S. Korea logs current account surplus for 3rd month in April

By Kim Soo-yeon
SEOUL, May 28 (Yonhap) -- South Korea posted a current account surplus for the
third straight month in April, but the surplus narrowed mainly on increased
spending on overseas travel, the central bank said Thursday.

The current account surplus reached US$4.28 billion in April, down from a record
$6.65 billion in March, the Bank of Korea (BOK) said in a report. The current
account is the broadest measure of cross-border trade.
The current account has been in the black since February as the trade balance is
improving due to a sharp decline in imports. The data is likely to give further
support to the Korean currency, which has gained 24 percent against the U.S.
dollar since March 2 when the won dipped to an 11-year low.
The goods balance posted a surplus of $6.17 billion in April, compared with a
$6.98 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 22.6 percent on-year to $30.3 billion last month and
imports plunged 35.7 percent to $24.1 billion.
The shortfall in the service account, which includes South Korean spending on
overseas trips, widened to $1.11 billion in April, compared with $645.7 million a
month earlier, as the strengthening Korean won prompted more people to travel
overseas.
The income account, which tracks wages for foreign workers and dividend payments
overseas, logged a deficit of $856 million last month, up from a $215.7 million
deficit a month earlier.
The capital account, which tracks cross-border investments, posted a net inflow
of $2.54 billion last month, compared with a net outflow of a revised $2.71
billion a month earlier.
The central bank said in early April that Korea is forecast to post a current
account surplus of around $18 billion this year, down from a previous estimate of
$22 billion. The government predicted that the surplus will likely reach around
$16 billion.
Last year, the country posted its first annual current account shortfall in 11
years of $6.41 billion as soaring oil prices raised import bills.
sooyeon@yna.co.kr
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