon@yna.co.kr
(END)
The current account shortfall reached US$1.36 billion in January, a turnaround
from a $860.8 million surplus the previous month, the Bank of Korea (BOK) said in
a report. The country's current account remained in the black for the third
consecutive month in December.
The current account is the broadest measure of trade, service and investment
flows into and out of the country.
The report comes one day after the South Korean currency hit a near 11-year low
against the U.S. dollar with its value dipping 17 percent so far this year. The
current account shortfall puts downward pressure on the local currency.
The local foreign exchange market has been gripped by fears that Japanese
financial firms may pull their money out of the Seoul market en masse in March,
leaving local banks unable to pay back debts amid a dollar shortage.
The goods balance posted a deficit of $1.46 billion in January compared with a
$1.5 billion surplus the previous month, as exports tumbled hit by a global
recession and January had shorter working days due to the Lunar New Year holiday.
The goods balance logged the largest shortfall in five months.
Customs-cleared exports plunged 33.8 percent on-year to $21.4 billion last month
and imports declined 31.9 percent to $24.7 billion.
The shortfall of the service account, which includes South Korean spending on
overseas trips, narrowed to $708.5 million in January, compared with $1.52
billion a month earlier.
The income account, which tracks wages for foreign workers and dividend payments
overseas, logged a surplus of $564 million last month, down from $576 million
from a month earlier.
The capital account, which tracks cross-border investments, posted a net inflow
of $4.86 billion in January, compared with a net outflow of $4.83 billion a month
earlier.
The central bank predicted the country's current account for this year will
remain in the black at around $22 billion. Last year, the country posted its
first annual current account shortfall of $6.41 billion in 11 years as soaring
oil prices raised import bills.
sooyeon@yna.co.kr
(END)
