S. Korea logs current account surplus for 9th month in Oct.

By Kim Soo-yeon
SEOUL, Nov. 27 (Yonhap) -- South Korea posted a current account surplus for the
ninth straight month in October on brisk exports and decreased spending on
overseas travel, the central bank said Friday.

The current account surplus reached US$4.94 billion last month, up from a revised
$4.03 billion in September, the Bank of Korea (BOK) said in a report. In the
first 10 months of this year, the accumulative surplus amounted to $37 billion.
The country's current account, the broadest measure of cross-border trade, has
remained in the black since February as imports have fallen faster than exports
amid the global downturn.
The surplus is widely forecast to lend further support to the Korean won which
has gained about 36 percent since hitting an 11-year low in early March on the
back of improving exports and capital inflows by foreign investors.
The goods balance posted a surplus of $5.72 billion in October, compared with a
$5.28 billion surplus for the previous month. The country logged a record goods
balance surplus of $6.98 billion in March.
Overseas shipments declined 5.5 percent on-year to $35.9 billion last month and
imports fell 14.7 percent to $30.2 billion.
A shortfall in the service account, which includes outlays by South Koreans on
overseas trips, narrowed to $1.13 billion in October, compared with $1.63 billion
a month earlier.
The income account, which tracks wages for foreign workers and dividend payments
overseas, logged a surplus of $541.2 million last month, down from $548.1 million
in September.
The capital account, covering cross-border investments, posted a net inflow of
$1.54 billion in October, sharply down from $7.2 billion the previous month.
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.
On Nov. 12, BOK Gov. Lee Seong-tae said that South Korea may see the current
account surplus reach up to $40 billion this year although it will likely sharply
decline next year on rising imports.
Last year, South Korea registered its first annual current account shortfall in
11 years of $6.41 billion as a sharp gain in oil prices raised import bills.
sooyeon@yna.co.kr
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