ID :
66215
Wed, 06/17/2009 - 18:37
Auther :
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https://oananews.org//node/66215
The shortlink copeid
Korea's current account deficit with Mideast hits record high in 2008
By Kim Soo-yeon
SEOUL, June 17 (Yonhap) -- South Korea posted a record current account deficit
with the Middle East in 2008 as soaring oil prices raised import bills despite
brisk exports to the region, the central bank said Wednesday.
South Korea's current account shortfall with the region reached US$67.5 billion
last year, compared with a $45 billion deficit the previous year, the Bank of
Korea (BOK) said in a report. It marked the largest deficit since 1998 when the
BOK began to compile related data. The current account is the broadest measure of
cross-border trade.
"Despite robust exports of machinery and steel products to the Middle East, a
sharp gain in oil prices last year jacked up South Korea's import bills," an
official at the BOK said.
Last year oil prices sharply rose, peaking at $147 per barrel in July. South
Korea, the world's fifth-largest crude buyer, relies entirely on imports for its
oil needs.
The country's goods balance with the region posted the largest shortfall of $66.9
billion last year, compared with a $44.8 billion deficit the previous year, it
added.
Meanwhile, the country's capital account, which tracks cross-border investments,
posted a net outflow of $40.3 billion in 2008, compared with a net outflow of
$36.8 billion in 2007, due to a selling spree of local stocks and bonds by
foreign investors, according to the BOK.
In the aftermath of the collapse of Lehman Brothers last September, offshore
investors scurried to sell riskier assets to secure much-needed liquidity,
rattling the Seoul financial markets.
The capital account with the European Union (EU) swung to a deficit of $9.39
billion in 2008, a turnaround from a $40.6 billion surplus the previous year.
The securities investment account including stock and bond investments posted a
sizable net outflow of $11.6 billion with the United States and $6.17 billion
with the EU.
South Korea's stock prices tumbled nearly 29 percent last year alone and the
Korean won declined 25.7 percent against the U.S. dollar in 2008.
In 2008, South Korea posted its first annual current account shortfall in 11
years of $6.41 billion.
sooyeon@yna.co.kr
(END)
SEOUL, June 17 (Yonhap) -- South Korea posted a record current account deficit
with the Middle East in 2008 as soaring oil prices raised import bills despite
brisk exports to the region, the central bank said Wednesday.
South Korea's current account shortfall with the region reached US$67.5 billion
last year, compared with a $45 billion deficit the previous year, the Bank of
Korea (BOK) said in a report. It marked the largest deficit since 1998 when the
BOK began to compile related data. The current account is the broadest measure of
cross-border trade.
"Despite robust exports of machinery and steel products to the Middle East, a
sharp gain in oil prices last year jacked up South Korea's import bills," an
official at the BOK said.
Last year oil prices sharply rose, peaking at $147 per barrel in July. South
Korea, the world's fifth-largest crude buyer, relies entirely on imports for its
oil needs.
The country's goods balance with the region posted the largest shortfall of $66.9
billion last year, compared with a $44.8 billion deficit the previous year, it
added.
Meanwhile, the country's capital account, which tracks cross-border investments,
posted a net outflow of $40.3 billion in 2008, compared with a net outflow of
$36.8 billion in 2007, due to a selling spree of local stocks and bonds by
foreign investors, according to the BOK.
In the aftermath of the collapse of Lehman Brothers last September, offshore
investors scurried to sell riskier assets to secure much-needed liquidity,
rattling the Seoul financial markets.
The capital account with the European Union (EU) swung to a deficit of $9.39
billion in 2008, a turnaround from a $40.6 billion surplus the previous year.
The securities investment account including stock and bond investments posted a
sizable net outflow of $11.6 billion with the United States and $6.17 billion
with the EU.
South Korea's stock prices tumbled nearly 29 percent last year alone and the
Korean won declined 25.7 percent against the U.S. dollar in 2008.
In 2008, South Korea posted its first annual current account shortfall in 11
years of $6.41 billion.
sooyeon@yna.co.kr
(END)
