S. Korea's current account surplus jumps to 8-month high in May: BOK

SEOUL, July 1 (Yonhap) -- South Korea's current account surplus greatly widened from a month earlier in May as its surplus in the primary income account rose, while the deficit in the service narrowed, the central bank said Friday.

The country's current account surplus came to US$10.36 billion last month, compared with a $3.37 billion surplus in the previous month, according to preliminary data from the Bank of Korea (BOK).

From a year earlier, the May figure marks a $2.04 billion increase, and is the highest since a $10.85 billion surplus posted in September 2015.

South Korea has posted a current account surplus for 51 consecutive months.

The sharp increase was partly attributed to imports falling at a faster clip than exports.

In May, the surplus in the products account came to $10.74 billion, up from a $9.56 billion surplus in the previous month, the BOK said.

Exports slipped 2.4 percent on-year, while imports plunged 8.6 percent. Both exports and imports have dropped every single month since the start of last year.

The service sector, on the other hand, narrowed its deficit to $1.14 billion from a $1.62 billion deficit in the previous month.

"The deficit in the service account narrowed on an increased income in construction and other business services," the central bank said in a press release.

In the primary income account, the country posted a surplus of $910 million in May, a sharp turnaround from a revised $4.07 billion deficit in the previous month.

The turnaround was largely attributed to a rise in dividends income, which moved from a $4.51 billion deficit in April to a $470 million surplus last month, according to the BOK.

bdk@yna.co.kr
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