Korea logs current account surplus for fourth consecutive month

Containers are unloaded at a port in Busan on Wednesday. [YONHAP]

Korea logged a current account surplus for the fourth consecutive month in August as imports fell more drastically than exports, preliminary data by the Bank of Korea showed Wednesday.

The country posted $4.81 billion in current account surplus in August, up from $3.74 billion a month earlier. The surplus this year amounts to $10.98 billion through August this year, less than half the $23.66 billion logged in the same period last year.

The goods account racked up $5.06 billion in August, up from $4.44 billion the previous month. Exports fell 6.5 percent on year, while imports plunged 21 percent in the same period.

A decline in exports for petroleum products and chips narrowed to 35.1 percent and 21.2 percent, respectively, in August from a year earlier. Exports for ships jumped 35.7 percent, and exports for automobiles increased 28.1 percent in the same period.

Exports to China and Southeast Asia fell 20 percent and 8.5 percent, respectively. But exports to the United States and the European Union rose 2.4 percent and 2.7 percent, respectively.

Energy imports decelerated 39.1 percent on year in August, narrowing from a 46.3 percent fall a month earlier, while raw material imports were down 27.6 percent on year.

“A fall in crude oil imports was due to a base effect of saving up oil last July and August in case of an energy crisis,” said a Bank of Korea official.

The services account extended losses to post $1.60 billion in deficit owing to a deficit in the travel account. But the deficit narrowed from $2.53 billion in July, as travelers from Japan, China and Southeast Asia jumped compared to outgoing travelers, according to the Bank of Korea.

The primary income account, which measures the wages of foreign workers and dividend payments from overseas and interest income, posted a $1.47 billion in surplus due to an increase in interest income.

A larger amount of dividend payouts by electronic and financial holding firms in August affected the primary income account, according to the central bank.

The Bank of Korea said the annual goal of achieving the $27 billion in current account surplus will be feasible, saying exports will recover.

But it noted uncertainties caused by the Israel-Hamas conflict, which brought up the oil price and raised fears over inflation.

“The chance of it prolonging is low, but we are closely monitoring the situation,” said a central bank official.

BY JIN MIN-JI [jin.minji@joongang.co.kr]