Korea posts record current account surplus

Korea’s current account surplus set an all-time high last month, hitting nearly $5 billion.

According to the “October trends of international account balance,” released by the Bank of Korea on Thursday, Korea recorded $4.91 billion in current account surplus.

The figure is the highest ever monthly record since 1980, when the country began tallying the data.
The trade account turned to the black due to a significant drop in import resulting from a plunge in prices of raw materials, including crude oil, while the service account narrowed deficits due to declining overseas travel by nationals due to a hike in forex rates.
The current account recorded $1.82 billion in surplus in June. But the balance turned to -$2.53 billion in July, -$4.7 billion in August, and -$1.35 billion in September, as the figure recorded deficits for three consecutive months. Cumulative current account deficits during this year’s January through October period came in at $9.01 billion.
The trade account turned from -$890 million in September to $2.79 billion in October. Both import and export growth slowed due to the aftereffects of the global economic slump, but Korea managed to post a trade surplus due to a plunge in import value stemming from falling prices of raw materials, including crude oil, the central bank said.

The service account deficit significantly narrowed from -$1.24 billion to -$50 million thanks to a surplus in travel account.
The travel account turned to the black thanks to the weakening won and the falling trend of Korean nationals’ overseas travel, as the country posted a surplus in the travel account for the first time since April 2001. In comparison, the net capital outflow widened from $4.78 billion in September to $25.53 billion in October.