S. Korea logs record current account surplus of US$6.65 bln in March

By Kim Soo-yeon
SEOUL, April 29 (Yonhap) -- South Korea posted a record current account surplus
in March as imports declined more sharply than exports, leading to the largest
ever surplus in the country's goods balance, the central bank said Wednesday.

The current account surplus reached US$6.65 billion in March, sharply up from a
revised $3.56 billion surplus the previous month, the Bank of Korea (BOK) said in
a report. The March figure marked the largest surplus since January 1980 when the
BOK began to compile related data.
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 before it swung to the red in January.
The record surplus for March was already forecast by the central bank last month,
citing a sizable trade surplus and less-than-expected dividend payouts by local
firms to foreign investors.
The report comes as the Korean currency market has stabilized since March, helped
by the country's improving trade balance and overseas borrowing by local banks,
prompting more dollars to flow into the export-driven economy. The won rose
almost 11 percent to the greenback in March alone.
The goods balance posted a surplus of $6.98 billion in March, compared with a
revised $3.11 billion surplus the previous month. The country logged a record
goods balance surplus last month as imports declined more sharply than exports.
Overseas shipments declined 17.8 percent on-year to $30.4 billion last month and
imports plunged 35.8 percent to $23.4 billion.
The shortfall in the service account, which includes South Korean spending on
overseas trips, widened to $645.7 million in March, compared with a revised $529
million a month earlier.
The income account, which tracks wages for foreign workers and dividend payments
overseas, logged a deficit of $215.7 million last month, a turnaround from a
revised $484.6 million surplus a month earlier, due to dividend payouts by local
companies to foreign investors.
The capital account, which tracks cross-border investments, posted a net outflow
of $2.18 billion last month, compared with a net outflow of a revised $2.98
billion a month earlier.
The central bank said in early April that Korea is forecast to post a current
account surplus of around $18 billion this year, down from a previous estimate of
$22 billion. The government predicted that the surplus will likely reach around
$16 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
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