South Korea current account surplus at nine-month high

SEOUL: South Korea's current account surplus hit a nine-month high in July thanks to record exports despite global economic uncertainty, the central bank said Monday.

The surplus reached $4.94 billion in July, more than double a revised $2.03 billion the previous month, the Bank of Korea said.

The July surplus in the account -- the broadest measure of international trade -- was the biggest since a $5.11 billion surplus in October last year.

The cumulative surplus was $13 billion for the first seven months of the year and the central bank revised up its full-year forecast to $15.5 billion.

The figure is expected to push up the local currency, which has risen about five percent against the dollar since January.

The central bank said the increase resulted mainly from robust overseas shipments of steel and petrochemical products.

The goods balance posted a record surplus of $5.89 billion in July, up from a revised $2.7 billion in June.

Exports grew 20.9 percent year-on-year to a record $49.7 billion in July and imports rose 22.2 percent to $43.8 billion.

Despite the economic uncertainties in the United States and Europe, South Korea's exports have remained strong because big Korean companies have increasingly targeted emerging markets.

The service account, which includes spending by South Koreans on overseas trips, saw a deficit of $690.9 million last month compared with a shortfall of $632.7 million in June.

The primary income account, which measures wages for foreign workers and dividend payments overseas, logged a surplus of $72.3 million in July compared with $239.8 million in June.

The capital and financial account, covering cross-border investments, saw a net outflow of $3.2 billion in July, similar to June's revised figure.

Copyright AFP (Agence France-Presse), 2011