ID :
191417
Tue, 06/28/2011 - 03:33
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Shortlink :
https://oananews.org//node/191417
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S. Korea's current account surplus hits 7-month high in May
South Korea's current account surplus rose to the highest level in seven months in May due mainly to a slowdown in local firms' dividend payments to foreign investors, the central bank said Tuesday.
The current account surplus reached US$2.26 billion in May, up from a revised $1.28 billion the previous month, according to the Bank of Korea (BOK). The current account is the broadest measure of cross-border trade.
The May surplus was the largest since the $5.11 billion surplus seen in October last year. The current account remained in the black for the 15th straight month in May, powered by exports, which account for about 50 percent of the South Korean economy.
The surplus amounted to a combined $6.15 billion in the January-May period and the central bank forecast the current account surplus will reach $11 billion this year.
The surplus is widely expected to add further upward pressure on the local currency, which has gained about 4.5 percent to the U.S. dollar since January.
In May, the reduced working days caused the country's exports to decline while imports picked up due to high oil prices, the central bank said.
South Korea's goods balance posted a surplus of $1.71 billion in May, down from a revised $3.33 billion in April.
The service account, which includes outlays by South Koreans on overseas trips, posted a surplus of $15.5 million last month, a turnaround from a shortfall of $178.8 million in April.
The primary income account, which tracks wages for foreign workers and dividend payments overseas, logged a surplus of $517.3 million last month, compared with a deficit of $1.58 billion in April.
The turnaround came as offshore investors, in March and April, usually repatriate dividend payments of Korean companies that close their books in December, sapping the country's income account balance.
Meanwhile, the capital and financial account, covering cross-border investments, posted a net outflow of $4.03 billion in May, compared with a net inflow of $394.7 million the previous month, according to the BOK.
The current account surplus reached US$2.26 billion in May, up from a revised $1.28 billion the previous month, according to the Bank of Korea (BOK). The current account is the broadest measure of cross-border trade.
The May surplus was the largest since the $5.11 billion surplus seen in October last year. The current account remained in the black for the 15th straight month in May, powered by exports, which account for about 50 percent of the South Korean economy.
The surplus amounted to a combined $6.15 billion in the January-May period and the central bank forecast the current account surplus will reach $11 billion this year.
The surplus is widely expected to add further upward pressure on the local currency, which has gained about 4.5 percent to the U.S. dollar since January.
In May, the reduced working days caused the country's exports to decline while imports picked up due to high oil prices, the central bank said.
South Korea's goods balance posted a surplus of $1.71 billion in May, down from a revised $3.33 billion in April.
The service account, which includes outlays by South Koreans on overseas trips, posted a surplus of $15.5 million last month, a turnaround from a shortfall of $178.8 million in April.
The primary income account, which tracks wages for foreign workers and dividend payments overseas, logged a surplus of $517.3 million last month, compared with a deficit of $1.58 billion in April.
The turnaround came as offshore investors, in March and April, usually repatriate dividend payments of Korean companies that close their books in December, sapping the country's income account balance.
Meanwhile, the capital and financial account, covering cross-border investments, posted a net outflow of $4.03 billion in May, compared with a net inflow of $394.7 million the previous month, according to the BOK.
