Volatility in current account to continue through April: Vice finance minister

First Vice Finance Minister Bang Ki-sun speaks during a meeting with other economy-related vice ministers held in Seoul on Friday. [MINISTRY OF ECONOMY AND FINANCE]

Korea is expected to continue experiencing volatility in its current account through this month, the vice finance minister said Friday, with the government set to roll out various measures to revitalize the tourism industry and boost domestic consumption.

The remark came shortly after the Bank of Korea announced the country's current account shortfall came to $520 million in February, following a record deficit of $4.21 billion a month earlier.

"While the trade deficit has sharply narrowed compared to January, the recovery was limited due to the decreased dividend payments from overseas," First Vice Finance Minister Bang Ki-sun said ahead of a meeting with economy-related vice ministers.

But Bang added as the number of foreign tourists has been rising since March, with the trade balance set to improve gradually, Asia's No. 4 economy is anticipated to post a current account surplus of $20 billion this year.

Korea plans to make efforts to revitalize the local tourism industry to boost domestic consumption, Bang added.

The country has been resuming local festivals starting this month after a three-year hiatus following the Covid-19 pandemic. The cultural ministry plans to host the Korea Travel Expo 2023 for a four-day run starting next Thursday as well.

The government plans to offer discounts on accommodation and other facilities starting in late May to induce more people to travel across the country, Bang added.

To attract more foreign tourists, Korea will increase the number of flights connecting to China, Japan and other Asian countries and offer discounts on tickets, he said.

Korea said it hopes to attract 10 million foreign tourists this year.

The number of foreign visitors to Korea hit a record high of 17.5 million in 2019, generating tourism revenue of US$20.7 billion, according to data compiled by the Korea Tourism Organization.

However, due to the Covid-19 pandemic, the number of visitors dropped sharply to 2.5 million in 2020 and 967,000 in 2021 before increasing to 3.19 million in 2022.

Yonhap