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South Korea Has $10.61 Billion Current Account Surplus

South Korea posted a current account surplus of $10.61 billion in September, the Bank of Korea said on Monday.

That's up from the downwardly revised $8.40 billion surplus in August (originally $8.455 billion).

The goods account surplus widened to $12.06 billion, compared to $8.89 billion in August.

For the period of January through September, the current account surplus is $80.63 billion.

Notwithstanding an improvement in the travel account, the services account deficit widened to $1.73 billion, compared to $1.34 billion the month before, the bank said, as the use of intellectual property account worsened.

The primary income account surplus narrowed from $0.95 billion in August to $0.79 billion in September, due to an increase in payments of the income on equity account.

The secondary income account had a $0.50 billion deficit. The financial account saw a net outflow of $10.60 billion, increased from the $9.15 billion during the previous month.

There was a net outflow of direct investment of $4.66 billion, up sharply from the $0.43 billion outflow in August due to an increase in outward direct investment and a shift to net outflow of foreign direct investment, the bank noted.

Portfolio investment recorded a $4.28 billion net outflow, larger than the $2.54 billion in the month before despite decreased outflows of foreign portfolio investment, as outward portfolio investment expanded greatly.

Financial derivatives posted a net outflow of $1.49 billion.

Other investment shifted to a net inflow of $0.40 billion, from a net outflow of $8.45 billion in August, owing mostly to a shift to net withdrawal of loans by domestic financial institutions.

Reserve assets expanded by $0.57 billion.

by RTTNews Staff Writer

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