S. Korea's current account surplus hits 3-month high

By Kim Soo-yeon
SEOUL, July 29 (Yonhap) -- South Korea's current account surplus reached the
highest level in three months in June as steel and electronics exports picked up,
the central bank said Wednesday.

The surplus widened to US$5.43 billion last month, up from a revised $3.5 billion
in May and the second-largest monthly surplus, the Bank of Korea (BOK) said in a
report. The cumulative current account surplus was $21.75 billion for the first
half.
The country's current account, the broadest measure of cross-border trade, has
remained in the black since February as imports have shrunk faster than exports
amid the worldwide downturn. The June figures marked the largest surplus since
March when it reached a record $6.65 billion.
The surplus is widely expected to further strengthen the Korean won, which has
gained 27 percent against the U.S. dollar since early March.
The goods balance posted a surplus of $6.61 billion in June, compared with a
$4.88 billion surplus the previous month. The country logged a record goods
balance surplus in March as imports declined more sharply than exports.
Overseas shipments declined 22.5 percent on-year to $31.6 billion last month and
imports tumbled 33 percent to $25 billion.
The shortfall in the service account, which includes South Korean spending on
overseas trips, narrowed to $1.45 billion last month, compared with $1.47 billion
a month earlier.
The income account, which tracks wages for foreign workers and dividend payments
overseas, logged a surplus of $678 million last month, up from a $358.3 million
surplus a month earlier.
The capital account, which tracks cross-border investments, posted a net outflow
of $404 million last month, compared with a net inflow of $7.02 billion a month
earlier.
The bank revised up its forecast of the country's current account surplus this
year in early July. It said Korea is forecast to post a current account surplus
of around $29 billion in 2009, up from its previous estimate of $18 billion. The
government predicted that the surplus will likely reach around $25 billion.
Last year, South Korea registered 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)