S. Korea`s current account surplus hits 4-month high in Feb.

By Kim Soo-yeon
SEOUL, March 30 (Yonhap) -- South Korea posted the biggest current-account
surplus in four months in February as the goods balance improved due to a sharp
fall in imports, the central bank said Monday.
The current account surplus reached US$3.68 billion in February, a turnaround
from a revised $1.64 billion deficit the previous month, the Bank of Korea (BOK)
said in a report. The February figure marked the largest surplus since October
2008 when the current account surplus reached a record $4.75 billion.
South Korea's current account, which measures trade, service and investment flows
between the country and the rest of the world, had been in the black between
October and December.
The report comes as the Korean currency has gained more than 16 percent to the
U.S. dollar since dipping to an 11-year low on March 2.
The local foreign exchange market had been gripped by fears over cash flight by
Japanese investors in March and local banks' dollar shortage woes. But the won
has gained strength to the greenback sharply as the country's trade balance
improves due to falls in imports and foreign investors have been buying Seoul
stocks, prompting more dollars to flow into the export-driven country.
The goods balance posted a surplus of $3.15 billion in February, compared with a
revised $1.74 billion deficit the previous month as imports fell more sharply
than exports. The February readings marked the largest surplus since June 2008.
Overseas shipments declined 19.2 percent on-year to $25.3 billion last month and
imports plunged 30.6 percent to $22.2 billion.
The shortfall of the service account, which includes South Korean spending on
overseas trips, narrowed to $495 million in February, compared with a revised
$708.6 million a month earlier.
The income account, which tracks wages for foreign workers and dividend payments
overseas, logged a surplus of $524.3 million last month, down from $564 million
from a month earlier.
The capital account, which tracks cross-border investments, posted a net outflow
of $3.32 billion in February, compared with a net inflow of a revised $5.14
billion a month earlier.
The central bank predicted in December the country's current account for this
year will remain in the black at around $22 billion. The government has forecast
the surplus will reach around $13 billion.
Last year, the country posted its first annual current account shortfall in 11
years of $6.41 billion as soaring oil prices raised import bills.
sooyeon@yna.co.kr
(END)