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(2nd LD) S. Korea logs current account surplus for 9th month in Oct.
By Kim Soo-yeon
SEOUL, Nov. 27 (Yonhap) -- South Korea posted a current account surplus for the ninth straight month in October on brisk exports, with the full-year surplus likely to exceed US$40 billion, the central bank said Friday.
The current account surplus reached $4.94 billion last month, up from a revised $4.03 billion in September and hitting a four-month high, the Bank of Korea (BOK) said in a report. In the first 10 months of this year, the accumulative surplus amounted to $37 billion.
The country's current account, the broadest measure of cross-border trade, has remained in the black since February mainly because imports have fallen faster than exports amid the global downturn.
The BOK forecast that the current account will remain in the black for November and that the country's current account surplus will surpass $40 billion this year, up from the previous estimate of $29 billion.
"The country will likely see a smaller surplus for November, but it is hard to predict the size of the surplus due to factors like the rail workers strike," Lee Young-bog, head of the BOK's balance of payments statistics team, told a press conference.
On Thursday, South Korea's railway union went on an indefinite strike after negotiations over working conditions and wage hikes fell through.
The surplus is widely forecast to lend further support to the Korean won, which has gained about 36 percent since hitting an 11-year low in early March on the back of improving exports and capital inflows from foreign investors.
The goods balance posted a surplus of $5.72 billion in October, compared with a $5.28 billion surplus for the previous month. The country logged a record goods balance surplus of $6.98 billion in March.
Overseas shipments declined 5.5 percent on-year to $35.9 billion last month and imports fell 14.7 percent to $30.2 billion.
A shortfall in the service account, which includes outlays by South Koreans on overseas trips, narrowed to $1.13 billion in October, compared with $1.63 billion a month earlier, mainly on decreased spending on overseas travel.
"Although Influenza A is affecting the movement of people in and out of the country, its impact on the service account does not appear large for now," Lee said.
The capital account, covering cross-border investments, posted a net inflow of $1.54 billion in October, sharply down from $7.2 billion the previous month, as foreign buying of local stocks declined and banks' foreign currency denominated loans increased.
On Nov. 12, BOK Gov. Lee Seong-tae said that South Korea may see the current account surplus reach up to $40 billion this year although it will likely sharply decline next year on rising imports.
Last year, South Korea registered its first annual current account shortfall in 11 years of $6.41 billion as a sharp gain in oil prices raised import bills.
sooyeon@yna.co.kr
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