South Korea’s current account surplus posts $2.29bn in May

8 July, 2020 12:00 AM printer

SEOUL: South Korea's current account balance posted a surplus in May after logging a deficit in the previous month on the back of an economic fallout from the COVID-19 outbreak, central bank data showed on Tuesday.

Current account surplus amounted to 2.29 billion U.S. dollars in May, after recording a deficit of 3.33 billion dollars in April, according to the Bank of Korea (BOK).

Both export and import declined in double figures amid the continued negative effect from the COVID-19 outbreak, reports Xinhua.

Export, which accounts for about half of the export-driven economy, tumbled 28.2 percent over the year to 34.55 billion dollars in May, and import retreated 24.8 percent to 32.05 billion dollars.

Trade surplus for goods reached 2.5 billion dollars in May, down 3 billion dollars from a year earlier.

Services account balance, which measures the flow of travel, transport costs and royalties, logged a deficit of 480 million dollars in May, down from a deficit of 950 million dollars a year earlier.

Primary income account, which includes monthly salary and investment income, recorded a surplus of 540 million dollars in May, down from a surplus of 1.29 billion dollars a year ago.

Financial account, which gauges cross-border capital flow without transactions in goods and services, posted a net outflow of 3.24 billion dollars in the month.

Overseas direct investment by local residents fell 70 million dollars, while foreign direct investment in South Korea declined 110 million dollars.

For the portfolio investment, which includes stock and bond transactions, overseas investment by domestic residents, expanded 4.1 billion dollars in the month. Foreign investment in local stocks and bonds reduced 380 million dollars.


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