S. Korea's current account surplus hits 7-month low in Aug.

By Kim Soo-yeon
SEOUL, Sept. 29 (Yonhap) -- South Korea's current account surplus hit a seven-month low in August as export growth slowed down amid global economic uncertainty, the central bank said Thursday.
The current account surplus reached US$401.3 million in August, down from a revised $3.77 billion the previous month, according to the Bank of Korea (BOK). The current account is the broadest measure of cross-border trade.
The August reading was the smallest since a $154.7 million surplus tallied in January, but the current account remained in the black for the 18th straight month on exports, which account for about 50 percent of the South Korean economy.
The cumulative surplus amounted to $12.3 billion in the first eight months of the year and the central bank revised up its 2011 forecast of the surplus to $15.5 billion.
The BOK said the surplus of the goods balance narrowed mainly because companies accelerated exports in July ahead of the summer vacation season.
Experts said the August surplus gave some solace to the market as a sharp fall in the country's trade surplus spawned concerns that the current account may slide into the red.
BOK Gov. Kim Choong-soo told lawmakers Tuesday that the underlying trend of the current account surplus is likely to continue for September, dismissing speculation that the eurozone debt crisis has begun to hit the Korean economy.
The dimmer global economic outlook and the eurozone debt crisis are increasing economic uncertainty, raising fears that Korea's exports may be hurt.
South Korea's goods balance posted a surplus of $480.2 million in August, down from $4.73 billion in July, the BOK said.
Exports fell 5.69 percent on-month to $45.8 billion in August while imports grew 3.4 percent to $45.3 billion.
The service account, which includes outlays by South Koreans on overseas trips, posted a deficit of $577.9 million last month, compared with a shortfall of $690.9 million in July.
The primary income account, which tracks wages for foreign workers and dividend payments overseas, logged a surplus of $699.6 million in August, up from $72.3 million in July.
Meanwhile, the capital and financial account, covering cross-border investments, posted a net outflow of $2.37 billion in August, compared with a net outflow of a revised $2.48 billion in July, according to the BOK.
sooyeon@yna.co.kr
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