(2nd LD) S. Korea logs current account surplus for 9th month in Oct.

(ATTN: RECASTS lead; UPDATES with remarks by BOK official in paras 4-6,11)
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, with the full-year surplus
likely to exceed US$40 billion, the central bank said Friday.
The current account surplus reached $4.94 billion last month, up from a revised
$4.03 billion in September and hitting a four-month high, 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 mainly because imports have fallen faster
than exports amid the global downturn.
The BOK forecast that the current account will remain in the black for November
and that the country's current account surplus will surpass $40 billion this
year, up from the previous estimate of $29 billion.
"The country will likely see a smaller surplus for November, but it is hard to
predict the size of the surplus due to factors like the rail workers strike," Lee
Young-bog, head of the BOK's balance of payments statistics team, told a press
conference.
On Thursday, South Korea's railway union went on an indefinite strike after
negotiations over working conditions and wage hikes fell through.
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 from 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, mainly on decreased spending on overseas travel.
"Although Influenza A is affecting the movement of people in and out of the
country, its impact on the service account does not appear large for now," Lee
said.
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, as
foreign buying of local stocks declined and banks' foreign currency denominated
loans increased.
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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